Market Manipulation and a Case for the Further Regulation of Social Media and the Finance Industry

This paper intends to investigate the potential of market manipulation in under regulated markets that does not exist in regulated ones. I do this by looking at the previous literature discovered on ambiguity aversion, and how it is linked to the increase of social media’s effect on price changes in markets. I investigate two different markets that are regulated and unregulated. These markets are the US stock exchange and the cryptocurrency market. I then see what the effect that twitter has on the two over the same periods of time using the most up-to-date models. Finally, I recommend policy changes that will help prevent market manipulation of under regulated markets