Federal guidelines allow a company to disclose material information about itself through social media as long as investors are notified in advance.

Question

Quizplus · Accepted Answer

The SEC (Securities and Exchange Commission) has provided guidance that companies can use social media outlets like Facebook and Twitter to announce key information in compliance with Regulation Fair Disclosure (Reg FD) as long as investors have been alerted about which social media will be used to disseminate such information.

Federal Guidelines Allow a Company to Disclose Material Information About