SEC Looking Into Private Sales of Facebook, Twitter, Zynga Shares

By Sajid Farooq
|  Tuesday, Dec 28, 2010  |  Updated 10:30 AM PDT
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SEC Looking Into Private Sales of Facebook, Twitter, Zynga Shares

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It seems the SEC isn't too thrilled about rich people throwing their money around to eat up private shares of some Facebook, Twitter, Zynga and LinkedIn.

A San Francisco-based company, among other firms, has been selling privately held shares of some of the Bay Area's hottest tech startups and charging fees to connect the buyers with the inside sellers.

Now the Securities and Exchange Commission is looking into the market, according to the New York Times. But it is unclear what exactly the SEC is looking for.

The overall number of stocks being sold in these private companies is not high but still there are  several new firms that have opened up to facilitate the sales.

Usually the options being sold are by former employees who have vested some of their shares early.

With valuations upwards of $60 billion, there are people who want a part of the action regardless of how small a piece they can get.

Despite potential demand, the actual amount of people who have access to the sales is limited. To be able to acquire shares, buyers have to meet strict standards set in place by the SEC, including a $1 million net worth.

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