Twitter And 37 Other Internet Startups Are Fighting The SEC's "500 Shareholder" Rule
They might not be your typical working-out-of-a-garage operations, but Twitter and Gilt Groupe are fighting to ease restrictions on startups.
Specifically, they’ve joined forces with 37 other internet-based startups to urge Congress to pass new legislation that would remove the requirement that businesses reveal their financial data when they reach 500 or more shareholders.
As it stands, when a company reaches 500 shareholders, they must disclose all of their financial data to the SEC. And this is seen by those opposing the rule as effectively forcing them into going public, possibly before they’re ready to.
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