Last week, I discussed how I was looking more into Social Networks for Investing. I highlighted the two I knew about, and left it at that. Then, the team from SprinkleBit reached out to me and said, “Hey Robert, you need to check out what we're doing over here!” I took the bait, and check it out – needless to say, it's pretty neat.
SprinkleBit is based on a simple idea: make the markets easier to understand of everyday retail investors. Studies show relatively low stock market participation among retail investors, due to a lack of information, transaction costs, and limited access to information.
Furthermore, 2 in 5 Americans would give themselves a C, D, of F grade for their understanding of finance! And to top it off, studies reviewed by the Library of Congress indicate that stock market investors lack basic financial literacy.
Another report shows college students have inadequate knowledge of investing. The problem spreads across a broad spectrum of college students of both genders, various academic disciplines, and experience groups. Retail investors account for less than 2% of trading volume on the NYSE. The US securities markets are dominated by institutional investors. Those are the big guys, like banks and private equity firms.
What SprinkleBit Does
So back to our goal: make the markets more accessible and easier to understand for the the Average Joe. They're doing this by incorporating crowdsourcing and social media into investing – for free!
Some eyeopening statistics about how investors learn about investing strategies:
- 53% of investors feel social media helps them be more knowledgeable about investing
- 60% of retail investors turn to friends, family, and peers for financial advice
- 33% use social media as a primary means of gaining their financial info
That's where SprinkleBit comes in. SprinkleBit is a stock market simulator and social networking platform, and added in the SprinkleBit Voting Power Index (VPI).
VPI is an index generated by the members of SprinkleBit! It organically shows their confidence in a stocks performance, based on a number of metrics, like how many people are holding the stock and other ranking factors.
If the VPI is positive, it shows that the SprinkleBit community believes that the stock will appreciate in value. Conversely, if the VPI is negative, the community believes it will depreciate in value.
Check out this cool infographic provided by the SprinkleBit team:
Looks interesting – doesn't it? Plus, SprinkleBit is free. So, go check out SprinkleBit now!
What are your thoughts? Are you going to check it out? If you have any questions, I know the SprinkleBit team will be following up here, so post them below!