The log-on icons for the Facebook and Twitter on an Ipad. The SEC announced that social media could be used to announce public information in lieu of more traditional press releases as long as companies notify investors about where the information will be presented ahead of time. (Regis Duvignau, Reuters)
The guidance from the Securities and Exchange Commission is an effort to clarify disclosure rules after the agency opened an inquiry into a post made last July on the personal Facebook page of Netflix's chief executive, Reed Hastings.
The SEC investigated whether his announcement that the movie and TV streaming service had hit 1 billion hours viewed in June violated a rule that requires important information to be disclosed to investors at the same time.
The SEC said on Tuesday that it did not initiate an enforcement action or allege wrongdoing in that situation....MORE
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