SEC: Social Networks Are Safe Place to Make Corporate Disclosures

The Securities and Exchange Commission has given the green light for companies to use social networks instead of press releases to disclose business information as long as investors have been notified which network will be used. The ruling clarifies confusion about how communications over social media were affected by Regulation FD, which requires companies to make disclosures about their performance in a publicly available format.

The Securities and Exchange Commission has given the green light for companies to use social networks instead of press releases to disclose business information as long as investors have been notified which network will be used.

The ruling clarifies confusion about how communications over social media were affected by Regulation FD, which requires companies to make disclosures about their performance in a publicly available format. It stems specifically from an investigation into an announcement Netflix CEO Reed Hastings made on Facebook in June.

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