Investing Online: Is it Riskier?

Investing is one of the most well-known financial related activities. Absolutely anyone can get involved in financial investing, and the advent of the Internet has actually made it much easier for people to do so. The ease of use is an obvious advantage of online investing and research, and there are many other advantages as well. It’s important to note, however, that there are also some definite risks involved in this activity. You should take all the possibilities into account to fully understand the actual risk you face from online investing.

Advantages of Online Investing

There are numerous advantages to online investing, but the following are some of the most beneficial.

1. Real-time Stock Updates and News

One of the greatest things about investing online is the fact that a person can use programs, stock information websites, and even smartphone apps to get live information pertaining to their stocks. When a person chooses to invest in the stock market, this information can be the difference between making and losing thousands of dollars.

2. Speed of Investment

Another great benefit of online investment is the speed at which a person can operate. Individuals can make any type of business deal online with only the click of a button. This allows for quick action, and in the investment world, the ability to react quickly is absolutely fundamental.

There are also some distinct disadvantages related to online investing, and the following can actually prove detrimental.

1. Lack of Support

One of the largest disadvantages related to online investing is the lack of support a person has when participating in the activity. There are always going to be websites that offer “professional advice,” but this really doesn’t constitute a beneficial relationship between an individual and an investment professional. This lack of human interaction ensures that a person has no one to share ideas with or get opinions from.

2. Stock Fraud Hazards

Another huge flaw with online investing is the chance of encountering stock frauds. There are numerous frauds out there, and some are surprisingly simplistic to carry out. In September of 2000, for instance, a 15-year-old boy was fined for carrying out an illegal “pump-and-dump” scam.

A pump-and-dump con occurs when a person posts false information and undertakes other fraudulent activities in an effort to get people to purchase a certain, usually worthless, stock. That person then sells all of his or her shares once this valueless stock has unnaturally inflated. Once the “pumping” ceases from the criminal, the stock will usually return to its former low price.

There are other fraudulent stock activities that can be perpetrated against unsuspecting victims via the Internet. Online stock trading makes unsuspecting customers more likely to fall for “chop stock” investments where companies sell certain stocks for much higher than they’re valued in an effort to turn a substantial profit for the person selling them at the expense of naive customers. In worst case scenarios, a stock fraud attorney may even need to get involved.

Online investing has made it much easier for the common person to get involved in financial investing. This is a great thing for the economy in general, but it’s imperative for a person to recognize the risks involved in this type of activity. It’s not that the Internet isn’t a safe place for investing; it’s just the fact that if a person doesn’t take proper safety measures, they could be scammed. As long as you follow appropriate investing practices, you should be relatively safe online.

Savannah Bobo is an English graduate and freelance writer/blogger interested in opening up discussions that help to combat Internet scams. Many of us think we are not vulnerable to misinformation online, but stock fraud is diverse and scammers are creative. A stock fraud attorney, such as those at the Page Perry firm in Atlanta, can explain the differences between analyst fraud, churning, and other types of stock fraud.

Child Safety On The Internet

All parents worry about their children. We worry about if we can trust them and who they are spending their time with. Ten years ago this was only a problem for teenagers and young adults, now, with the ever changing face of communication this can be a worry for parents of children as young as 4 or 5.

Research shows that by 2 years old more than 90% of American children have an online history and, at 5, more than 50% regularly interact with a computer or tablet device. It is more important than ever to consider the relationship between the internet and our children. The internet can influence and change childhood, emotional growth, social development, educational prospects and we need to understand the risks.

The uptake of social networking in young children has increased rapidly over recent years and, with the development of sites such as Club Penguin and Webkinz, social networking is now being directly targeted at younger children. The worry is often of the dangers that can come with internet use and there is a tendency to want to stop children using the internet all together.

With adequate privacy settings, and an understanding of what your children are using the internet for, we can regulate the use of the internet. By taking an interest in what they are doing, just as you would for sport or homework, they will take it more seriously and try to meet your internet expectations. Teach them from an early age about privacy and their identity; that they need to protect their identity and not give out personal information, and also make sure they understand passwords and who to interact with online.

Research shows that there are risks but that we need to understand their severity. As parents we worry about the internet because of the unknowns and because, often, neither children or parents fully understand all of the risks out there in the online world. The basic fact is that the risks that are in the offline world exist in an intensified and often more accessible form online.  Research shows that it is everyday factors making children more vulnerable and that those children with offline vulnerabilities – such as no support from parents, poor relations with friends, or those who are simply lonely  – are extending this to an online vulnerability. It is the job then of healthcare professionals, social workers, teachers and parents to see this problem offline and extend their concerns to children’s online behaviour.

Considering that children as young as 5 or 6 are as familiar with the internet and computers as they are with toy cars or dolls it is now necessary to regulate the use of the internet in a reasonable way for your children. Some advice is to keep the computer in a family room and not allow computers in a bedroom. If the computer is kept in a family room then time spent on the computer will be seen as a family activity and you can keep an eye on it.

Social media etiquette and appropriate behaviour is now a part of something we need to teach our children. Teaching your children the correct etiquette for social networking, the appropriate behaviour when posting information about themselves, and what they are uploading is important. Research is showing that young people are regretting what they have posted about themselves by high school and a rise in cyberbulling relates to the information that is being posted about them.

Media and technology impact on children’s social, emotional, and cognitive development is only beginning to be studied. There is some indication that our over exposure to the internet might be linked to a limited attention span in children, a lower comprehension, poor focus, and lack of basic literacy skills. This is affecting children’s work habits, thought processes and how they feel so, as parents, we need to be taking better steps to improve our families internet safety.

Jane writes about internet safety for kids based on raising awareness to resources such as the Vodafone Parents’ Guide.