As some of you may have noticed, we love to take surveys because of the valuable data they provide. Â Despite the fact we’re an online company, quite a number of our surveys are done offline (i.e. at conferences). Â Why? Â There’s no point in trying to figure out the impact of the web on small-cap investors if you’re only going to ask online people.
To this end, here is some incredibly valuable information that we discovered about small-cap investors over the last 12 months:
- The web accounted for 74.3% of all research into new small-cap investments, up from 67% in 2007
- 73% of Investors Conduct the Majority of their Research (75%+) into New Stocks Online
- 48% of Investors Conduct All of their Research (95%+) into New Stocks Online
- 64% of Investors Use Discussion Forums For Information and/or Research, up 7% from 2007
- The web accounted for 78.3% of all research into new small-cap investments, up from 74.3% in 2008
- 73% of Investors Conduct the Majority of their Research (75%+) into New Stocks Online, up from 73% in 2008
- 55% of Investors Conduct All of their Research (95%+) into New Stocks Online, up from 48% in 2008
- 54% of Investors Use Discussion Forums For Information and/or Research, down from 64% in 2008
Clearly, small-cap investors are overwhelmingly using the web to research new investments. Â We didn’t get as far as asking why they rely on the web so heavily but one answer has to be the fact that major financial media don’t cover small-cap stocks extensively. Â As such, small-cap investors are forced to resort to search engines, electronic shareholder forums and social networks to help them discover new small-cap stocks.
I hope you found this information to be helpful. Â If you’re a small-cap CEO that isn’t conducting a significant online investor relations program, take this data to your board …. and then call me 🙂 Â Hey, couldn’t resist. Â The data is just that good.
Regards,
George
[…] The web accounted for 78.3% of all research into new small-cap investments in 2009. […]
[…] another AGORACOM survey in which over 1,000 investors participated, we found that 78.3% of research into new small-cap […]
Hey, Darrell. I know I tweeted you the answer but for the sake of sharing with everyone here, the data comes from over 1,000 investors surveyed at 4 different Canadian investor conferences in 2008 and 2009.
Regards,
George
George Keyword advertising has proved to be an effective tool for getting traffic to your website but what measures have you taken on the organic side? Do you plant links across a plethora of websites to get picked up by Google Crawlers?
High quality content will attract some links, but if you actively seek out links from other quality sites you can speed things up.
Thanks for sharing.
George, those are definitely numbers worth mentioning. Out of curiosity, where are you getting these numbers from? Are these numbers from a 3rd party source or are they from your own in house research?
George, you claim that “78.3% Of Research Into New Small-Cap Investments Comes From The Web”. My question to you is as follows: What are remaining 21.7% doing? Going to the library? lol
Great survey results George, thanks for posting. Can you share any details of the survey such as sample size, who was surveyed etc? Thanks so much.
Darrell