Back in the day, when a hot company with scale and a lot of interest came along, there was nowhere for investors to express their enthusiasm about a company until the IPO officially happened. SecondMarket has changed that. The company manages periodic share-sale programs for privately held companies, and has emerged as an exchange where qualified investors — hedge funds, mutual funds, institutions, rich investors — can buy and sell pieces of privately held companies, including Facebook…
Thanks to SecondMarket, big-shot investors no longer have to wait until an IPO to express their enthusiasm about a company. And that means the froth and pop that used to take place exclusively on the NASDAQ or the NYSE in the opening trading days can now take place weeks or even months before the official IPO. That’s clearly what happened with Facebook.
Liquidity moves markets!Follow the money. Find the profits!
SecondMarket has constructed a great timeline on Facebook’s share price and market capitalization… The timeline shows Facebook’s price per share rising from $6.81 per share in February 2010, or a $15.66 billion valuation, to $21.32 per share, or $49.04 billion in December 2010 — a three-fold increase in the space of a year… In the space of two years, hundreds of transactions had pushed the value of Facebook up nearly seven-fold.
Post your thoughts below. No registration necessary.