Re: Selling Stock Through Social Media
TelecomFreq
6/23/2011 8:46:54 AM
all transactions come with risk, but doing business online needs to provide security, if this is addressed i do not see why it could not be done.
The risk of the user messing up and confusing stocks is an issue for the site to work out with thier interface, making a site that feels natural for the user to interact with will eliminate all of that, hopefully!
You're right on it tokyogai...this has the potential to be a very expansive project, and I think more and more people are going to catch on to this style of brokering.
Selling Stock Through Social Media
Street Smart
6/22/2011 3:58:30 PM
How do you spell REGULATORY NIGHTMARE? I just can't see the SEC going for this! I'm picturing a Venn diagram with three overlapping circles: Naive investors, Illiquidity (because of the fractional shares), and Compliance/Disclosure Issues (no prospectuses, no contact information for proxy mailings, etc.) In the overlapping center: Triple Witching Yikes!!!
I will say this... In recent months, Facebook has become a hotbed of charitable solicitation. There are "chip-ins" for everything from pet rescues to needy kids' school supplies and they get funded, no questions asked. There is Kickstarter where worthy arts projects race a clock to obtain all or nothing funding and they get funded, too.
The good folks of the social media sphere don't necessarily seem daunted by the prospect of sending their money off into the ether and getting nothing in return, so a stock purchase isn't necessarily out of the question.
Still, I question why someone who flips for say, Bud Light's new Super Bowl app, is necessarily going to make the leap to becoming an Anheuser-Busch shareholder without knowing anything about the company. That seems downright irresponsible.
Friends don't let friends LIKE random stocks!
Re: Selling Stock Through Social Media
driven
6/22/2011 3:33:40 PM
It seems a little risky to link your social networking site to buying stocks. The example "Loyal3" vs "LOYAL3" shows it'd be very easy to mix things up.
where's the Dislike button?
Scott
6/22/2011 3:21:34 PM
LOYAL3 has generated a lot of buzz about its plans to make investing in stocks almost as easy as clicking a Like button on Facebook. Earlier this month, LOYAL3 announced a partnership with Nasdaq OMX Corporate Solutions, a unit of Nasdaq OMX Group Inc. (Nasdaq: NDAQ) to sell stock directly to small investors through Websites like Facebook.
Oh, gee, what could possibly go wrong?????
Steer wide and steer clear of this mess.
Allegedly, the transaction costs would be covered by the company who's stock you're buying. So you could buy and sell at market price with no fees.
Since the accounts are small or even fractional shares, LOYAL3 wouldn't need to perform an actual market transaction for every Buy or Sell. They could aggregate many, many small transactions and net out the shares that are bought by one cusomer and sold by another. At the end of some time-period (an hour or a day?) they could execute a single transaction so their exposure reflected the sum of all their owners shares.
If it's truly done at no transaction cost, they would have to limit the business in some other way - like maximum value of shares traded - or there would be a stampeed of customers from other venues. More likely, I would expect some bid-ask spread.
Does that make sense?
Re: what seems off?
ProfR
6/22/2011 9:40:43 AM
This also seems odd to me. Can someone who buys $10 worth of stock also sell it later if they want to? If so at what cost?
So many people have their info stored on their social media sites already so i do not see why that could not be used to buy stocks. I know that Facebook is already interested in having their fingers in things like a national online ID so something like this would play right into their current game, they want to be a one stop shopping for their users, but so dont most large web based companies.
Re: blown away
Jacob
6/22/2011 7:25:30 AM
Selling and buying shares have to be handled in a secure way, so I don’t know how much it’s feasible through social medias. But anybody can share details about shares or share handling agencies along with the profit / loss details through such mediums.
Tenacious,
Your nonsense detector is going off. So is mine. This might be a great idea, but I'm guessing that these aren't the right guys to trust with your money.
I was already thinking this is an investment for sheep, you know -
- Bulls make money as the market moves up,
- Bears make money as the market moves down.
- Pigs get greedy so they lose money in the long term and
- Sheep follow the crowds and get slaughtered in any market.
And then I got to the part about "a conviction for fraudulent misrepresentation in a commercial dispute". Ha! Now, a guy with that in his past - making an application with the SEC - that's chutzpa.
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