Businesses Take a Cautious Approach to Disclosures Using Social Media
In the beginning of this month, Securities and Exchange commission released guidelines and rules regarding the disclosure of company information on social media giants such as Facebook and Twitter.
Zynga being on the first companies to take a stab at this new method of releasing their information through their corporate blog and through Facebook and Twitter. This idea is relatively new and it is still risky for companies to put their corporate information on Facebook or Twitter. There are still a lot of uncertainties about this approach but as technology grows, more companies will able more willing to try out this method.
The new rules and guidelines set by the SEC could be a changing factor for investors in the future, for new start ups and younger corporations, these laws could make easier for the newer corporations to reach out to investors and make it less skeptical for these start ups to do so.