Corporations Turn To Social Media To Release New Information
Social media has been growing in popularity over the last few years, and as more and more people start using social media outlets, large companies have been doing the same to reach out to their customers. The SEC has recently allowed companies to not only reach out to its customers via social networking but investors as well. The SEC is allowing corporations to release information about their company on social networking sites as long as its investors are well informed on which sites the information is being published on.
It is very smart of these corporations to turn to social media when publishing information because more people are willing to look over this information, and news in this form is more accessible than news aired on television. Posting information through social media lets a larger quantity of people know what is going on within a corporation, and if the news is positive, it may just increase costumer confidence in that corporation. As technology advances and people turn towards new means of communications it is good that corporations account for these actions and ultimately benefit themselves.
Written by: Jessica Ho
Source: The Wall Street Journal
Goldstein, Steve. (2013). SEC Backs Social Media for Disclosing Corporate Information. The Wall Street Journal. Retrieved From: http://online.wsj.com/article/SB10001424127887323611604578398862292997352.html?mod=WSJ_business_whatsNews