The Securities and Exchange Commission (SEC) is looking into the trading of shares in privately held companies that include Facebook and Twitter, says a media report.
“SEC is looking into the trading of shares in privately held companies that include Facebook and Twitter,” the Wall Street Journal said, attributing the news to a source familiar with the matter.
The report said that SEC probe was at a preliminary stage and appeared to be focussing partly on funds, set up to allow investors’ access to shares in private companies.
The agency has sent letters to several participants in the trading, seeking information about topics that include how such funds are valuing shares of the private companies, which don’t publicly disclose financial information, it noted.
SEC Facebook and Twitter declined to comment.
Further, the investigating agency is understood to be looking at possible breaches by any of the tech companies of an SEC rule on financial reporting, as a result of increased activity by the investment funds.