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Whoa - net influences big business SCARY

Discussion in 'The Pub' at netrider.net.au started by Ktulu, May 18, 2007.

  1. An online tech blog posts a fake news item about a delay of a new Apple product.

    Story here

    Apple shares drop $6 - reducing companies overall value [temporarily of course] by $4 billion seeing how share price is partly determined by demand, and a bunch of investors got scared and sold out - raising availability, reducing relative demand & thus dropping the price.

    This is incredible though: a blog did this. A freakin' rumour :eek:

    Such is the power of the internet to distribute information quickly, effectively, and inaccurately by design if such is your want.

    Imagine if it was on purpose and someone sunk $20,000 into Apple shares when they hit their low after only 6 minutes.
    Selling them when everyone realised the story was fake and the market recovered would mean that person made $848 ... minus whatever $30 brokerage fee applies, that still ain't bad for a days work :shock:

    What if you had some real financial clout?... let's say a million bucks to invest?
    Well you just made $42,000 if you so choose to sell afterwards. Maybe you hang onto them. Maybe you launch a heavily discounted takeover bid for a controlling share in a company simply by asking your 15 year old nephew to write a crappy review of their product on his blog[?]

    I am impressed, surprised and a little purturbed by this.

    Almost confidence scheme-like tactics could be employed to profit from this. It doesn't matter how real a review is, or how discounted as 'fake' it can be, or how quickly that is done: as long as you scare enough people to make a difference.

    A Nigerian e-mail relies on producing hope in the foolish few.
    This market-scaring would rely on producing fear in the foolish few.

    ... and assuming such a review couldn't be traced back to you - or even if it was and you published it on a server in another country - would it be legal?

    Got my savings ready, time to call in a bomb-threat to the BHP Steelworks, I reckon.
  2. Ex.....cellent.


    <-- writes for tech blog www.gizmag.com
  3. There are laws in place, in this country at least, to keep a lid on the type of deliberate behaviour you are talking about. They do get enforced, too, with a number of high profile individuals winding up in pokey in some instances. The regulators tend to let the small players go a bit, unless they have a big effect in the marketplace.
    America... now that's a different story.
  4. ASX-cellent :p

    It also means significant things for market share, I guess.
    If you can reach enough people - you can damage someone's reputation something fierce.

    Get more circulation and give it 6 months... you'll be a journo gun for hire, Loz :shock:
  5. Circulation ain't a problem - gizmag gets something like 750,000 unique visitors a month. I just need a large business I don't like... :grin:
  6. can you write how google will go bust tomorrow and that everyone needs to sale their stock.

    I'm ready to buy it at 5c a share :twisted:
  7. ...So you want little out lay & a big return? :cool:
  8. Isn't that how business is done? :)
  9. Watch Telstra at 2.30pm Monday. :twisted: