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SEC Investigates Facebook Private Shares Trading

December 28, 2010

There are a couple things about this story. One, even though I am linked to Facebook to promote my blog which is linked to my book, I have to ask, what real value does Facebook provide? Marketing is the only one I can see. The whole concept of social networks is a ruse, it’s bull. The virtual world is a playground for people who do nothing but promotes themselves. Facebook is a marketing tool at best. Granted it has changed the world — but for the better? I doubt it. Rolling up your sleeves is the way to get things done. I spend a great deal of time doing research. I read alot of news online plus read newspapers, books, and magazines. I do not use Facebook to socialize. I do that face to face for real relationships with real people who I know and develop real feelings.

Second, this is one more game that investors are playing at a very high level and should be regulated as it smacks of CDS activity which helped bring the economy down. Enough already. And $56 billion? Please, I feel ill at the thought of such obscene valuation at a time when 26 million American are out of work, or working part-time.

NY Times DealBook reports:

The S.E.C.’s interest is unclear, but a number of private exchanges have popped up to facilitate the trading in these companies, including SharesPost and Second Market. The sellers of stock are former employees or early-stage venture investors looking to exit their already valuable stakes. The buyers are hoping to secure a piece of these hot companies before their initial public offerings.

The frenzy is most fierce surrounding Facebook, the most actively traded company on these exchanges. Two weeks ago, SharesPost sold 165,000 shares in what it called a “significantly oversubscribed” auction that valued Facebook at $56 billion.

Entire article, click here

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