SEC Should Back Off Markets for Startups' Shares

New companies like SecondMarket, Felix Investments, and SharesPost have sprung up in recent years to match accredited investors seeking to buy stakes in high-flying private companies with shareholders who want to sell. To the surprise of many entrepreneurs, venture capitalists and angel investors, the Securities and Exchange Commission is investigating these efforts. This is a waste of the SEC's limited resources, which would be better spent finding the next Bernie Madoff.

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