Technology has impacted virtually every part of daily life. The general effect of technological impact has increased productivity and efficiency. Electronic devices such as smartphones and integrated home alarm systems bring peace of mind and provide a sense of safety. Even the stock market and investment opportunities have been impacted by the use of new technologies. Here are some of the major ways technology has shifted the stock market.
The stock market has only been readily available to the general public for about the last decade. Prior to that, individual investors depended totally on a registered representative for their trading needs. Personal education and development was not a primary focus for most people who used wealth management firms.
Technology has changed the way people approach and interact with the stock market. Investors have been empowered through technology and the new trading platforms that have emerged through technological advancements. Online publications and investment reports contain a wealth of information available to anyone who makes time to read them. Individual investors do not have to show up on Wall Street or nervously watch paper ticker tapes with their advisors. Today investing is made easy through:
- Smartphone Apps
- Automatic Payroll Deduction
- Pre-Scheduled Trades
- Personalized Market Alerts
Technology has shifted the market by introducing new investment vehicles. In addition, technology stocks have infiltrated the market in a variety of different sectors. Historically, stocks focused on technology companies or processes have been considered very high risk. As with any specialty funds or individual stocks, technology companies offered the highest potential for growth. The potential for growth comes with a corresponding potential for loss.
Many investors who shied away from investing in science and technology funds in the past are now willing to give these options a second look. Since public information is now available at the touch of a button, investors can self-educate before making an investment decision. Likewise, investors can view information like press releases, earnings reports, and other relevant information in real-time online.
There is no doubt that the stock market has benefited from technology. Investors have access to multiple markets and even foreign currency markets and cryptocurrency. The end result is increased trading activity and, potentially, long term trading stability.