Shareholders may soon have to log on to social media to access crucial information about their investments.
The U.S Securities and Exchange Commission (SEC) yesterday sanctioned the announcement of mergers, annual figures and the like using these platforms.
However, this business would have to make all shareholders aware of which social media website they need to look for announcements on, in order to prevent some getting a bigger insight into company affairs.
The move shows just how widely accepted that social media websites like Facebook and Twitter have become. Most public-trading companies have now made some sort of effort to manage social media marketing campaigns. Among them are Microsoft, Apple, Barclays and Walmart.
In a statement cited by bbc.co.uk, the SEC suggested that many of these companies could benefit by communicating with their shareholders in this way.
It said: “We encourage companies to seek out new forms of communication to better connect with shareholders. 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.”
According to abcnews.com, The SEC also confirmed it would take no action against Netflix CEO Reed Hastings, who used his personal Facebook account to announce monthly viewing figures last June.