The SEC has announced it will change the rules on company financial reporting to taking into account the emergence of social media.

Chris Cox, SEC Chairman was quoted in their press release as saying:

“The last time the SEC issued guidance in this area, the idea of ’social networks’ hadn’t yet been developed, and creating a social network where shareholders could meet and exchange views was barely imaginable. Ongoing developments in technology have increased both the markets’ and investors’ demand for more timely company disclosure on the Web, and in turn, raised new securities law issues for public companies to consider.”