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SEC Approves Tweeting by Startups to Test Investor Interest

Trying to figure out how many investors might want to fund your small business? Go ahead and tweet about it.

Startups are now able to post a Twitter message about their stock or debt offering to gauge interest among potential investors, the U.S. Securities and Exchange Commission said this week. The announcement continues the SEC’s trend of warming up to social media, which began two years ago when it approved the use of posts on Facebook and Twitter to communicate corporate announcements such as earnings.