- Social media platforms have created a digitalized investing environment that provides investors with a more efficient way to access a variety of online information.
- Despite the benefits, social media makes it easy for influencers with limited investment knowledge to share their trading and personal finance opinions.
- Regardless of where you receive information, you should do your own research about potential investments by examining companies and their financials before investing in their stock.
The increased use of social media and shift toward a digital lifestyle have played a key role in facilitating the flow of information influencing investor decisions.
Social media platforms like Twitter, LinkedIn, Reddit and Instagram, among others, have created a digitalized investing environment that provides investors with a quicker, more efficient way to access a variety of online information sources.
In fact, almost 80% of institutional investors use social media as part of their regular workflow, and approximately 30% of them said that information they gathered on social media has influenced an investment recommendation or decision.1 Meanwhile, 34% of retail investors have made at least one change to their investments as a result of announcements seen on social media.2
Social media’s impact on investing is not new, although it has been amplified over the past year with the meme stock frenzy. The Securities and Exchange Commission (SEC) began allowing publicly traded companies...
Read Full Story: https://www.chase.com/personal/investments/learning-and-insights/article/social-medias-influence-on-the-investing-community
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