SEC OK’s Social Media in Company Announcements

by | April 3rd, 2013

As of Tuesday this week, the Security Exchange Commission (SEC) gave clearance for companies to use social media such as Twitter and Facebook to make company announcements. The only catch: the company must clearly notify investors if – and which – social media outlets they will use to distribute material. This is to ensure that all investors have access to information at the same time, and non-exclusively.

For a company like Stocktwits, a social media platform dedicated exclusively to investment communication, this could present interesting new opportunities in audience engagement. And as a web development agency, the way we help companies strategize conversations online just got a little bit more exciting.

For full details, view the full SEC announcement here.

  • agbegin

    I think the move is a good one, but it definitely opens the door for trouble.

    Now (more than ever), companies will have to understand and control who posts on the company behalf. It’ll require a deep understanding of the company’s overall social media footprint as well as the strategy for engagement.

    It further solidifies that social media is *not* a marketing tool; it’s just another means of communication. Networks like Twitter, Facebook and Stocktwits are just tools we use to efficiently communicate.

    The difference is that the tools bring with them a lack of control, process and/or familiarity within organizations. Many individuals and companies are still learning how to (and how not to) use them effectively, and there will surely be great and horrific examples as we feel our way through the change from traditional information dissemination to more social, agile methods.

  • Serina

    That’s a really good point. I think this will hopefully force people to learn more about how social media works and how to really use online communication the right way. Hopefully we’ll all help each other move forward.

  • Thomas A. Powell

    One wonders if we make special allowances for fax back in the day as opposed to standard postal mail? Might be a fun historical research project.