Facebook (FB) IPO Causes Secondary Market Turmoil
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With the upcoming Facebook (Nasdaq: FB)(NYSE: FB) IPO likely only a month away, shares have stopped trading on the secondary exchanges.
This is bad news for SecondMarket -- so bad, the firm has cut about 15 positions and might be looking to trim more.
There's no doubt Facebook's IPO will draw attention from all corners as the world's largest social media company has a lot of push and pull with both advertisers and its own users. But that interest isn't easy to come by, and now SecondMarket and others will need to rely on trading in companies like Twitter, Foursquare, and Dropbox to satisfy volume needs.
Beyond tech stocks, SecondMarket is looking into other arenas, according to Bloomberg. For example, the company has been mulling the initiation of a market which would allow fund managers to raise money for alternative investments like wine, diamonds, and, presumably, art.
SecondMarket might also launch an initiative for community banks. With a small market for often illiquid stocks of smaller institutions, local executives and businesspeople find it hard to off the stock. The banking program is in its early stages, Bloomberg said; the firm has recruited about four to six banks for early participation.
This is bad news for SecondMarket -- so bad, the firm has cut about 15 positions and might be looking to trim more.
There's no doubt Facebook's IPO will draw attention from all corners as the world's largest social media company has a lot of push and pull with both advertisers and its own users. But that interest isn't easy to come by, and now SecondMarket and others will need to rely on trading in companies like Twitter, Foursquare, and Dropbox to satisfy volume needs.
Beyond tech stocks, SecondMarket is looking into other arenas, according to Bloomberg. For example, the company has been mulling the initiation of a market which would allow fund managers to raise money for alternative investments like wine, diamonds, and, presumably, art.
SecondMarket might also launch an initiative for community banks. With a small market for often illiquid stocks of smaller institutions, local executives and businesspeople find it hard to off the stock. The banking program is in its early stages, Bloomberg said; the firm has recruited about four to six banks for early participation.
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