Media and e-Trading

Authors:

Milan Savic, savicm@net.yu

Veljko Milutinovic, vm@kondor.etf.bg.ac.yu

Where can we find the answer?

• Decide alone

• Ask Granny

• Get informed

To buy or not to buy,the question is now?

How can we get informed?

• Talk with experts

• Read newspaper

• Consult the media

• Browse the web

• Get formal education

• Watch TV

21st Century New technologies

Media expansionLots of information

Influence on e-TradingDecision is correct, if OK data

Decision is incorrect, if wrong data

• Heavier volume, the Internet toy retailer e-Toys

• Media attention

• e-Toys gets 228% increase

• Possible buyout of e-Toys

Example 1:

• Money magazine picked 3 stocks, and regarded them as good buys

• Biomatrix, medical product manufacturer, enjoyed the effects of magazine marketing,

since their stocks increased rapidly• After a few weeks, the stock was revalued and fell sharply

Example 2:

To be successful as an e-Trader, one should:

• Filter misinformation (particularly from the Internet)

• Realize the essence of information (based on real values)

If you were carefully listening,you can now pick your money

and dance with:

• Granny

• Or choose someone else