Determining How Social Media Has an Impact on Investing With the Younger Generation
Gavin Lisko
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Shanique Coombs
Abstract:
In recent years, social media has had a profound impact on almost every aspect of life, includingthe field of finance and investment. The purpose of this study is to investigate how social mediais impacting investing, specifically in individuals under 30 years of age. This study discovershow social media is influencing young investors at Kean University over the last year to date.Social media can affect all aspects of investment including risk, decision making and ROIresults. This study is conducted as a quantitative study through an online questionnaire. Theresults of this study were then compared to an independent analysis of the S&P 500. In theresults of this study it was found that social media is certainly having an impact on investmentwith the younger generation, specifically affecting risk. It has been discovered that the time spenton social media has a positive correlation with the volume of trades made throughout the year,speaking to increased risk. Misinformation has also been discovered to be very relevant in therealm of social media, potentially increasing associated risks connected with investing based offof social media. Social media is having a profound impact on the decision making and risk takenof many young investors.