David Gelles writes in the FT today about the way companies are starting to use social media to communicate with investors. An example is Ebay, which posted live updates on its negative fourth quarter results in January on Twitter.
Dell has an investor relations blog called Dell Shares, and Intel will enable live voting via the internet at its annual meeting in May.
This offers the potential for greater transparency, but there’s also a downside, Gelles says, as the use of social media raises questions about legal compliance with laws that regulate financial disclosures. Regulators are embracing these new channels, but there will be an onus on companies to ensure their staff don’t misuse them and incur penalties.
Read the article here.
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