What is the SEC's position on companies that communicate with investors on social media?
A) It is illegal to do so
B) It is legal so long as companies inform investors which outlets they intend to use
C) It is legal so long as the postings are restricted to Facebook
D) There are no limitations on companies communicating through social media

Question

Quizplus · Accepted Answer

The SEC's position is that it is legal for companies to communicate with investors on social media, but they must inform investors which outlets they intend to use. This is to ensure that investors have equal access to information and are not disadvantaged by using social media outlets they may not be familiar with.

What Is the SEC's Position on Companies That Communicate with Investors