Bloomberg Law
June 29, 2015, 1:17 PM UTC

SEC Allows Tweets for Startups Raising Money

Ellen Rosen

When a new company is seeking investors, using 140 characters is just fine with the U.S. Securities and Exchange Commission.

Last week, the agency’s staff, in a ‘‘Compliance and Disclosure Interpretation,’’ said a startup can post a Twitter message about its stock or debt offering to gauge interest among potential investors.

The SEC announcement continues the agency’s trend of warming up to social media, which began two years ago when it approved the use of posts on Facebook and Twitter to communicate corporate announcements such as earnings.

“It’s a brave new world,” said Joe Wallin, a Seattle- based attorney who ...

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