With recent news about public companies and social media monitoring (it is now mandatory for ASX listed companies to monitor the web) it is evident that share market companies should be scrutinising the web for real-time mentions about their companies and key people online.
But have you ever wondered how a simple tweet, forum comment or malicious press release could potentially impact stock market prices of a listed company?
An infographic from MarketWatch (USA) describes how traders in USA take real-time hints from trusted sources (like the AP’s hacked Twitter account or a Facebook Page) and make fast decisions based upon that information. Sophisticated systems can scan random sources (including Twitter) and predict outcomes. This demonstrates how integrated social media has become within the stock market and how social media media monitoring can avoid a price crash.