Private Stock Trades Investigated By SEC
If the SEC has its way, the murky market in private company stock may soon become more transparent.
Investors are jumping at the chance to buy stakes in hot technology companies, but the process by which shares of those privately-held companies are traded is relatively unregulated. Even the most sought-after private companies -- like Facebook and Twitter -- don't have to disclose basic pieces of financial information, forcing most outsiders to simply guess about a company's income and profit. The market is exclusive, the valuations are high and the transactions have relatively little government oversight.
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