Mary Shapiro (Chairman, SEC) has forwarded a letter to Representative Darrell Issa (R. CA) (Chairman, House Oversight Committee) detailing SEC plans to expand the availability of capital to start-up companies through private sales of stock that do not require full disclosure. Oddly enough, though there will be less obvious transparency (including more private buyers without requiring SEC reporting), private companies soliciting more buyers through small exchanges will yield more publicity, and perhaps more data for valuators.

The SEC is responding to a dramatic drop in IPOs. See more on the rule-changing plan in Jean Eaglesham’s article in the WSJ “U.S. Eyes New Stock Rules” (subscription required).