Twitter, Square Are Said to Limit Stock Sales by Shareholders

Twitter Inc., Square Inc. and LivingSocial.com are taking steps to bar investors from selling stock on secondary exchanges, an effort to cap the number of shareholders, said people familiar with the companies’ plans.

Twitter asked investors in its recent funding round to refrain from sales on exchanges, according to two people familiar with the matter, who asked not to be identified because the agreement is private. Square sent a contract to investors that would prohibit sales, two other people said. LivingSocial is considering similar restrictions, according to two people.