SEC weighs new rules for private companies’ stock

DALLAS (AP) — The chairman of the Securities and Exchange Commission says her agency is considering whether to ease rules on private companies that issue shares.

Chairman Mary Schapiro says in a letter to a lawmaker that she asked the SEC staff to review the rules. The changes might make it easier for companies such as Facebook and Twitter to raise money by issuing stock, without facing costly reporting rules imposed on public companies.

Private companies can keep their finances secret if they have fewer than 500 shareholders. If they have more, they must provide details on their companies and finances.

The new rules might replace the process by which technology companies and other startups offer shares publicly through initial public offerings. Companies that have IPOs must disclose financial details about themselves.