Some inroads have been made in harnessing the marketing potential for social networks. Their use as a source of investment capital has been largely unexplored. I doubt anyone would be seriously disillusioned by a loss on the Facebook stock market any more than they would be disilliusioned by losing an office pool. All the same, the platform would be wise to keep the investment limits low since promoting brand visibility is as much of an aim as bringing in investments.
Re: buying with credit
Phoenix
6/28/2011 10:01:57 AM
Not comfortable at all. The recent incidents of hacking and stolen credit card information really do not make me feel safe. They might use a system like paypal though. This might make things a little safer. But I've begun to wonder whether we will ever be safe doing online transactions where anyone anywhere has the potential to get our personal data. Just last April a friend of mine found out someone had used his credit card online fraudulently. He immediately cancelled it, but this goes on to show how vulnerable we really are to hackers.
buying with credit
AskAsa
6/27/2011 1:40:09 PM
How comfortable are you with the idea of buying securities with credit cards? It looks like one more red flag to me.
concept vs execution
Tenacious
6/27/2011 1:02:31 PM
What strikes me is that this appears to be a reasonable concept with a problematic execution. I'd like to know whether the SEC was consulted prior to this launch and, if so, what recommendations or caveats were added to the business plan.
Re: Nasdaq Social Partner Was Called on the Carpet
TelecomFreq
6/27/2011 1:00:52 PM
i agree there could be some drawbacks to investing via social media, but i do think the positives out number them. If done right this platform could open the door to investment to a large number of people who might have otherwise not been interested in it, ultimatly i think that is a good thing.
I hate to talk about regulation, but I think there will be the need for some in this form of investment, but only to protect the consumer; other then that I think letting things happen organicly would be best.
Re: Nasdaq Social Partner Was Called on the Carpet
Phoenix
6/27/2011 12:24:16 PM
Yes jwillnyc at present it does look like social media can be a questionable platform to sell shares. However, I feel may be in the future it might become an effective way of selling stock if there is a proper system in place to monitor and make sure that all the dealings are done in a transparent and accountable manner. Like you said proper metrics have to be devised to convert and deliver. When we talk of social media we can identify specific user groups using a particular network who may be a mature group of investors, as such targeted selling might be a possibility.
Re: Nasdaq Social Partner Was Called on the Carpet
jwillnyc
6/27/2011 12:58:32 AM
I agree Phoenix, investing through social media could pose a HUGE problem and should not be used as a platform for stock investing. It's really sad that the answer to innovation and new business growth seems to always involve social media. Given that proper metrics have yet to be devised on the ability of social to actually convert and deliver, I feel like business leaders need to take a step back and see it for what it really is.
Re: Nasdaq Social Partner Was Called on the Carpet
Phoenix
6/26/2011 11:09:05 AM
Yes investing through social media could mean another set of problems. A slight misrepresentation and a lot of people could be lead astray. Most of those people would be first time investors (mostly the younger generation) trying their hand out with small sums of money who don't know much about how the stock market works. The disillusionment with the share market will be major for first time investors and they might shy away from any future investments in the market.
Since we are talking about a lot of people here even if they loose only a few dollars each the total sum added up will be a very large amount and somebody could be deliberately profiting from the whole scenario.
Nasdaq Social Partner Was Called on the Carpet
Street Smart
6/25/2011 8:18:32 PM
#Scott McCaig, I certainly see your point about open source, but I don't think the analogy is quite parallel to Wikipedia here. I think the better analogy is to the efficient market, and asking if that could be aided or hindered by social media in the Loyal3 trading environment.
For my vote I think it would be the blind leading the blind and I wouldn't trust it. There has to be some basic, fundamental intelligence at work to "self-correct" market mistakes and I just don't see the kind of investors who would be buying fractional shares through social media as providing that.
My point was not that I trust wikipedia - I don't. It's that it sort of works for a different purpose. My learning was that there is a different need/market out there for mostly-pretty-good-but-don't-take-it-as-being-definitive information source. I certainly think there are issues with info of that type, and I would have never thought of it myself. Here's an interest combo of the items I mentioned. Would anyone ever factor in info from wikipedia when deciding whether to make a trade or not? e.g. If you were on the fence, could something in wikipedia sway you?
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