SEC Allows Companies To Announce News To Investors Through Facebook
Soon, investors will be able to learn more about companies in the same space where they play Candy Crush Saga. The Securities and Exchange Commission declared Tuesday that companies can notify their investors of news through Facebook and Twitter.
Soon, investors will be able to learn more about companies in the same space where they play Candy Crush Saga. The Securities and Exchange Commission declared Tuesday that companies can notify their investors of news through Facebook and Twitter.
The SEC’s report outlines that it’s now OK for companies to use their social media channels, such as Facebook and Twitter, to reach out to investors. However, the companies have to make sure ahead of time that investors know which sites will receive this information.
George Canellos, acting director of the SEC’s division of enforcement, commented on this new development in a press release:
One set of shareholders should not be able to get a jump on other shareholders just because the company is selectively disclosing important information.
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