How Important is News Coverage?
News is essentially information about current happenings. This can be given through a variety of media: print, television, radio, postal services, wire services, or by the oral testimony of witnesses and experts on current events. News is often described as “hard news” or “breaking news.” In its most broad sense, news is any significant event that changes the course of human activity.
We have all heard the expressions, “All news is news,” “The news is what you don’t hear on the radio or television.” These expressions are true only in the selectivesense–that is, in some news reports will feature information that might not be significant to you personally, and you may miss it if you are awake when it is being discussed. More importantly, in everyday life, we seldom pay sufficient attention to the specific news stories that interest us. We usually react to news through the major media, but very seldom take the time to really analyze the information that is being presented. Only when a disaster or big event occurs do we feel compelled to ask ourselves, “What was this news about?”
A clear example of the value of news is the reporting of a new government policy or piece of legislation. When a new policy is announced, there is significant news coverage. Most news organizations carry at least one daily report on the subject. Even when there is no significant update, some news outlets provide continuing updates on the topic by posting “ticker posts,” which are simply short tidbits about what has happened with the subject over the past day or two. This type of news coverage is important to the general public and to the professionals who are studying the business world.
The need for up-to-date and accurate news is evident in virtually every industry. Take the advent of e-commerce. Virtually every company that sells products or provides services online has some form of Web site. The most successful businesses know how to use the Web to become prominent in the search engines, and they use news releases and blogging to keep their sites current and to allow the public to know what they are purchasing. Without strong business and market news, companies would not be able to stay ahead of the competition. As it stands today, most online retailers and manufacturers have at least some Web content – sometimes far more than any other traditional media outlets.
Another example of how important news coverage is to the business world is the current state of the economy. While the news coverage on the economy has been fairly good relative to other periods in history, business leaders understand that the general public does not fully understand how critical a role the economy plays in overall performance. Business news can be as timely and comprehensive as the latest jobs report. It can discuss the ramifications of a new tax bill or the impact of a natural disaster on a company’s production. But it can also discuss the factors that have led to a company’s current problems and how the issues can be resolved.
News can even impact the stock market. The extent to which an individual stocks’ performance is affected by news coverage is a difficult question to answer. News related to the economy and newscasts on business may have little effect on a stock’s price, but it can affect the amount an investor will pay for a stock. The best way to determine how news affects your investments is to do your research and only buy and sell news that you understand.