The world of finance thrives on data and information and Twitter has certainly become a source of it. From influential players in the trade such as Central bankers, to company announcements and discussions, Twitter has become an almost must have tool for anyone seeking enlightenment in finance. Earlier in the year, Twitter earlier in the year led to the plunging of Twitter’s shares. Twitter Inc. was slated to announce its financial results at 4 pm Eastern Time on 28th April 2015, which was after the market closes. However, shortly after 3 pm Eastern Time, Financial services firm Selerity caused havoc when it tweeted the company’s first quarter earnings an hour before schedule.
Now a finance company is seeking to create an EFT out of a new Index it has created called the Market Prophit Social Media Sentiment Index. An ETF stands for Exchange Traded Funds and is a security that tracks the performance of another underlying asset such as stocks, futures or even indices. An Index on the other hand is the measurement of the value of a segment of the stock market, which is computed from the prices of the selected stocks. In this case, the performance of the Market Prophit Social Media Sentiment Index will determine the price of the movement of the ETF. EFTs are normally divided into shares and traded publicly on an exchange like shares in a company.
The index includes companies including Apple, Amazon.com, Microsoft, GoPro, Tesla, Baidu and Twitter among others. The ETF adjusts daily based on the sentiments posted on Twitter with daily tweets are analyzed by an algorithm to determine whether the sentiment is positive or negative thus determining the movement.