Stakes on Social Media

Abstract

Purpose: The astonishing development of social media and stock market groups to access algorithms and financially relevant information by the millennial since the extensive digitization has brought to the fore the power of social media. The main purpose of the article is to analyse the usage and potential of social media as an investment advisor. The study also aims to explore threats and opportunities of disseminating investment information on social media platforms. Design/methodology/approach: The ubiquitous nature of social media and technology has permeated deeply in young investors investing behaviours. A sample of 100 respondents is surveyed on the usage of social media forums and the potential of the financial information on such forums was assessed. Results: It is established that most young investors acknowledged the potential of social media for achieving additional returns. Conclusion: The opinions of millennial are consistent with the current body of evidence that apart from stock advice from the experts and research companies, the informal sources also have great credibility. Further, on examination of news and other secondary data sources, the benefits and threats of such platforms are revealed. Originality/value: The study is well timed and relevant, given the expanded role of the government in promoting digital platforms for investing and other financial services.

Keywords: India, Digitization, Social Media, Stock Market Groups

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