Tuesday, October 09, 2007
Thursday, July 12, 2007
Using Words to Move Stock Numbers
And in Russia, News.com.au notes that hackers issues a false statement announcing the arrest of the CEO of one of the country's main oil producers. The CEO must have been happy on one hand about the inaccuracy, but unhappy that the stock price fell, albeit by less than 1 percent.
This isn't a new type of activity on the Internet. Stock chat rooms used to be one of the main stomping grounds of they who would induce changes in stock prices. It's fascinating how the mere act of telling people what they would like to hear causes them to take specific actions, like spending their money, even though the source of the advice is highly suspect. That shows the stories that have the most power are actually not the ones others tell us, but the ones we tell ourselves. It's not the words on the screen, but the words in the head that tell us what we'd like to believe - that up is down and that we can have something for nothing just by asking.