abstract:Shadow stock is a stock of an already-listed company which has the same or similar industry as a new-listed company. Since the stock price of new-listed companies mostly boost up after being listed in a stock market, shadow stocks may also boost up to cope with the trend.
According to the Financial Times, the potential violation could stem from the fact that as the number of Facebook shareholders exceeds 500, the company would be required to disclose detailed financial information, something it has managed to avoid. (See Facebook, Twitter, And The ShadowStock Market).