Bitcoin Stocks: It's the Name That Counts
As the tech sector boomed during the late 1990s, shrewd companies quickly figured out how to send their share prices soaring. If they renamed their company to something that ended with ".com," investors would pay a higher price for its shares simply on the basis of its name.
Amazingly, it worked time and time again. In just one example, a company by the name of Computer Literacy Inc. changed its name to FatBrain.com in March 1999. On the day of the announcement, shares ended the session 36% higher than where they opened.
Was Computer Literacy really worth 36% more as FatBrain.com? Of course not, but by simply changing its name, the online bookseller attracted a new cohort of investors who were conditioned to buy any company with ".com" in its corporate identity.
Source: Fool.com
