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How Technology has Effected Trading in Finance By Darren Brown

Invention of computers. Easier record keeping and calculations. Pencil and Paper. Prices put on wall manually. All trades made on floor. Online Trading makes it’s debut. “Day Traders” enter the market. New Online Trading Industry (ETRADE, Charles Schwab, etc.). 1920’s. 1980’s.

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How Technology has Effected Trading in Finance By Darren Brown

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  1. Invention of computers. • Easier record keeping and calculations. • Pencil and Paper. • Prices put on wall manually. • All trades made on floor. • Online Trading makes it’s debut. • “Day Traders” enter the market. • New Online Trading Industry (ETRADE, Charles Schwab, etc.) 1920’s 1980’s How Technology has Effected Trading in Finance By Darren Brown 1900 2013 • Introduction of telephone. • Trades allowed to be called in. • Internet is created. • Stocks can be viewed online by trading professionals. 1950’s Late 1990’s NYSE Average Annual Trading Volume New York Stock Exchange • Positive correlation between the NYSE trading volume and DART’s of ETRADE and Charles Schwab. • Daily Average Revenue Trades for both ETRADE and Charles Schwab correlate with Nasdaq and S+P 500. • In 2000, all three graphs spike just prior to significant drop in 2001 (due to 9/11). • Steady increase from 2002 to 2008 until housing bubble burst. • ETRADE and Charles Schwab DART’s affected much less by the 2008 crisis than the Nasdaq and S+P 500 market indexes. 1920 1970 2013

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