Technology And The Stock Market Essay Research

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Technology And The Stock Market Essay, Research Paper The purpose of this research paper is to prove that technology has been good for the stock market. Thanks to technology, there are now more traders than ever because of the ease of trading online with firms such as Auditrade and Ameritrade. There are also more stocks that are doing well because they are in the technology field. The New York Stock Exchange and NASDAQ have both benefitted from the recent technological movement. The NYSE says they are dedicated to maintaining the most efficient and technologically advanced marketplace in the world. The key to that leadership has been the state-of-the-art technology and systems development. Technology serves to support and enhance the human judgement at point-of-sale. NASDAQ,

the world s first fully electronic stock market, started trading on February 8th, 1971. Today, it is the fastest growing stock market in the United States. It alo ranks second among the world s securities in terms of dollar value. By constantly evolving to meet the changing needs of investors and public companies, NASDAQ has achieved more than almost any other market, in a shorter period of time. Technology has also helped investors buy stocks in other markets. Markets used to open at standard local times. This would cause an American trader to sleep through the majority of a Japanese trading day. With more online and afterhours trading, investors have more access to markets so that American traders can still trade Japanese stocks. This is also helped by an expansion of most

market times. Afterhours trading is available from most online trading firms. For investing specialists, technology provides operational capability for handling more stocks and greatly increased volumes of trading. Specialists can follow additional sources of market information, and multiple trading and post-trade functions, all on one screen at work or at home. They are also given interfaces to upstairs risk-management systems. They also have flexiblity to rearrange their physical workspaces, terminals and functional activities. Floor brokers are helped with supports for an industry-wide effort to compare buy/sell contracts for accuracy shortly after the trade. They are also given flexibility in establishing working relationships using the new wireless voice headsets and

hand-held data terminals. The ability to provide new and enhanced information services to their trading desks and institutional customers is provided. They have a comprehensive order-management system, that systematizes and tracks all outstanding orders. Technology gives a market s member organizations flexibility in determining how to staff their trading floor operations as well as flexiblity in using that market s provided systems, networks and terminals or interfacing their own technology. They are given assurance that their market will have the systems capacity and trading floor operations to handle daily trading and in billions of shares. Member organizations get faster order handling and associated reports to their customers, along with speedier and enhanced market

information. They also have a regulatory environment, which assures member organiztions that their customers, large and small, can trade with confidence. Technology also allows lower costs, despite increasing volumes and enhanced products. Companies listed on the NYSE are provided with an electronic link so they may analyze daily trading in their stock, and compare market performance during various time periods. The technology also supports the visibility of operations and information, and regulated auction-market procedures, which listed companies expect from their primary market in support of their capital-raising activities and their shareholder services. Institutions get enhanced information flow from the trading floor, using new wireless technologies, as to pre-opening