{"id":189,"date":"2020-01-23T12:02:04","date_gmt":"2020-01-23T12:02:04","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=189"},"modified":"2020-01-23T12:02:30","modified_gmt":"2020-01-23T12:02:30","slug":"what-role-does-technology-play-in-the-stock-market","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/what-role-does-technology-play-in-the-stock-market\/","title":{"rendered":"What Role does Technology play in the Stock Market?"},"content":{"rendered":"
<\/div>\n

If you were to\nlook around, you cannot discount the role of technology in modern-day life.\nWhether it’s about socializing, commuting, spending, learning or anything else,\ntechnology has played a major role all around. We are at that stage where\nenvisioning life without technology is a foregone conclusion. <\/p>\n\n\n\n

The influence of\ntechnology has grown over the years to such an extent that even the facets like\nan investment and stock market are getting a taste of it. And rightly so,\ntechnology has changed the face of how investing is done. We here look at how\ntechnology has changed the course of the stock market and the role played by\ntechnology in the stock market. Read along.<\/p>\n\n\n\n

The History of Stock Market- From floors\nto Computer Systems <\/strong><\/h2>\n\n\n\n

The word stock\nmarket and investment for years were synonymous with the image of people\nshouting out the buying and selling orders on the floor of the stock exchange.\nOnly when the telephone made a major breakthrough, that the use of technology\nwas first recorded. That led the way to the introduction of computers later on\nduring the \u201990s. And the rest as we say is history. <\/p>\n\n\n\n

When you compare\nthe same with the modern-day stock market, technology is at the very core of\nhow trading or investment is done. Everything revolving from orders to\ntransfers is done via electronic mode with the use of technology.  If you look back at the historical stance\nabout the stock market, you\u2019d see tremendous changes that occurred as a result\nof the introduction of the technology. For say, the leading stock market of\nIndia, i.e. NSE and BSE are fully electronically materialized exchange. <\/p>\n\n\n\n

The Role Played by Technology in Stock\nMarket <\/strong><\/h2>\n\n\n\n

The stock market\nand technology are truly an indispensable part of the present time. Technology\nhas fundamentally altered how the financial markets are conducted right from\nthe very first step of the formation of the stock to the trading of it. <\/p>\n\n\n\n

We here look at\nhow different technological advancements have impacted the stock market and\ntheir very role in the advancement of the investing scene. <\/p>\n\n\n\n

Artificial Intelligence (AI) beckons the New era of Investment <\/strong><\/h3>\n\n\n\n

AI is one of the hot topics when it comes to\ntechnology. It\u2019s something that has creates waves not only in the stock market\nbut everywhere it has been used for. Previously the stock market was merely\nlimited to human intelligence and decision-making capabilities. But with the\ninflux of AI, the horizons have widened plenty fold. <\/p>\n\n\n\n

With AI, investment decision-making capacities\ntend to increase as AI tends to provide better predictions and research than a\nhuman being. It helps to keep the emotional bias in check and seek rightful\ninvestment decisions. Add the factor like the speed of thought; AI has\nsubstantially changed the stock market over the years. Many of top investment\nplatforms and advisors are turning to AI to help gain a competitive edge. <\/p>\n\n\n\n

Smartphones \u2013 The Basis for Mobility <\/strong><\/h3>\n\n\n\n

When we talk of technology, smartphones are\none of the major things we all can relate too. Think of those yesteryear\u2019s past\nwhere corded phones were the common thing. That limited us to the confines of\nour home or office when it comes to communication. With the development of\nsmartphones, these days\u2019 people can simply know about the stock market and\ninvest on the go. You can make the investment decisions from your very\nfingertips sitting anywhere around the globe. Just browse through the apps or\nplatforms and off you go. <\/p>\n\n\n\n

In fact, these days investment has become as\neasy as online shopping and as safe as online banking due to the advancement of\ntechnology and smartphones. You can simply browse through the investment\nchoices, place your order as per your liking and oversee your portfolio with a\nsingle tap from your phone and make changes instantly as required for. That\u2019s a\nreal change from those early days of sitting at the desk yelling out the\nselling and buying orders and constantly having to check manually on the\ninvestment portfolio. <\/p>\n\n\n\n

Helping track Personal Finance in a Click <\/strong><\/h3>\n\n\n\n

There was an eerie time when personal finance\nmeant noting down each of the income and expenses either on a hardcopy ledger\nor feeding the data into the excel sheet. Thanks to technology these have\nbecome a thing of the past. If you look closely, personal finance apps and\nstock market are related to each other. A person tends to invest only when he\nhas savings or money to invest. That can only be calculated if there\u2019s\nvisibility about the finances of a person. <\/p>\n\n\n\n

Only if a person knows his financial stance\nproperly, shall he indulge in the stock market investment. That is where\npersonal finance apps come into play. They help to provide the overview and can\ntrack the expenses helping an individual to manage their budget properly. That\nhelps them set up their savings to invest in the stock market. <\/p>\n\n\n\n

Big Data – The New basis of Research \u00a0<\/strong><\/h3>\n\n\n\n

Big Data refers to the collection and analysis of a large database or datasets. It has been a major part of the modern-day functioning of the financial market. A stock market has millions of data points occurring every single day. With the use of big data, these can be substantially measured and analyzed accordingly as per the need. These data can be crucial for measuring the market sentiments, for predicting the future outcome and more. Big Data is a major basis for research in the stock market. And most of the top-level stock market advisors and investment platforms are using it. <\/p>\n\n\n\n

Use of Algorithm in Stock Market<\/strong><\/h3>\n\n\n\n

The algorithm does tend to share its base\nsomewhat with the AI but that\u2019s where the buck stops. Like AI, the algorithm is\nvital to modern-day stock trading. Such has been the nature that different\nalgorithm trading and investing modules have been developed over time.\nAlgorithms analyze the happenings around in the stock market and identify any\nliquid opportunities to help to make better and intelligent decisions when it\ncomes to investing. For this, a pre-defined set of instructions is placed on\nthe computer which then places the orders on behalf of the client and\ninvestors. It helps to make instant and accurate decisions all the time whilst\nreducing the possibility of human errors. <\/p>\n\n\n\n

Development of Next Generation Online Brokers <\/strong><\/h3>\n\n\n\n

The thing about the stock market is that we\nconduct the trades and investment via stock brokers. Previously when the\ntechnological advancement was not at its peak, we had to rely on the telephonic\nconversion or opt for manual outreach so that the deals can be made. Add to it\nthe plentiful of papers needed, it truly was a mess. These days, the next\ngeneration online brokers allow you to venture into the stock market via your\nphones and internet with just a single tap. <\/p>\n\n\n\n

You can conduct buying and selling of the\nstocks and keep stocks under the watch list for the future also from the\nplatform offered by these online brokers. \nThe investment platforms offered by different online brokers have added\nnew user-friendly interference to help entice the users and make it easy for\nthem. The days when investment words seemed to be full of mess and time\nconsuming are simply past the horizon due to the next generation online\nbrokers.  <\/p>\n\n\n\n

Robo Advisors Changing the Advisory Field <\/strong><\/h3>\n\n\n\n

When the technology was still in its novice stage, the stock advisory was limited to a manual one. People opened up advisory companies and the willing investors had to either meet in person or use telephonic conversation to get those advisory services. At that time, the only promotion for the advisory was word of mouth basis. But now with the technology at the forefront, you can seek advisory services over different platforms with ease. These days you can not only seek the advisory services but also see their past performance allowing you to choose the very best and trustworthy advisors from the market. <\/p>\n\n\n\n

But that doesn\u2019t stop there; the technology has reached such a stage where the word \u2018Robo Advisor\u2019 is a true reality. With Robo Advisors, you can seek financial planning and stock market advisory with little no none human interaction. These tend to offer you better advisory tips at a pretty minimal cost and is best known for the ability to provide you with the balance between your investment portfolio and harnessing tax benefits for you wherever applicable.\u00a0 Plenty of top advisory firms have developed the module of \u2018Robo Advisors\u2019 with them so as to provide the advisory services to people. <\/p>\n\n\n\n

Is Technology a Boon or a Bane for Stock Market? <\/strong><\/h2>\n\n\n\n

Technology has taken leaps and\nboundaries when it comes to the comparison with the scenes in the previous\ndecades and past. It truly has made an astounding change in the lives around\nus. And when it comes to the stock market, the chances are pretty visible.\nThose days of having to rely on manual intervention and needing to compile\npiles of papers to apply for stocks have been left behind due to the\nadvancement of technology. The options like investment on the go with\nsmartphones, use of Robo advisors for best investment tips, utilizing algorithm\nfor conducting trades that were a near impossible based on manual conduct,\nusing big data to help research and conduct large chunk of data are a few\nbenefits of how technology has been a boon for the stock market. <\/p>\n\n\n\n

On the other hand, we can also\nargue that with the advancement of technology, human interaction will be a lot\nless and that may affect the investment factors. Also with a breakout of news\nlike hacking and privacy concerns, your smartphone and personal finance apps\ncan be compromised thereby putting you at a risk for data and financial loss.\nThere are cases where Robo advisors aren\u2019t mere enough as personalized service\nor customized advisory is utmost required for. This also showcases the other\nside of the technology in the stock market. <\/p>\n\n\n\n

Taking into consideration,\ntechnology has more benefits than demerits. It has changed the way the stock\nmarket is conducted and perceived around. And more is yet to come in this\ntechnological advancement. <\/p>\n

<\/span> 9,592<\/span><\/div>
\n
\n \n <\/i>\n <\/a>\n 5 <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"

If you were to look around, you cannot discount the role of technology in modern-day life. Whether it’s about socializing, commuting, spending, learning or anything […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[35],"class_list":["post-189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","tag-technology-in-stock-market"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=189"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/189\/revisions"}],"predecessor-version":[{"id":191,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/189\/revisions\/191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/190"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}