In the past few years, cybersecurity has become highly important to businesses and consumers. As the world has started to pay more attention to cyberattacks and data breaches, companies have seen a dip in their stock prices after reporting these incidents proving that cyberattacks do affect the stock of a company. The change of a stock price is not always drastic through and the price dip depends on the impact of the cyberattack. Cybersecurity expert, Alejandro Hernández decided to research this issue further after a company he was a part of experienced a software issue with many negative impacts. After researching organizations that had recently experienced cyberattacks or had privacy and misinformation concerns, he was able to report on some of his overall findings on the effects of stock prices.

Overall, he discovered that cyberattacks that had a larger impact on national security usually experience a greater hit to their stock price, but they usually recover after some time. After these larger attacks parent company stock prices can also be affected as well. In terms of recovery time, it greatly depends on how much data was lost and if it was highly confidential. Finally, it’s important to note that if a company reports a cyberattack it doesn’t mean that stock prices will drop, it all depends on the circumstances.

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