In an effort to help companies adapt in the age of new media, the Securities and Exchange Commission (SEC) recently gave its approval to companies wanting to make announcements via social media sites such as Facebook and Twitter.
According to the SEC most social media sites are perfectly suitable methods for communicating with investors, as long as they advise investors about which platforms they will use prior.
“Under the new guidelines released on Tuesday, companies could take steps such as noting on websites and press releases that they will use social media to make announcements and giving web addresses for their pages. That would give investors the chance to subscribe to or join the right sites,” states the Chicago Tribune.
The announcement is an innovative step forward for public companies wanting to connect with investors and create a more open channel of communication.
Source: http://www.chicagotribune.com/business/sns-rt-us-usa-sec-socialbre9310uj-20130402,0,4543801.story
