According to a New Jersey Institute of Technology online MBA study, the Internet had a substantial impact on the stock market’s revolutionary growth in the last thirty-five years. The DOW Jones reached a high of 2,791 in 1980. Throughout the next ten years from 1980 to 1990, the market took off and hasn’t looked back since. After the Internet was made public to the United States in the 1980s, traders were able to receive better access to company information which in return helped them make faster, smarter and strategic investment decisions.
Electronic trading rose to popularity in 1992 which allowed traders to sprout up in different regions of the America and not only on Wall Street. Because of online trading, floor traders at the New York Stock Exchange reduced from 5,500 in the 1980s to around 400 in 2015. Today, there is a whole new face of stock market trading with mobile investment, algorithmic and high-frequency trading coming into play. Over 64 percent of investors believe they need to have the ability to invest on mobile devices and 51 percent plan to increase their smartphone usage for investment. Wall Street traders with the most expertise use high-frequency trading to trade at the fastest execution speeds possible which makes them more profitable than any traders in the market. The future of the online trading is undetermined with the potential for cyber attacks continuing to rise at unprecedented rates. In a recent stock market and banking survey, experts found that a major U.S. bank suffers from an attack every 34 seconds.
If you’re interested in learning more about how the Internet Age has reshaped the trading and investment landscape, learn more by reviewing this infographic created by New Jersey Institute of Technology’s Online MBA program.
About the Author:
Andrew Deen has been a consultant for startups in almost every industry from retail to medical devices and everything in between. He implements lean methodology and currently writing a book about scaling.