Yesterday, the US Securities and Exchange Commission (new guidance for publicly-listed companies in using traditional websites and social media channels like blogs to meet the SEC’s public disclosure requirements under insider trading
The SEC’s new guidance on what tools companies can use concerning Reg FD is a huge step forward in opening up the closed world of regulated financial communication, providing companies, investors and anyone with an interest in a US-listed company with better means to more easily find, share and interactively make use of information that’s offered in electronic form.
I first heard about the SEC’s news in tweets, right? Better get used to hearing about Jonathan Schwartz who have called on the SEC to social media news release really comes into its own, given its purpose of presenting news and information in a format that is designed for online interactivity.
Others with unquestionably deeper knowledge than me about financial communication have posted some excellent first thoughts.
Jennifer Leggio, ZDNet:[...] The guidance, which will be effective upon publication in the Federal Register, does imply that there are certain stipulations that public companies must meet in order to take full advantage of the guidance. And, as with any disclosure, the companies should tread carefully in determining what should be disclosed, where and how. No matter, this is definitely an advancement that positively impacts companies, investors and social media pundits.
[...] Bottom line? If used carefully, this new method of disclosure could be a boon for social media allies, as well as public company marketing budgets and Web presence alike. However, the wire services are likely going to suffer a bit of a loss. the SEC is now participating in Twitter
Not a bad indicator that individuals within are taking this seriously.
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