How Does Marketing Relate to Stocks?

Well, the answer is not that easy, so lets just think about one part of it.

There is a group of business people out there known as Stock Promoters. It is their job to help publicly traded companies with little to no volume on their stocks gain attention in the trading world.

I bet you are already thinking that this can go two ways (at least) right? So let’s think about it.

When a Stock Promoter is hired to help a company market it’s stock to traders and investors who’s best interest is in mind? We would like to think both right? May be the company is quietly increasing its net worth and its profitability ratios are outstanding and its management is top notch…etc. In this case its to the benefit of both the investor and the company. Obviously this company was just not on the right persons radar and never got noticed.

On the other hand, what if the company is not so hot? What if the company ‘knows’ it too. but they hire a Stock Promoter anyways and instead of helping a company get deserved recognition, he/she is pumping ill-deserved hype into the market for a company in which no one in their right mind should invest. This hype drives the price unrealistically high and it inevitably falls, and hard.

So, there are just two of the many dilemmas faced when looking at a stock that is being promoted by a  Stock Promoter. It all comes down to personal research, some marketers are out there to do good and some are out to make a buck just like every other  industry. Do your research and you won’t get burned.

This was a short post because I wanted to leave a lot to the imagination. If you are a marketer, think about the different ways there are to promote a stock. If you are an investor/trader do the same, but with a Caveat Emptor attitude.

I’d love to hear the thoughts of my readers, please leave a comment if you have any stories to share on this subject.