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.
This story is from the 24 August 2017 edition of Finweek English.
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This story is from the 24 August 2017 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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