SEC Enters Blogosphere
SEC Chairman Christopher Cox posted an official communication to a blog last week, stating that he was intrigued by the idea of letting companies use Weblogs to disseminate important corporate information.
In late October, avid blogger Jonathan Schwartz, the chief executive of Sun Microsystems Inc., posted an open letter on his blog to Chairman Cox, encouraging the SEC to look to the Internet to achieve the SEC's objectives of greater investor access to information. Last week, Chairman Cox responded by posting a comment on Schwartz’ blog, inviting Schwartz to talk with the agency about the idea of allowing companies to disclose significant financial information through blogs.
A growing number of major companies, including at least thirty Fortune 500 companies, are now publishing corporate blogs, nearly double the number in December 2005, according to the Fortune 500 Blogging Wiki, a collaborative tracking site.
Currently, one of the main impediments to the use of blogs for the disclosure of financial information is Regulation FD, which requires companies to use a method for disseminating financial information that is “reasonably designed to provide, broad nonexclusionary distribution of the information to the public.” One question Chairman Cox and the SEC must entertain is whether blogs meet the “widespread dissemination” requirement.
>One question Chairman Cox and the SEC must entertain is whether blogs meet the “widespread dissemination� requirement.
Does 10x more media mentions than a traditional SEC news release do it?
See here:
http://www.irwebreport.com/daily/2006/11/15/coxs-blog-post-gets-10x-more-media-mentions-than-official-release/