Internet Finance Forums: Investor Empowerment through CMC Collaboration or Market Manipulation on a Global Scale?

Abstract

The Internet plays an increasingly important role in the dissemination of information about exchange traded stocks including the rumors and tips frequently posted on Internet-based finance forums. The pervasiveness of the Internet presents many difficulties for regulators who must balance the potential benefits offered by the technology against the capability for some individuals to systematically cultivate and exploit the uncertainty or enthusiasm of others. This research-in-progress seeks important insights into how Internet forums might encourage or discourage moral dialogue. Initial results based on quantitative and qualitative analysis of postings to an Internet-based finance forum are reported. The preliminary analysis provides some insight into community views on the substance and ethics of stock price manipulation, and the role of Internetbased communication environments.