Tech Startup Funding Frenzy Prompts SEC Scrutiny of Brokers

  • Chair White says agency concerned about `aggressive promoters'
  • Investors clamoring for stock as companies stay private longer

Shares in file storage company Box Inc. have fallen 31 percent since it began trading last year, and online crafts marketplace Etsy Inc. has dropped 54 percent.

Photographer: Victor J. Blue /Bloomberg

Slumping valuations for once-hot technology companies after they go public are drawing increased scrutiny from U.S. regulators.

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