SEC Gives Companies OK to Use Social Media for Announcements

Reed Hasting's Facebook page
Reed Hastings / Facebook
WASHINGTON -- The Securities and Exchange Commission will allow public companies to make significant announcements on Facebook (FB), Twitter and other social media sites provided they alert investors which sites they intend to use.

The decision allows companies to use social media in place of more formal websites. An SEC rule requires that all investors receive significant company information at the same time.

Companies should alert investors in press releases or regulatory filings that they are going to use specific social media to disseminate information that could potentially affect the price of the company's stock, the SEC said.

The question arose after Netflix (NFLX) CEO Reed Hastings said on his Facebook page that monthly online viewing by customers had exceeded one billion for the first time, the agency said.


Increase your money and finance knowledge from home

Investing Like Warren Buffett

Learn from one of the world's best investors.

View Course »

Socially Responsible Investing

Invest in companies with a conscience.

View Course »

Add a Comment

*0 / 3000 Character Maximum