When discussing the consequences of a data breach for organizations, we usually consider three types of damage: financial, legal, and, somewhat more tenuously, reputational. But what about stock prices? One would assume that stock price—an indicator of a business’s overall health and investor confidence—would plummet after a breach, but is this really the case? Do Stock Prices Fall After Data Breaches? In short, yes, data breaches do negatively impact stock prices. But this statement oversimplifies the issue. For example, the impact of a data breach on stock price varies depending on the...
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