We know that fake news played a role in the election of US President Donald Trump and the outcome of the Brexit referendum. But it is also being used to influence stock markets.
Fake news has become a buzzword in politics since US President Donald Trump was elected last year, but the rapid spread of deliberate misinformation has also taken hold in financial markets, making investment decisions for both institutions and individuals more difficult.
Manipulation of share prices for profit has been around since stock markets were first created centuries ago, but in the past few years the rise of social media has boosted the trend at an alarming pace.
People are increasingly using Facebook, Twitter and anonymous websites on the internet as their main sources of news, making themselves vulnerable to inaccurate or deliberately falsified information which informs their opinions and decision-making.
Analysis by US company Buzzfeed showed that the top 20 fake stories about the US presidential election last year received more engagement on Facebook than the top 20 news stories from the major media outlets. Fake news also played a key role in the Brexit vote in the UK, with well-targeted stories and photographs from the “Leave” camp believed to have swayed the outcome.
Esta historia es de la edición 24 August 2017 de Finweek English.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición 24 August 2017 de Finweek English.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.