Question

How is technology changing the financial markets? What impact does this have on institutions and individuals?

Answer 1

Technology is having an important role to play in financial market and it is impacting the transaction to the large extent by cutting down the cost of transaction and improving the efficiency by cutting down the cost of transaction along with the time of transaction on part of both the companies and individual and it is leading to a higher number of market participants in the financial Markets and financial system so there is a high degree of transparency and there is also a high degree of security, so there is a very high level of dependence of today's financial system on technology.

This is having an impact on institutions and individual to a large extent because they are getting more attached towards financial markets as their financial markets are becoming more transparent and more efficient along with cost efficient and time savings, so they are trying to maximize their rate of return by quick entry and exit and it can be seen that individuals are getting into stock markets and there has been a surge after coronavirus crisis and it can also be seen that the markets are witnessing a huge inflow of equity fundings and the banking systems are also witnessing a large number of borrowing from various companies and it is also meaning that these institutions are also having a large role to play in maintaining the fair and transparent nature of the market place in order to ensure the protection of interest of stakeholders so finance is utmost important in today's Financial markets.