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Wednesday, March 28, 2012

One such market that benefitted from the internet is the stock market. Prices before were quoted through phoned-in bids and offers creating delays, which some took advantage of and used to profit enormously. Now, as we quote in real-time, trades were done instantly. The competitive structure of the markets are now efficient, and captures the desires of the participants in real-time. As I buy, a seller usually is ready to take my bid.

The internet somehow allowed us to setforth our desires in a dynamic market, may it to sell or buy stocks or any other good for exchange, to profit by quick negotiations. The technology gave the ability to transfer and communicate data so timely for decisions to be made. The effects are evident in how it strengthened the market system allowing each participant full access to price and trends, have equal access to technology and know-how, and has become open to all kinds of external factors through ease of accessibility by many stakeholders, all towards the completion of an improve market - that borders to being perfect.

The Internet became a tool, in this case, to create competition, dismantling a monopsony of somehow well funded brokers against the small traders, who usually before this phenomenon was available, gets beaten by the hugeness of the funds and the information only available to these juggernauts. Now, we can see the market trends as the big boys do, and receive information almost the same time as the insiders.

How it has impacted into some case of "leveling the playing field" is one major change the internet has done to our economic lives.

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