SEC probes private stock sales


The growing market for buying and selling shares of private companies may slow as the Securities and Exchange Commission begins to crack down on the largely unregulated process, The Wall Street Journal reported. Since late last year, the agency has been looking into disclosure rules and potential conflicts of interest involving brokers who connect buyers to private stocks, the article said. We need the same monitoring and tool sets that the institutional marketplace has come to rely on for credibility and trust, Vincent Molinari, founder and chief executive at GATE Technologies, told the Journal. This market is getting bigger, stronger and faster.

— Hallie Busta