A potentially impactful accouncement was made yesterday by the SEC. Under certain circumstances, companies can rely on relating information via their websites to satisfy Reg FD requirements.
According to an IR expert in new technologies, Dominic Jones, “The move is significant as it could cut disclosure costs for many companies that today use paid PR wire services to distribute their disclosures. It could also encourage companies to make investments to improve their investor relations websites and facilitate the use of blogs for communications with investors.”
Dominc’s analysis of the landmark release is worth the read as his insight and perspective into the industry in unrivaled. It’s worth a read and to follow his analysis as he makes his way through the announcement.
Regardless of what comes next, it’s clear that the SEC envisions that blogs and web technologies
- make it easier for companies to communicate
- provide a forum for communication in which investors, given more info and links to outside info, can make better sense of financial communications
This also boosts the prominence of long-tail aggregation sites like SeekingAlpha as methods to aggregate and edit all this info sitting on the edge.
