Trading shares in privately-held companies will result in Security and Exchange Commission (SEC) sanctions against two firms according to Bloomberg News citing unnamed sources.
The two firms, Felix Investments Inc. and SharesPost Inc., both engage in trading shares in companies that are not yet listed on regulated exchanges. Felix Investments creates pools in which investors can then purchase shares, and SharesPost acts as a broker between private sellers and private buyers of non-publicly traded shares.
On sharespost.com, for example, shares of Facebook are trading at $38/share, even though the stock has yet to conduct its IPO. Goldman Sachs Group Inc. (NYSE: GS) once considered selling $1.5 billion in Facebook shares to “accredited investors” before dropping the idea.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
