Facebook Believed To Be Stopping Secondary-Market Trading This Week

This week Facebook is going to be stopping the trading of their shares on secondary markets as they prepare to file for an IPO in early May. Facebook representatives instructed companies that help investors buy and sell stock in closely held companies to stop trading its equities this week.

Facebook filed for the IPO in February to raise $5 billion in the largest-ever Internet public market debut. SharesPost Inc. and SecondMarket Inc. are two of the biggest secondary market websites where Facebook is being traded. Halting the trades would give Facebook enough time to account for their shareholding base.

“At Facebook’s request, SharesPost will cease facilitating transactions in Facebook stock as of Friday end of day to help ensure the company’s orderly transition into the public markets,” said the company in a note to clients.

SharesPost settled with the U.S. Securities and Exchange Commission over claims that they were acting as an unregistered broker of shares.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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