Scammers attracted to Facebook’s pre-IPO share trading, regulators say

The frenzy over Facebook’s pre-IPO trading might be attracting fraudsters, FINRA announced in a statement today. Private companies sometimes allow their employees and others with shares to make private trades ahead of public offerings, but because the markets in such shares aren’t well-regulated, it’s difficult to know who actually owns legitimate shares. FINRA says if investors aren’t careful, they could end up forking over cash only to find that they’ve bought non-existent shares.

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