Facebook has raised $500 million US from Goldman Sachs and a Russian investment firm in a deal that values the social networking site at $50 billion, the New York Times reported. Goldman invested $450 million and Digital Sky Technologies invested $50 million. Goldman has the right to sell part of its stake, up to $75 million, to the Russian firm. The U.S. Securities and Exchange Commission (SEC)is reportedly looking into the booming trade in privately held shares of popular social networking sites. A big reason the SEC may be curious about the trading of these popular private startups' shares is because once a company hits 500 shareholders, it must disclose certain financial information to the public, even if it hasn't filed for an initial public offering.
Well i wish i was an investor in Facebook 10 years ago. But I do not want anyone getting an unfair advantage in any kind of trading like this. The SEC is a lot tougher now since the credit crises. Hopefully they are doing a good job. For capitalism to work investors need to be confident that there are rules and that they are enforced.
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