The SEC is getting curious about intensified trading in shares of private social networks such as Facebook, LinkedIn and Twitter and social game
developer Zynga. The SEC reportedly has sent information requests to several participants in the trading of shares of these four private companies. The companies involved don’t stand to gain anything from the private trading, as the shares are sold by former employees and early investors. Facebook has an internal rule that bans current employees from trading their stock, but it has no control over former employees or outside investors.
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SEC Poking Around in Private Trading of Social Shares
Posted by: Rob Spiegel December 29, 2010 09:31 AMThe SEC is getting curious about intensified trading in shares of private social networks such as Facebook, LinkedIn and Twitter and social game
developer Zynga. The SEC reportedly has sent information requests to several participants in the trading of shares of these four private companies. The companies involved don’t stand to gain anything from the private trading, as the shares are sold by former employees and early investors. Facebook has an internal rule that bans current employees from trading their stock, but it has no control over former employees or outside investors.