// Posted by Kaitlyn on 06/04/2015 (11:02 AM)
I recently got involved with stocks and bonds so this week’s reading was interesting to me. I always envisioned people standing around frantically waiting for the prices of stock to change so they could buy or sell accordingly. I… Read more
I recently got involved with stocks and bonds so this week’s reading was interesting to me. I always envisioned people standing around frantically waiting for the prices of stock to change so they could buy or sell accordingly. I suppose I got this vision from watching movies about the stock exchange floors on Wall Street. It never occurred to me that with advancements in technology that this could be done on a computer.
According to the article “Raging Bulls” leading up to 1970 stock exchange was done by telegraphic stock tickers and telephone calls. The article “High Frequency Trading” states that investors had to call brokerage firms in order to make trades and the firms would then have to call to the stock exchange floor to actually make the trade happen. This was a very time consuming task. With the advancements in technology this has now changed to being done on the computer by algorithms. The article “Raging Bulls” states that this is a good thing because “computers never get bored so they will haggle more than the person would.”
The articles seemed to try to persuade me the stock market going digital was a good thing. One example from “Raging Bulls” is that this was a good thing because computers can make the trades happen a lot faster than humans could. Another example from “High Frequency Trading” was that computers are more reliable than people. Another example that I have found in my dealings with the stock market is now that they are on the computer I can find out the price of stock much faster. Some people still go to the newspaper to look at prices but it is a lot easier for me to just do a quick Internet search.
Although those example seem to be positive I still worry about hackers. If hackers can hack into our computers and steal information then couldn’t they mess with the stock market? I found my answer in this week’s reading of “Raging Bulls.” I read that hackers can get into the stock exchange and input algorithms that could mess up the whole stock market. This seems to make me wonder if going digital was worth it?