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Welcome back thanks for joining us so we take a stock tip or.
Except any information you learned about a company on a social media sites such as Twitter we all go to Twitter these days myself included to get news to share information.
But would you make your investment decisions based on what you're learning from there you -- think Twitter doesn't ballot.
You know verify the -- of all the people so oft times.
We have -- people posing to meetings big time executives.
Saying things about companies and it is affecting stock prices this is this out this is definitely a cyber -- -- here to tell us all about it.
And the story really caught my eye is Jennifer -- with foxbusiness.com.
Are reporter -- standings coming -- Are right so how at how did this story catcher -- first well.
Happened in January there are two cases of both men and it was this company's there at the therapeutics.
-- in the small cap pharmaceutical company that's usually have a stuff happen exactly all day and then it is audiences is a small manufacture of Smartphone I felt and that's the thing is they target these small cap companies that are very volatile and so that when they meet these false statements about a company.
Their stocks have these ridiculous listings and January.
In both cases a phony account was -- it that closely mocked.
And very influential treat it.
And what happened was -- alleged improprieties at this company for example -- one they said they were being investigated by the Department of Justice for -- Which wasn't sure which doesn't -- okay what happened was its stock.
Plummeted 2.5 percent infecting.
That is insane obviously in the -- -- different here.
And not what happens is that you would think that typically these -- the short traders which you know our investors about stock over -- -- and then make them money.
And before the company can come out and -- it.
-- -- -- -- -- -- In these two cases with these companies say just told us about today find out who -- called Brett.
Not yet an SEC isn't that's that that's an SEC told me that says that day are aware -- -- that they understand that the problem.
They are trying to investigated but it's typical you know they have to treat IP addresses -- have to try to find out where these people are coming from and of course.
A lot of times it happens so quickly that by the time the company finds out about it -- the SEC.
It's they're gone you know they've made their money and have gone and obviously there's always a fine on its feet -- benefited who had the biggest treat at that time.
But it's -- so you have to ask the average retail investor.
-- you and me people who just you know our regular -- about stocks.
We should definitely do our home what's the message -- and the lesson for the regular Joseph Aaron best so like he said the retail investors like you.
They really need to be careful because.
Twitter does not verify everybody -- -- it's mostly celebrities.
And you have brands and everything like that.
So because they don't verify and then you really have to kind of operating on this honor system and believe what people are -- about as accurate.
So what people really need to take -- step back and because things travel so quickly and then on Twitter -- -- take a step back and say I'm not gonna make this big investment decision.
Based on -- this conference and said maybe.
Get it out but not from elsewhere -- information from elsewhere at the same time that -- he has a publication on investor about.
Which -- investor dot -- investor.
Which pretty much told you what kind of fraud without -- -- that might have said though they haven't been many cases so there's really has only been one and it was.
The closest one that's.
Employer look throughout -- terminals implement that the closest one was in 2000 patent these two defendants were -- 150000 dollars each.
Creating this company that they essentially is at the pump and dump scheme meant that they used Twitter to.
Say they're stock recommendations.
An anti -- this is news that you can use as we are all odds for ABCs and myself included.
I go to Twitter to find stories get out scenes stories I'd like to follow which -- and friends because they know he's in Cyprus hey slow moving so fast exact that you -- -- Typically find anti find -- -- homes were really look into it kind of let's make sure that way you know.
-- those guys they -- -- time their treatment of the markets and so it's not unheard of to get stock confirming.
And from Twitter but he just have to end the care exactly and that's what one of the sort traders who is victimized and -- -- -- -- earlier this year.
He recommended that maybe try to consider.
I'm verifying the accounts of market movers for example influential triggers and people do -- of the market because.
They are just as important as a celebrity for example or -- brand.
And you can stop -- by using the dollar signs and stickers and that's obviously continue the dollar sign a JPL for apple and then you can click on that and just -- you can -- see related tweets now so it's something that if you're not careful.
And you take that advice.
And -- barreled into Twitter is being held responsible.
It's not great now actually one company it was a typical I believe in Oakland needs -- to -- and it -- tried to.
I have seen that -- because they allowed accompanied to the line and kind of pretend to be them and it -- there cause them -- pretty much but they -- the case.
The day after they filed it's as of now Twitter hasn't been there really -- spot -- I -- -- -- always say you know our information just out there you have to make up your mind ready for my kids stock -- it and move money based on what's happening that letter to the SEC's obviously aware what exactly are they doing about this.
They didn't get back -- from the anyway so I don't know what they're trying to do of course you know we've had all those Twitter hacking is a heck.
So there -- -- as you know Burger King was attacked Jeep was attacked.
But -- -- was you know they got on that Twitter account and they essentially.
Completely change their Brennan -- all -- these ridiculous seats.
Well they Twitter has not said that they understand that they need to get better security obviously that's not gonna stop -- speak.
Always signing at worst -- -- just any or if and that it I really believe that it's going to be up for the brands.
The protect themselves I say I agree with you and and I and -- only -- this with.
Information moving so fast and people.
Honestly being unable to keep up with the flow of information at least that fact checking and veracity part of it -- We might start to see.
Us moving opposite direction and kind of just revert tough old behaviors -- I am the kind of like something NASA teams we can keep moving this fast.
It's risky and I -- schemes which is essentially the broader -- for this has been around for a decade for a very long time but -- you know people is supposed -- on the Internet for instance invented so.
Now it's on social -- and play he's that happens so fast.
Even worse and it's a -- -- Tampa where we find your story you can search on foxbusiness.com.
Or on my -- actually.
And we have chatters to right into the show every day Johnny saves he's a daily.
-- -- thinking he says I don't gamble myself but I would hope my portfolio manager.
But only use trusted information.
I mean I don't think any portfolio manager I hope no portfolio manager would lady -- movies based on ads that are out.
-- -- isn't anyone listening and other frequent.
-- I think you I just -- -- study.
Where they -- Under certain mattress was the best they -- is the best place to keep your money well yeah I'm saying.
The moves in Cyprus which we'll get to -- 12 and they hit that indicates at least it was according.
To my grandfather I -- -- -- -- he's -- much for coming on fox things dot com reporter great story be careful out there if you're investing and now I want to say that's the stock market.
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