Liquidnet has started trading shares of private companies such as Facebook that do not want to do an IPO. Staying private allows companies better control of their shares as they can dictate how to allocate shares and how they are traded. This is predicted to be a $7 billion market in 2011. The dominant firm in this type of trading is SecondMarket.
Liquidnet is widely known for 'dark pool' trading. Institutions can anonymously trade public stocks to minimize their effect on the price.
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