SEC OKs material disclosures on Facebook, Twitter
The Securities and Exchange Commission confirmed today that public companies can announce key information on social media sites such as Facebook and Twitter, so long as investors are informed as to which accounts may publish news.
The acknowledgment was published in the SEC's report of investigation on Netflix, and makes room for social media disclosures to be in compliance with Regulation Fair Disclosure (Regulation FD), a rule that requires companies to distribute material information to investors and the general public non-exclusively. In essence, companies and their executives can reveal news on investor-aware accounts without fear of retribution.
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