THE IMPACT OF SOCIAL MEDIA ON STOCK MARKET: A COMPREHENSIVE REVIEW

Abstract

This review delves into the intricate connection between social media and stock market involvement, with focus on the impact of platforms such as Facebook, Twitter, and Instagram on investor conduct and market dynamics. The integration of social media into daily life has democratized the accessibility of financial information, altered investor behaviors, and impacted market fluctuations. This study aims to systematically analyze existing research, which may provide the present scenario and future scope of research in this field. 44 research studies have been reviewed and outlined based on year of the study, types of studies, and sample countries taken. Articles were included from 2010-2024. Key findings highlight that the number of studies on social media and stock market have substantially increased in the past few years. The conclusions drawn from this paper may provide information regarding the substantial influence of social media influencers on investment choices, the role of online platforms in shaping market sentiment, and the emergence of regulatory hurdles in the digital era. The implications stress the significance of investor education, regulatory adjustments, and ongoing research to navigate the evolving landscape of social media-induced stock market participation. This study can be further enhanced by including other classifications such as methodology, tools, and sources of the studies.