Restoring the Secondary Trading Market Act

Small investors sometimes want to buy or sell shares of private companies — firms not listed on a stock exchange — through off-exchange trading. States currently can regulate these transactions. This bill blocks states from imposing rules, fees, or limits on off-exchange secondary trading, as long as the company publishes certain current financial information. It would make it easier and cheaper to trade shares of private companies, helping startups and their employees cash out — though state securities regulators argue state-level rules catch fraud that the federal system misses.