Tatiana NeumeyerMs. SharpEnglish 2, Period 222 December 2017Technology has Changed the Stock Market Did you know that the best day to invest in the stock market is wednesday? “The stock market today can be traced back to Amsterdam in 1602, when the Dutch became the world’s first “publicly traded” company” (Jeff Desjardins). “Over 4 centuries later, the stock market has not changed from the earliest exchange found in Amsterdam. Modern computing and the internet have sped up transactions so they can be accomplished in a thousands of a second, but the spine of the market has not changed at all”(Desjardins). While newer stock transfer technology is used today, the same model from years ago remain which can create multiple industry problems. Technology improves the stock market, by online trading and the buy-and-sell cycle for investors.
Technology speeds up the process of trading world wide in the stock market.¨ Investors in the stock market, wether through individual shares or funds, face the threat of major losses and disruption from hackers, according to a number of Wall Street investors” (Wall Street Journal). There has only been one attempt but they never seceded the SEC ( Securities and Exchange Commision) stopped them before they could do anything. ¨Sixteen microseconds.
That is how long it takes for a share trade to be completed using a system built by Algo Technologies, a US-based trading technology company¨ (Jeremy Grant). Sixteen microseconds is equal to 1.6 seconds that is crazy fast to have traded your shares across the world. The amount of time it takes to transfer information across the world equals to the average person blinking twice. Speed plays an important role in the stock market because the stock market can increase or decrease in the matter of hours, so the faster you can trade the more you will earn or the less you will lose.
¨ The NYSE ensures that its trading floor is on television every day as much to matian the visibility of its brand in the minds of investors as anything else” (NYSE). Television may not be new technology but it is still technology compared to how the employees at the NYSE used to be. They used to have to use a book and write down how much did you want to invest and your other information and now it is all done on computers and shown on TV to keep the world informed on the stock and if they are inclining or declining, compared to the old days when you had to read the newspaper to see if what you invested in is doing good or bad. Technology improves the stock market, with online trading and the buy-and-sell cycle for investors. The buy-and-sell cycle for your everyday investors. ¨ If your wages are stagnated and you’re not invited in the market, you’re left out” (Detrick).
Basically what he is saying is that if your wages have stopped flowing then you will not be able to invest online they will lock you out of the system while the stock market keeps rising. The big investors want to keep the rich rich and the poor poor, and they are using technology to take out the poor and enrich the rich. “In fact, by the time the federal reserve officially announce a recession has begun, it could be a good time to get more aggressive and start putting more of your investment dollars back into stocks” (Kent Thune). The sock Market is a game, it’s like gambling there are certain strategies you can use that will up your percentage of winning. You can review what you investing in, also sharing common stocks with a company will give you have a better chance at succeeding. ¨ The stock market plays a very important role in the economy. It provides liquidity and is a good source of funds.
¨ (Juan Mendoza). The stock market was made to help not hurt, and technology as brought it to a whole other level. Technology has improved the the stock market and made it an international company. Technology improves the stock market, with online trading and the buy-and-sell cycle for investors.
There is always a superior and a unlucky day for the stock market. Trade in the West was sketchy and expensive. The best day of the week for stocks is Wednesday because a study in the Journal of “Economics and Finance titled The Day of the Week Effect on Stock Market Volatility examined 25 years worth of performance data”.
6,450 of days observed in the study and 1,289 days were Wednesdays. The average return on those Wednesdays was nearly .032%” (Wall Street Journal).”There is no definite solution to completely fix a meltdown or crash in the system but there is a way to prevent it by taxing stocks so that move farther away from their equality values more than they already do” (Wall Street Journal). Technology has brought the stock market to a whole new level, and with a few speed bumps along the way technology has given investors an efficient way to research and purchase stocks Worldwide.