It’s the end of an era.
Private market trading in Facebook — the company that created the need for secondary brokerages in the first place — will be suspended after this week as the company takes final steps toward its initial public offering slated for May, according to people familiar with the matter.
The decision to halt trades is to allow the social networking giant time to prepare its first-quarter audits and internal shareholder counts without the shareholder base in flux, these people say.
More importantly, time is running out to trade: Each transaction — which requires the company’s approval — takes 30 days to clear. Facebook has indicated that trades made before April 1 will settle, according to one of the people.
To make the deadline, SharesPost moved to Friday a transaction that had been regularly scheduled for Monday, according to an e-mail viewed by CNBC. The transaction plans to offer 150,000 at a price of $38.00.Page 1 of 2 | Next Page