Amidst the ocean of current-day media sources, it takes no more than a few clicks to get any news to go viral. “Fake news” suddenly becomes the talk of the town. Fake news can rise from anywhere, ranging from politics to education and does not limit itself to any particular boundaries. It could be from politics to finance or from trade to foreign relations.
Every day, many freelancers and bloggers publish their writings on several websites. Not many of them are professional journalists, and therefore the articles are also not always authentic. It is not new to manipulate the media and move asset prices through the written word. It stands true in the very sense of the term, “Pen is mightier than the sword.”
Several statistics reveal that tireless talking by several analysts who predicted “great rotation” from bonds to stocks in the recent future was “fake.” In short, we can say that misinformation is unreliably sourced from various opinions, driven by opinions. Experts opine that investors will be greatly impacted even if you lower the stock market by one per cent through the purposeful manifestation of fake news with proper business mechanisms.
In the case of mainstream media, responsible authorities arrest the person(s) responsible for spreading fake news to take proper legal actions. However, under most circumstances, the responsible persons remain free and out of bounds from the legal authorities. In 2013, an AP Twitter hack revealed high-frequency trading systems designed by respective investment firms that gauged and affected the market trends. Although, with time, several techniques have evolved into weddings through unreliable news sources. However, these are not entirely foolproof and cannot always be equally effective.
Financial news can also be used in exclusive pump-and-dump schemes for popular penny stocks. In the United States, back in 2014, the investors noticed the special Cynk Technology that significantly impacted the stock market by enhancing the stock value by over 25000% without any revenue production or employee strength. (Source: Business Insider)
To stay safe, you need to check the authenticity of the news before taking any action. Here are five ways to check the authenticity of fake news:
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