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Socially Aware Blog The Law and Business of Social Media

Tag Archives: Securities Law

SEC Staff Guidance on the Use of Social Media in Securities Offerings, Tender Offers, Business Combinations and Proxy Contests

Posted in SEC, Securities Law

The staff of the Division of Corporation Finance of the U.S. Securities and Exchange Commission (SEC) recently provided guidance on applying its rules regarding communications in connection with securities offerings, tender offers, business combinations and proxy contests when statements are made utilizing certain social media channels. The staff’s guidance permits the use of a hyperlink… Continue Reading

The Guide to Social Media and the Securities Laws

Posted in Securities Law

REGULATION FD Beginning in 1999 and continuing into 2000, media reports about selective disclosure of material nonpublic information by issuers raised concerns that select market professionals who were privy to this information profited at the expense of others. A consensus began to emerge that selective disclosure (1) adversely affects market integrity (to a similar extent… Continue Reading

FINRA Issues Sweep Letter Regarding Use of Social Media

Posted in Financial Institutions, Securities Law

FINRA, having enacted new communications rules that specifically reference electronic communications, having issued two Regulatory Notices (linked here and here) providing guidance to the securities industry on social media, and having made social media and electronic communications exam priorities in two of the last three years, is now taking the next logical step:  conducting a… Continue Reading

Stop Insider Tweeting!—Feds Eye Social Media for Securities Shenanigans

Posted in Financial Institutions, SEC, Securities Law

Article courtesy of Morrison & Foerster’s MoFo Tech As financial institutions and investors turn to social media to instantly share snippets of news and potential clues about market trends, the FBI and SEC are monitoring such postings for evidence of insider trading and improper investment information. Companies must comply with pre-Internet federal securities laws covering… Continue Reading

SEC Offers Guidance on Use of Social Media for Public Disclosure

Posted in SEC, Securities Law

On April 2, 2013, the U.S. Securities and Exchange Commission (SEC) issued guidance in the form of the Report of Investigation under Section 21(a) of the Securities Exchange Act of 1934 which indicates that social media channels—such as Twitter and Facebook—could be used by public companies to disseminate material information, without running afoul of Regulation… Continue Reading

Relevance of Securities Laws in the Social Media Age – Seminar Series

Posted in Event, SEC, Securities Law

Join us for this timely seminar series in New York, Palo Alto, and San Francisco. The use of social media by public companies and their employees raises many legal issues, such as the application of the federal securities laws to communications made through company websites, blogs, Twitter and Facebook. Those communications implicate laws regulating selective… Continue Reading

Crowd Control: SEC Cracks Down on Crowdfunding Venture

Posted in Securities Law

“Crowdfunding” or “crowdsourced funding” is a new outgrowth of social media that provides an emerging source of funding for a variety of ventures.  Crowdfunding works based on the ability to pool money from individuals who have a common interest and are willing to provide small contributions toward the venture, which potentially collectively add up to… Continue Reading