The trading in pre-IPO shares is booming over the past decade, a recent report published by Nyppex Holdings states that the trading volume of private shares doubled last year to $9.3 billion. It goes without saying that the participates in the market of illiquid stocks are consistently on the rise. Acknowledging the rising popularity of pre-IPO trading and the possibility of financial frauds and orchestrations committed by even reputed names (like Goldman Sachs’ role before Facebook IPO) SEC is cracking down on this marketing with a lot of regulations. Though these actions might help in reducing the worst practices of financial managers, it might also hamper the investors from investing in exciting pre-IPO offers.
Despite several restrictions huge players in the private-shares market, employees of pre-IPO firms and early investors mostly in technology and online companies sell their shares to common investors via a network of brokers or fund managers. Despite several fund managers it is not 100% safe unless you buy pre-IPO share through reputed stock brokers and fund mangers.
Hartford Group International is Diversifying:
The highly reputed Hartford Group International offers several products and services related to financial investments. They are providing top notch services for their clients for over 9 years now. With a fickle financial market all around the world they are now planning ahead and are diversifying in to other verticals like insurance, venture capital and selling pre-IPO issues. Their research team is now looking in to pre-IPO Opportunities in the online and affiliate marketing industry. A simple website like RetailmeNot which was run by a few individuals raised around $191 during their IPO, and the shares value increased 30% on their debut date. Employees and investors who had pre-IPO shares made a huge fortune that day. Realizing the potential of affiliate and online marketing companies the Hartford Group International is looking for opportunities in these industries.
Post Facebook IPO fiasco, investors are extremely wary about the valuations of the pre-IPO companies. To overcome the investors’ worries and to provide confidence, the group is currently conducting individual audits on several start ups and exciting small sized affiliate and online marketing companies. They have an excellent research team and the team is looking in to several prospective companies that are at the cusp of launching their IPO. Their research team will also work on the pre-IPO valuation of the stocks to make sure the investors will pay the right amount for the stocks.