|  | | 2006 News and Press Releases | | |
HEADLINE NEWS:
SEC May Consider Corporate Use Of Blogs
Staff Writer – Orlando Sentinel
Securities Mosaic. November 8, 2006
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EXCERPT: In the first official communication posted to a blog by a chairman of the Securities and Exchange Commission, Christopher Cox said he was intrigued by the idea of letting companies use Weblogs to disseminate important corporate information.
Cox has invited the chief executive of Sun Microsystems Inc., avid blogger Jonathan Schwartz, to talk to the agency about the idea of allowing companies to disclose significant financial information through blogs. The SEC chief showed interest in Schwartz's recent request for blogs to be used as a way to expand investors' access to information. His response to Schwartz, posted on Sun's Web site on Friday, caught the attention of the online world. A growing number of major companies now publish corporate blogs or online diaries. The SEC position is that current regulations do allow for blogs, like news releases, regulatory filings, Web sites and Webcasts, to be used to disseminate companies' financial information, provided a particular blog reaches a broad audience. A 2000 rule known as Regulation FD, for Fair Disclosure, ended a long-standing practice by forbidding companies from providing significant information to stock analysts and other Wall Street insiders ahead of the public. The rule requires the method or methods used to be "reasonably designed to provide broad, nonexclusionary distribution of the information to the public." |
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