Forget Due Diligence, Just See If You Can Pronounce It

from the what-passes-for-investing-these-days dept

It does often seem like people buy and sell stocks for reasons that have little to do with the fundamentals of what they're investing in -- but even with that in mind it's a bit surprising to hear that the ease of pronouncing the company's name or stock symbol can often lead to more investment in their stock. Basically, the report suggests, there's a psychological impact where people feel more comfortable buying stock when they can easily state the name. The impact is most noticeable right after an IPO -- which often seems to be the time when the least amount of rationality is used in making investment decisions. Perhaps the reason Vonage had such a weak IPO was that some people were confused over whether it was pronounced "voh-nage" or "vah-nage." Now we just need someone to start a mutual or hedge fund based on this tidbit of info.
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  • identicon
    The Ghost in the Machine, 30 May 2006 @ 7:39pm

    Damn physcological warfare.

    link to this | view in chronology ]

  • identicon
    zachary pond, 30 May 2006 @ 7:45pm

    after all of their marketing efforts, how could anyone possibly not know how to say the name?

    link to this | view in chronology ]

  • identicon
    David Neawedde, 30 May 2006 @ 8:03pm

    Very interesting. Yeah VOnage's IPO wasn't so hot...

    link to this | view in chronology ]

  • identicon
    William C Bonner, 30 May 2006 @ 8:14pm

    Vonage, said like phone-age

    I learned the pronunciation early on from a head of marketing at the company at a trade show with the o being a long o. sometime after that, the mass marketing began, and they went a different direction.

    I've seen this sort of thing happen with companies in the past, Nokia being the most noticable. (When I first did dealings with the company, I was working with nokia employees in switzerland, who were coming down to visit from finland, so I believe that they knew how to pronounce it)

    Nokia was pronounced nok-ia with a long o. After I came back to the US in the mid 90s, the US presence was being referred to as no-kia.

    the spelling all looks the same, but the emphasis going from the front to the back, and where the k was connected has always made the second way I learned seem to jump out as me as wrong.

    link to this | view in chronology ]

  • identicon
    Frank Burkenstein, 30 May 2006 @ 8:14pm

    ownage

    I thought the 'v' was silent.

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 30 May 2006 @ 9:08pm

    Sure, companies have control over their name but who decides what the stock symbol will be? Do they control that as well?

    link to this | view in chronology ]

  • identicon
    hunter, 30 May 2006 @ 9:56pm

    same thing with ordering wine in restaurants. Most people afraid to look stupid in front of friends or waiters.

    link to this | view in chronology ]

  • identicon
    Alex Nassour, 30 May 2006 @ 11:10pm

    Pronounce that.

    Its funny how sub-standard pre-college education is in the US...

    link to this | view in chronology ]

    • identicon
      SPR, 31 May 2006 @ 8:06am

      Re: Pronounce that.

      It's funny how sub-standard post-college education is in the US.

      link to this | view in chronology ]

      • identicon
        College boy, 31 May 2006 @ 2:05pm

        Re: Re: Pronounce that.

        I find it confusing how you could say American college, and post college, education is substandard. The fact is, more people come to the U.S. for education than any other country in the world.

        link to this | view in chronology ]

    • identicon
      Smart Alec, 31 May 2006 @ 8:07am

      Re: Pronounce that.

      > Its funny how sub-standard pre-college education is in the US...

      It's funny how substandard college education is in the U.S.

      Speaking of which... It's "it's" not "its" and the word "substandard" is not spelled with a hyphen.

      link to this | view in chronology ]

      • identicon
        SPR, 31 May 2006 @ 9:38am

        Re: Re: Pronounce that.

        You really know how to end discussion on a subject, don't you?

        link to this | view in chronology ]

  • identicon
    Ben Robinson, 31 May 2006 @ 12:54am

    UK Vonage TV Ads

    On the UK TV adds i have seen Vonage is pronounced "vonnij", which is not how i have always probounced it.

    link to this | view in chronology ]

  • identicon
    Republican Gun, 31 May 2006 @ 5:04am

    Pownage

    Too bad Vonage didn't Pownage.

    link to this | view in chronology ]

  • identicon
    cjay, 31 May 2006 @ 7:20am

    Fromage?

    I always pronounced it with the emphasis on the second syllable and a slight french flair voh- nazh... but then I called tech support and the automated voice corrected me...

    link to this | view in chronology ]

  • identicon
    SPR, 31 May 2006 @ 7:54am

    Pronounce it?

    Does that mean investors would have a problem with a hedge fund called "Disfunctional" or "Dysfunctional"?

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 31 May 2006 @ 8:04am

    RE: Pronounce it?

    > Does that mean investors would have a problem with a hedge fund called "Disfunctional" or "Dysfunctional"?

    Yes, it does. However, they would readily buy stock from a company named "Worthless".

    link to this | view in chronology ]


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