How the Internet Changed the Course Of Trading

The stock market originally started in Belgium in 1531. Money lenders and “middlemen” would meet at Belgium from all over the world to deal with business, government, and individual debt issues. There were no real stocks in the 1500s. In place of stocks, they transacted In promissory notes and bonds.

There were often partnerships that made income and calculations just like stocks today do, but there was no official share that could be bought or sold. Nowadays, the story has changed.

There are different instruments that a stock market uses, each of them equally and diversely efficient. Thus, I would talk about different ways the internet has made this possible below.

Physical stocks are now electronic

Back in the day, stocks could only be traded on actual stock certificates. This made it quite a back and forth event when a share is about to be bought or sold.

The electronic platforms make sure stocks can be done at a much, much faster rate. This would consequently mean that more stock purchases are processed, leading to higher revenue.

Effective Communication

Can you imagine how stressful it would have been to go to individual firms asking for their stock price? Just imagine if a deal isn’t reached at the end of the day and you end up wasting your time, energy, and resources. Making the stock exchange digital has absolves this issue.

Firms are now able to display all the information on their stocks, as well as income statements, to allow investors easily access information before making a decision to invest. Announcements and other information can also be swiftly sent to investors at little charge. This is a very important factor in the growth of the stock market.

Creation of New jobs

Due to many more transactions and transaction rates going higher everyday, lower commission rates, and innovative technology to improve the stock market, many job opportunities opened up for the maintenance of Exchange servers, buying and selling of stocks, and so on. Day trading was also invented because of fast transaction rates.

Advancement Of Dotcom companies

Dotcom companies like Microsoft and Facebook have contributed massively to the growth of the stock exchange market. When companies like Microsoft, Apple, Cisco, etc started out, they became huge successes.

They had a lot of investors, got a lot of sales, and had a gigantic profit within a decade of launch. This of course would reflect on the stock market positively. Other people began investing due to brand popularity and increasing value. These dotcom companies also improved communication to an extent, giving people access to information.

Final Words

The Internet has influenced the stock market in a very positive way and judging by the current statistics, the connection between the two seem to be as strong as ever.

There are different stock markets, each with their own valuations and sizes. The total market capitalization of equity backed securities in the world went up from $2.5 trillion in 1980 to $68.65 trillion by the end of 2018.

People tend to doubt the importance of the internet, some even paint the internet as something evil and unnecessary. There are facts, including the connection between the stock market and the internet, that prove otherwise.

The internet has become so essential for growth and development. The sooner everyone realizes this, the better.