Richard W. Jones

Mr. Jones is an attorney with the Atlanta,Georgia law firm of Jones & Haley,P.C. Mr. Jones concentrates his practice on securities law matters,such as public offerings,IPO's,private placements,SEC compliance,broker/dealer and investment adviser regulation and hedge funds. For further information go to www.corplaw.net

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SEC Adopts New Rules on the Use of Social Media by Public Companies

              Over the years the SEC has passed many rules and regulations designed to prevent public companies from targeted or narrow disclosures of material facts. These rules and regulations  usually arose in the context of  managements discussions with analysts,which,by its nature, excluded the general public. The SEC wants public companies to make those disclosures in a broad general manner so that the entire market has the benefit of that information in order to make their investment decisions. This was why Regulation FD was passed in 2000.

             In the intervening years social media has become a primary source of information for millions of people. In light of that,and in light of certain disclosures in social media by the management of important public companies,the SEC decided that it was time to provide some guidance to public companies in this area,and they passed a new rule dealing with these issues.

             Under the new rule public companies will be allowed to make statements to the public through social media if they make clear which social media will serve as their outlet for announcements.

            I was recently interviewed on this topic and you can see my responses and learn more on this topic by clicking on the following link:  https://lonelybrand.com/blog/sec-social-media-announcement/    

             Richard W. Jones is an Atlanta business lawyer and an Atlanta securities lawyer with the Atlanta,Georgia law firm of Jones &Haley,P.C.  He has over 30 years experience representing clients in securities and corporate matters.  Please see our website at http://www.corplaw.net/.

 

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