The NYTimes.com recently featured an article "Losing a Goose That Laid the Golden Egg", which discusses the online secondary exchanges that facilitate trading in private companies such as Facebook, LinkedIn, Zynga and Groupon. These exchanges, which include SecondMarket and SharesPost, facilitate trades by existing investors in these private companies that want liquidity prior to a company's initial public offering. It is also a way for venture capital firms to obtain positions in high profile companies without participating in a formal financing round. The article discusses the market for these secondary exchanges and the challenges they face as the recent crop of high profile companies go public and there is no longer need for the secondary exchanges. Here's the link: http://dealbook.nytimes.com/2012/02/02/losing-the-goose-that-laid-the-golden-egg/?scp=4&sq=secondary&st=cse
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