Wednesday, December 1, 2010

[Video] CNBC - Want to Invest in Facebook, Groupon, Twitter Before They are Public? Try SecondMarket

An interesting video on CNBC today in regards how one can get in on the action for private companies before they come public or get bought out.  Services like SecondMarket are allowing insiders who receive shares early in a companies life to sell; and hence interested buyers to get in.  Outside of the mechanism there is a lot of interesting discussion about the 'short termism' of our markets and how it is causing some companies to shy away from going public - a pet peeve of mine.  When 70% of the market action each day is based on 1/4000th of a second trades, the original intent of marrying capital with investors to create long term value becomes more or less a moot point.

I did check out the site, and aside from private companies you can invest in a series of other more illiquid sectors; unfortunately there was not a preset list afforded without registration to see what exactly was available.   []

Founded in 2004 and with offices in New York and Palo Alto, SecondMarket is a registered broker-dealer and THE secondary market for illiquid, restricted and alternative investments.

[10 minute video]

[Mar 5, 2010: WSJ - Facebook CEO in No Rush to "Friend" Wall Street]
[Nov 30, 2010: Groupon - From Startup in 2008 to Potential $5-$6 Buyout by Google in 2010]

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