SEC Challenges Pre-IPO Trading in Secondary Markets

The Securities and Exchange Commission has signaled that it will be taking a close look at prices and practices for pre-IPO shares in secondary markets. It has brought charges against two firms, Felix Investments LLC and Facie Libre Management Associates, for hidden and unreasonable charges assessed in the purchase of Facebook shares. On March 14, SharesPost, one of the biggest secondary market makers, agreed to pay $800,000 to settle an SEC complaint to register as a broker-dealer.