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Tweeting to Raise Capital

SEC issues interpretation that says companies can use Twitter messages to promote certain upcoming stock and debt offerings.

By Ellen Rosen, Bloomberg | Updated on June 29, 2015

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

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.

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