Sunday, February 5, 2012

Losing a Goose That Laid the Golden Egg

Not everyone on Wall Street is giddy over Facebook’s initial public offering of stock. A group of private exchanges has popped up in recent years to accommodate a fast-growing trading market in the private shares of the Internet companies like Twitter and LinkedIn. Facebook has driven much of this growth, emerging as the most actively traded private company by a wide margin.

At SecondMarket, one of the largest of such exchanges, the trading of Facebook shares accounted for about a third of the firm’s total revenue last year. Now, with Facebook on the verge of listing on either the New York Stock Exchange or the Nasdaq, the secondary market is faced with the prospect of losing its golden goose. Not to mention that Zynga, Groupon and LinkedIn, all of which were actively traded on private exchanges, have recently gone public....

Find out more at http://dealbook.nytimes.com/2012/02/02/losing-the-goose-that-laid-the-golden-egg/?src=dlbksb

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