If there’s one person in the world who gets the intersection of the social web with investing, it’s Howard Lindzon. So when the SEC ruled Tuesday that company postings on sites like StockTwits/Facebook/Twitter were as good as news releases and company websites (as long as investors were aware of the use of those sites), I immediately turned to Howard for his thoughts. And sure enough, he had a great post today.
One of the most powerful points he made spoke to the fine line that StockTwits walks as a finance social site. They carefully split the difference between 1.) allowing managed /curated content, tools and control necessary for compliance and governance and 2.) enabling the spontaneous, multi-source, lighting-quick conversation paradigm that makes social media so incredible. As he put it:
Rules matter and if they are clearly stated and thoughtfully enforced, communities can thrive (learn, mentor, make a little coin). We [ed. StockTwits] added some basic financial features like the ability to create disclosures/tracking and the removal of the delete function to ensure trust is at the forefront. No matter what others call us or think, Stocktwits is a NEWSWIRE. Information is flowing from one to many, all day, every day and it is full of context.
The social web will continue to grow and the power of the content being created on that web will continue to impact even the most regulated industries. How other platforms can adapt and fuel that change, like StockTwits has done, will be fascinating to watch.
Check out the full blog here.