SEC Chair Mary Jo White On Social Media

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In testimony before the U.S. House of Representatives Committee on Financial Services, SEC Chair Mary Jo White stated that the Netflix Section 21(a) report stands for the proposition that use of social media is acceptable “so long as investors have been alerted about which social media outlets will be used to disseminate such information.  The report clarified that issuer communications through social media channels require careful Regulation FD analysis comparable to communications through more traditional channels, and that the principles outlined in the Commission’s earlier guidance on Regulation FD apply with equal force to corporate disclosures made through social media channels.”

The SEC recently declined to comment on the minimum number of Twitter followers needed for a company to safely tweet its earnings. According to the Wall Street Journal, Lona Nallengara, acting director of the SEC’s corporation-finance division, stated “We do not comment on specific situations.”

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