The SEC Weighs In On Social Media Use by Publicly Traded Companies
No one wants to be caught sharing inside information if they work for a publicly traded company. For this reason, many public companies have policies against sharing company information via social media by non approved staff members. But what if en exec in his or her zeal shares some info about the company like Netflix CEO did via Facebook, which led to a jump in stock prices? That worked in their favor, but what if the info was bad and led to a drop in stock prices?
In a recent blog post, HootSuite’s Evan LePage pointed out that SEC filings and press releases just don’t deliver at the same speed (and viral nature) of social media. Thankfully, the SEC recently made the decision to allow for the use of social media to disseminate information as long as investors are informed as to where this information will be shared. My thought is “what investor would not follow a company they invest in via social media?” It’s like the government had to step in and tell investors “hey… follow the companies you invest in.”
This should also serve as a wake up call for business leaders to always be mindful of what they do share via social media, because people are paying attention.