The SEC recently issued two interpretations that address your use of interactive social media, like Twitter, in accordance with the securities laws.   These interpretations permit your firm to now use a hyperlink to satisfy the legend requirements and, at the same time, limit your responsibility where your communications are retransmitted, like a retweet. 

The major aspect of these interpretations regards the use of otherwise lengthy legends that disclose, among other things, a disclaimer or warning to a customer that can be lengthy at times.  With the limitations on the number of characters you can use in say Twitter or LinkedIn, firms were essentially foreclosed from posting anything that required a legend; not any more. buyholdsell.jpg

Under certain conditions, the SEC has opened the door for firms to use a hyperlink to the otherwise lengthy legends.  The most important condition is that the social media in question has a limitation on the number of characters that can be posted. 

Having now allowed firms to post under this condition, what happens if a third-party, over who the firm has no control, reposts the firm post and omits the legend from the repost.  The SEC has stated that the retransmission of the firm post, as long as the firm was not involved with it, will not be attributed to the original posting firm. 

In these interpretations, the SEC has finally acknowledged the viability of social media to a firm.  So, feel free to Tweet or post to LinkedIn, but make sure that you have a legend hyperlink.  *

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