Younger Investors Give SEC’s New Social Media Policy the Thumbs Up

SEC Social Media Policy

We’ve heard about brands like Zillow embracing the SEC’s new social policy, but how is the investment community reacting to the approval of social media as a platform for the dissemination of financial information? A new study from Marketwired takes a look at how investors are reacting. The infographic below gives an overview of the results, but here are those that we found most interesting in terms of financial and social overlap.

Overall, it seems like investors under 40 are game for this new pro-social media approach, while their older counterparts are dragging their heels in favor of more traditional forms of communication.

  • 70% of investors under 40 believe the SEC social ruling is beneficial to investors
  • 60% of respondents under 40 regularly consult social media to research investment options

The disparity seems to hinge on what these age groups consider to be credible information sources. The younger sect puts a good amount of trust in social sources, while the older the investor, the less likely they are to have faith in information disseminated through social media.

  • 53% of investors under 40 found social info credible
  • 18% of 40-65 year olds found social info credible
  • 0% of those over 65 found social info credible

This younger subset of investors not only believes in the power of social information sources, they are actually utilizing them and have faith that brands will make that shift as well.

  • 40% of investors say they are already using social media as one of their information sources
  • 80% of respondents believe more companies will disclose information via social media