Dow Industrials For Startups? Pre-IPO Index Opens

SAN FRANCISCO (AP) — Because startups aren’t required to report regular financial results as publicly traded companies are, it can be hard for outsiders to get a sense of what hot ones like Facebook and Twitter are really worth.

Now, a private online stock exchange hopes to shed some light on the subject by rolling out an index that reflects the changing values of such companies.

Starting Wednesday, SharesPost is releasing an index that will track the values of seven startups over time. It’s similar to the way the Dow Jones industrial average measures the value of a basket of big stocks.

SharesPost founder Greg Brogger says the index will help investors and startup employees get a sense of what emerging companies are worth in real time.

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