In this digital era, we are surrounded by technology and innovations of modern days where technology hugely impacting social lives, private and government sectors. But, still, technology hasn’t introduced to other segments or people who are related to it. One good example is the stock market. Many investors and traders are unaware of the benefits of the technology used. If you don’t remember, the success of London Stock Exchange in terms of strong economy is the result of rising technology which made it the third profitable stock exchange in the world.
See, this is the best example to describe the positive influence of technology on a century-old company which is meeting the business challenges of the modern era.
With the surge of dot-com companies in the 90s changed the perspective of connectivity. Lately, many websites started to make initial public offerings. Since then it becomes easy to interact with other share market companies and investors.
But, how it will help in getting better market returns?
Actually, that’s why we are here today. We are about to discuss the role of technology in the stock market and what impact it has on the stock market?
Benefits of Technology in Stock Market
Technology is no different from any of stock market tips and can be used as an asset while investing in stock market and managing portfolios.
- Access to Information
According to the Securities and Exchange Board of India (SEBI), investors have unparallel access to information of companies, capital, debt, and stocks etc. All thanks to technology, now investors can do research on the company’s stock prices, earnings reports, and analyze on investment basis. In doing so, you don’t need to follow corporate announcements, stock news, and results on televisions, instead you can avail the benefits of apps and websites ready to provide the detailed information unbiased to investors.
On top of that, you can also get the access to more comprehensive data through several websites which are assisting individual investors in order to analyze the cash flow, growth patterns, and stock performances. Even you can consult with SEBI registered stock market analysts and financial advisors on these advisory platforms to manage your portfolio and make informed decisions.
It all becomes possible because of technology which is spreading in the stock market segment in the form of apps and websites. Long story short, getting access to crucial company info and its stocks become so simple.
- Electronic Trading
As we all know, information technology is all about data and calculation of numbers, so is stock trading. In 1986, LSE changed the trading from face-to-face to computer which significantly increased the efficiency and organization. Nowadays, a high-speed computer used in stock trading can break a deal in a nanosecond which is humanly impossible.
The best thing about electronic trading is, it has turned down the wall between discount traders and larger investors and traditional traders who once had the advantage of executing trades in the earlier days.
This high-frequency trading changed the trend of buying and selling stocks within the same day and created “day trading” for individuals. Now, many traders can trade hundreds and thousands of shares in few moments.
You know how it became possible?
Final Thoughts: –
It is playing a major role in the stock market and other sectors in helping people to achieve excellence in their respective segments. And we can confidently say that it will evolve and become better than yesterday.
Technology is the undeniable truth of stock market which has improved a lot and offer facilities to investors which we couldn’t even dream of.
Note: All information & data provided in this article is for the educational purpose as well as to give general information on the finance & economy, not to provide any professional advice or service. Views & opinions are not biased against the company and do not affect any official policy or any other agency, an organization within the content.