Social Media, Investment Knowledge, and Meme Stock Trading

Abstract

This study investigates the influence of social media and investment knowledge on meme stock trading, using data from the 2021 National Financial Capability Study. It examines the relationships among social media usage, investor decisions, and the role of investment knowledge. The study emphasizes the significant impact of social media use on investor behavior within the meme stock phenomenon. No association was found between investment knowledge and meme stock trading decisions. However, the interaction of investment knowledge and the use of social media was significantly negative, illustrating that the influence of social media use on meme stock trading weakens when investors have greater investment knowledge.

Keywords:

• Investment knowledge
• Meme stocks
• Moderating role
• Social cognitive theory
• Social media

Disclosure statement

No potential conflict of interest was reported by the author(s).