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Policy

SEC Approves Companies Using Social Media to Release Info

As long as investors know

Reason Staff | 4.2.2013 6:00 PM

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The Securities and Exchange Commission gave explicit permission for companies to use social media such as Twitter and Facebook to announce key information, so long as investors have been alerted about which sites will be used to disseminate such it.

"Most social media are perfectly suitable methods for communicating with investors, but not if the access is restricted or if investors don't know that's where they need to turn to get the latest news," said George Canellos, acting director of the SEC's division of enforcement, in a statement.

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