On Tuesday April 3rd , the Securities and Exchange Commission (S.E.C.), the federal agency regulating the US’s stock and options exchanges and other electronic securities markets, outlined new disclosure rules that clarify how companies can use social media.

Source: http://www.blackchristiannews.com/news/The-Securities-and-Exchange-Commission.jpg

During last December, the market regulator warned the company Netflix, whose shares are traded on the NASDAQ market, that the S.E.C. could take action against the company regarding their chief executive’s message, Reed Hastings, posted in his Facebook page. On his Facebook feed the chief executive congratulated his team for exceeding one billion hours of video watched in a single month. For the federal agency, the message violated “regulation fair disclosure”, which requires a company to publish material information to all investors at the same time. (suite…)