SEC May Relax Policies Based On Facebook Trades
Facebook might not have to disclose its finances to the public next April -- if the Securities and Exchange Commission raises the maximum number of shareholders for nondisclosing companies.
Facebook might not have to disclose its finances to the public next April — if the Securities and Exchange Commission raises the maximum number of shareholders for nondisclosing companies.
SEC Chairwoman Mary Schapiro (pictured) recently sent a letter to lawmakers based on a recent probe of private market trading in the shares of Facebook and other companies, according to The Wall Street Journal.
The proposal suggests that getting rid of certain disclosure requirements might motivate more companies to have initial public offerings, potentially resuscitating the IPO market, which simply hasn’t kept up with the rest of the economy’s rebound from the last recession.
The SEC has also suggested giving companies more flexibility in how they raise money: By allowing companies with more than 499 shareholders to keep certain financial details to themselves, firms could also opt to issue more shares privately.
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