Technology And The Stock Market Essay

There are millions of ways to make money in the world. Every day millions of people invest their money in the New York Stock Exchange (NYSE). On average, there are five trillion dollars in stocks traded daily (Picardo).This is one of the reasons America has the largest economy in the world. The stock market creates jobs for thousands of people and has done nothing but show a steady increase since the day it opened (Knight). Wall Street symbolizes the way America’s economy is a free market. The stock market affects almost everybody, not only in America but all over the planet.

In the beginning, there was no real stock market. However stock exchanges did take place in smaller groups and corporations. This all took place during the 1700's where stocks were already around for a long time before that but it wasn't really popular in the United States. Stocks originally started as auctions where traders called out names of companies and the shares available. There was a auction that took place and the shares went to the highest bidders.

It can influence important decisions such as investment choices. People started to associate technology with successful business performance. “Over the past few decades, technology usage has grown significantly. Per the U.S. Census, 76% of households reported having a computer in 2011.” (The Leon Journal of Undergraduate Research in Communications).

This can be seen in financial service providers such as banks, stockbrokers and insurance companies cannot do further business today without having their client-server-based information’s via technology. Internet based technologies, marketing have become more interactive and real time.

Also, 14% of the financial transactions online are equity trades and Edward Jones is missing out on all the volumes through this channels. The case talks about the “self-directed” investors and the “validators” and Edward Jones is losing out on the business from this class of customers by not allowing on line trading.

The NYSE has had an immense effect on the United States. Since its creation it has been a major driving force behind the United States’ economy. It has affected both foreign and domestic exchange, our relations with corporations and other countries, and has led to a variety of job openings. Overall the NYSE has had sizable impact on the United States’ economy.

For the analysis of this report, we determined that Ameritrade was an online brokerage firm. Its competitors in this sphere were Charles Schwab, E-trade, Quick and Reilly, and Waterhouse Investor Services. Additionally, we did not use the stock price of E-trade in our analysis, as there were insufficient price data for E-trade to calculate risk accurately.

Technology has been helping the work force with productivity since the invention of the computer. One industry that it has been impacted greatly is the world of investing. Twenty-four hours a day and seven days a week, stocks can be traded through various online investing sites. Trading isn’t the only part of investing that is affected by technology. Public companies’ earnings reports can now be viewed by anyone with a computer.

The stock market is always fluctuating. While watching the stock market for the last three months I have noticed that it’s a continuous guessing game. One day your stock might gain several point then the very next it could drop. Luckily enough my stocks never dropped tremendously, the outcome of my stocks wasn’t as great as I would have hoped but I also didn’t lose any money. Each stock varied a little different than the other.

The stock that I have analyzed is Apple (AAPPL), which it falls under the technology sector and trades under the NASDAQ. This sector holds the biggest companies around the world. A lot of these companies are well known such as: Amazon, Google, LinkedIn, and etc. The technology sector is an undeniably investment opportunity for every investor around the world. Lets face it technology keeps improving and we have only seen the beginning of it. These companies, such as Apple, are associated with constant innovation and invention. Our modern economy relies upon the technology sector to improve quality, productivity, and profitability.

The NASDAQ today is one of the most popular traded stock indexes today. Many people that involve themselves in the financial system, use the NASDAQ as a model to see how well the market as a whole is doing. Another reason for using the NASDAQ is to see how much it can be impacted by events such as the financial crisis in 2008 or even 9/11. Knowing that these events have great influence on the market can help further inform those who involve themselves in the financial system, for down the road in life. Having a good sense how the market will react to certain events, and a well thought out plan that will not allow losses to amount to the extremes that they once did. Analyzing the NASDAQ Composite, can be a great reflection for how strong the U.S. economy

The New York Stock Exchange traces its origin back 200 years. Centuries of growth and innovation the NYSE remains the world's foremost securities marketplace. Over the years its commitment to investors has been unwavering and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. The NYSE has grown to become the global marketplace of today.

In light of this, it is possible for large financial services firms to invest in inhibiting the uptake of the IEX system as evidenced in their reluctance to use this service owing to its “slowness” compared to their own systems. For the untrained eye, the presumption to switch to the faster option would be correct since after all, fast is good in the world of computing, right? On the contrary, providing these firms with this allowance only curtails future attempts to regulate the market as HFT algorithms get better and more technologies appear to widen the speed gap. Additionally, it will also protect the status quo of the large firms dominating the industry at the peril of individual investors and smaller trading firms. One important question that arises is this; what risks does a monopoly in the financial trading industry impose on the future of economic markets? Considering that the markets evolved to their current states to support investor participation, their abstraction from the market in this proposed environment imperils the integrity of the financial industry as a fair trading

The future of NYSE is based on the advancement of competition and technology. NYSE’s Competition is Bats Global Markets and NASDAQ. Bats seamless IPO is what really contributes to its great success; it is something that NYSE should look out for in the future. Bats Global Markets’ investors sold 13.3 million shares of stock at $19 per share, on the high end of the $17 to $19 range talked. Bats is the second-largest stock-exchange operator in the U.S., after the NYSE. It holds a 21.1% share of the US equities market, ahead of NASDAQ’s 18.8%.

Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi.