Nasdaq to join SharesPost to sell private companies


Nasdaq OMX is joining the race to attract share trading in fast-growing tech companies at an earlier stage in their existence, forging a joint venture with one of the pioneers of the private secondary markets in the United States.

The agreement with Silicon Valley-based SharesPost will see Nasdaq venture for the first time into the market for private companies, tapping into a form of trading that bestowed soaring valuations on companies such as Facebook, Groupon and Zynga before their initial public offerings.

The Jobs Act rule change that has raised the limit on the number of shareholders in a private company from 500 to 2,000 has made it possible for companies to tap into a wider shareholder base without going public, he added. – (Copyright The Financial Times Limited 2013)