The SEC has just given companies carte blanche to issue important news announcements on their Twitter and Facebook feeds -- maybe even on Google's Google+ service, if anyone still uses that. 

On the one hand, this is a bonanza for the social networkers, who can expect to reap big business from more active use of their sites. It's also good news for corporate PR folk, who can reach more customers and investors through social media -- not just with corporate news, but with corporate advertising.

But what does it mean for you and me, the ordinary investors of the world? Fool contributor Rich Smith explains...


The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

The article SEC Makes a Boneheaded Call on Social Networking originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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