The Name Game

Riepe, Mark W.
August 2006
Journal of Financial Planning;Aug2006, Vol. 19 Issue 8, p36
Academic Journal
The article focuses on the fact that many investors make decisions on whether to buy stock merely on the firm's name. The market effect of companies adding ".com" or ".net" to the end of their company name is discussed, as well as taking off these suffixes after the collapse of the Internet stock bubble. Similar instances in the mutual fund arena are discussed, and it is suggested that even professionals can be fooled by company name changes that do not correspond to changes in business strategy.


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