SecondMarket has received a SEC inquiry - New York Business Law — New York Business Law

SecondMarket has received a SEC inquiry

by Fred Abramson on January 3, 2011 · 0 comments

The SEC is looking into secondary stock trades of private companies.  According to Fortune, SecondMarket now has received a formal inquiry from the SEC.

What follows is an official statement from SecondMarket spokesman Mark Murphy:

“We have now received a voluntary request for information from the SEC regarding ‘Pre-IPO Pooled Investment Funds.’ We are fully cooperating with the SEC in this inquiry. SecondMarket is a registered broker-dealer, fully regulated by FINRA and the SEC. We do not intend to comment further on this matter.”

It appears that the SEC is only looking into pooled investment funds, often setup to circumvent the 500 investor requirement where a company must go public.  Facebook announced today that they have received one such investment from Goldman Sachs.

The Law Office of Frederic R. Abramson represents business in New York. I can be reached at 212-233-0666

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