Stock message boards and chat rooms have caught the attention of the financial press, regulators and investor relations professionals. While much of this attention has focused on anecdotes about particular companies, the real story is the medium itself. Message boards represent a revolution in the way information can spread to investors. My research at the University of Michigan on the message board revolution has several important implications for investor relations professionals. These implications are conveniently captured in three quotes from comedian Steven Wright:
   "If all those psychics know the winning lottery numbers, why are they all still working?"
   A key concern about stock message boards is the underlying motives of individuals who post messages about a company. In particular, why would an investor publicly disseminate valuable information, free of charge, to other investors on the Web? One possibility is that the investor has taken a short position in a company and hopes to profit from spreading negative information about that company. My research provides evidence consistent with this claim. In fact, message posting volume is strongly related to investors' short-sale positions in a company's stock.
   "If a person with multiple personalities threatens suicide, is that considered a hostage situation?"
   My research also shows that a few individuals dominate the posting activity on stock message boards. For example, ten individuals account for approximately one half of all messages posted on the Ford Motor Company discussion board at The Motley Fool investor site. This concentrated posting activity is common on many stock message boards. Anecdotal evidence also suggests that some of these "individuals" are, in fact, the same person operating under multiple on-line personas! Unfortunately, these anonymous individuals can disproportionately influence investors' perceptions of your company. Investor relations professionals should become familiar with these select purveyors of public opinion.
   "One time a cop pulled me over for running a stop sign. He said, 'Didn't you see the stop sign?' I said, 'Yeah, but I don't believe everything I read.'"
   The investing public should certainly heed SEC Chairman Arthur Levitt's advice to be wary of information they read on stock message boards on the Web. On the other hand, managers and investor relations professionals cannot afford to ignore the signs of activity on stock message boards. My research indicates that message posting activity is fundamentally related to a company's information environment. Therefore, message boards can be viewed as a medium to "monitor the pulse" of the investing public. A large increase in message posting volume about a company may be a sign of investor discontent and signal the need to fill the information gap. While there are many messages on this new medium, the medium is definitely the message!