Recently SEC has allowed company's and its executives to use social media like Facebook, Twitter, etc. to communicate informations to the public.
This is considered to be a bold step with the increasing connect of the public with the social media. As per the press release SEC say's that using social media is almost equivalent to the press release and that the company's can use these media provided the investors know which outlet the company intends to use.
This step was taken by SEC as a result of a facebook post by the Cheif Executive of Netflix in July stating that the streeming - video company has exceeded one billion hour in a month for the first time which resulted in a sharp increase in firms share price.
SEC took up the investing in December to find out if the post has violated the protocol which restrains the company's from selective disclosure. After several months of investigation SEC concluded that social media can be used as a medium to communicate information as long as they make it clear which media the company will be using.
This is considered to be a bold step with the increasing connect of the public with the social media. As per the press release SEC say's that using social media is almost equivalent to the press release and that the company's can use these media provided the investors know which outlet the company intends to use.
This step was taken by SEC as a result of a facebook post by the Cheif Executive of Netflix in July stating that the streeming - video company has exceeded one billion hour in a month for the first time which resulted in a sharp increase in firms share price.
SEC took up the investing in December to find out if the post has violated the protocol which restrains the company's from selective disclosure. After several months of investigation SEC concluded that social media can be used as a medium to communicate information as long as they make it clear which media the company will be using.
No comments:
Post a Comment