S&P 500
7,507.80
-0.22%
Dow Jones
51,595.40
-0.32%
Nasdaq 100
30,411.80
-0.23%
Russell 2000
2,975.48
-0.09%
FTSE 100
10,384.80
-0.34%
Nikkei 225
71,987.20
+0.02%

Investing

Secondary Market for Pre-IPO Equity Under SEC Scrutiny (GS)

Photo of Paul Ausick
By Paul Ausick Published

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.

Follow 24/7 Wall St. on Google
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Paul Ausick |

Nasdaq Enters Private-Company Trading Market

ThinkstockIn a move that was probably inevitable, the Nasdaq OMX Group Inc. (NASDAQ: NDAQ) today announced a joint venture with…

JPMorgan to Begin Trading Pre-IPO Stocks
Paul Ausick |

JPMorgan to Begin Trading Pre-IPO Stocks

JPMorgan is about to offer its trading clients a new service that matches buyers and sellers in the booming market…

Douglas A. McIntyre |

Who Cares Who Buys Facebook Shares?

There is a notion that Goldman Sachs Group (NYSE: GS) should not be allowed to buy shares in Facebook for…

Paul Ausick |

Nasdaq Launches New Market for Private Companies

The Nasdaq OMX Group on Wednesday morning launched its capital marketplace for private companies, the Nasdaq Private Market. The new…

Jon C. Ogg |

SecondMarket Launches ‘The Facebook Fund’ To Buy Shares Before IPO (FB, GSVC)

courtesy Facebook Inc.SecondMarket is taking a new approach to allowing investors to buy into Facebook ahead of the upcoming IPO,…

$2.5 Billion Deal in Permian Basin Oil Patch Shows Surprising Strength
Paul Ausick |

$2.5 Billion Deal in Permian Basin Oil Patch Shows Surprising Strength

Oil and gas producer WPX Energy on Monday announced a deal to acquire privately held Felix Energy for $2.5 billion…

Jon C. Ogg |

The 17 Most Important IPOs To Watch In 2012

The initial public offering market  in 2012 is likely to be much stronger than many anticipate. Despite the lingering uncertainty…

Jon C. Ogg |

Facebook IPO Talk Getting Closer, Sort Of

courtesy Facebook Inc.Facebook has remained an elusive IPO so far.  The company has maintained that this IPO would not likely…

Jon C. Ogg |

A Fresh IPO Take: The New Pre-IPO Fund From Keating (KIPO, SZYM, NPTN, GSVC, LNKD, TINY)

Whether or not initial public offerings are performing properly in the after-market is one thing, but the game that investors…

Top Gaining Stocks

CarMax
KMX • Vol: 7,330,419
Corning
GLW • Vol: 22,800,969
Intel
INTC • Vol: 233,719,006
Super Micro Computer
SMCI • Vol: 68,465,534
Enphase Energy
ENPH • Vol: 13,978,376

Top Losing Stocks

Accenture
ACN • Vol: 41,744,333
EPAM Systems
EPAM • Vol: 5,636,587
Cognizant
CTSH • Vol: 61,311,400
Coterra Energy
CTRA • Vol: 73,319,495
Kroger
KR • Vol: 26,704,230