Facebook recently announced its decision to rebrand itself as Meta, a name that signifies its CEO Mark Zuckerberg’s growing ambition to establish a metaverse. The company’s formerly eponymous social media platform will continue to be called Facebook. The parent company will be known as Meta Platforms Inc from December, with the company’s ticker symbol changed to MVRS.

But this change has led to a sudden increase in trade for a Canadian materials company. The Nova Scotia-based company saw its shares gain 26% after the announcement and trading volume increased to 12 million shares, double the average, CBC reported. The reason behind the jump is the company name and ticker; Meta-materials and MMAT.

Meta Materials was the latest beneficiary of an all-too-common mistake. Investors jumped on shares of Meta Materials in the mistaken belief that it was the shares of Meta Platforms Inc. The company manufactures materials for different industries, including aerospace and consumer electronics.

Small companies often end up profiting in the short term when traders mistakenly buy their stocks, although stocks often experience a sharp drop in price when investors realize their mistakes. And it’s not just retail investors who make the mistake, hedge fund managers, portfolio managers and many others are just as prone to human error as anyone else.

A 2019 paper by researchers working at Rutgers University found more than 250 instances of company stock price fluctuations that occurred as a result of various events at companies with names or stock symbols. similar.

“Something happens in big business, then there will be a reaction in small business

(Edited by : Shoma Bhattacharjee)

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