US

Facebook is about to trigger SEC intervention

Facebook Inc. said it intends to breach a critical 500-shareholder limit this year, meaning it will be forced to begin disclosing financial information or stage an initial public offering by April 2012, according to a new 100-page private-placement memo being distributed to potential investors in the company.

The popular social-networking company said in the document that it intends to breach a critical 500-shareholder limit this year. Crossing the limit triggers a Securities and Exchange Commission rule that requires that companies file financial information—even if their shares don’t trade publicly.

Full story: Facebook Opens Door for Financial Disclosure or IPO in 2012