Public companies get green light to disclose via social media

SEC: Firms must inform investors which social channels they will use

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The Securities and Exchange Commission hasĀ announcedĀ that public companies are allowed to disseminate key information through social media channels. The approval comes with a caveat, however: companies must inform investors about which social media platforms they will use to distribute such information, and those channels must be open to everyone. "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. The SEC's clarification (it announced a similar position in 2008) means that publicly-traded real estate companies like Zillow, Trulia, Move Inc., Market Leader and ZipRealty may disclose performance information that could impact their stock prices on social networks. Some of these companies are highly active on social media and may find this...