93-143). The basic functions performed by investment banks are not likely to change as a consequence of the application of computer technology to the stock market. How and when these functions are performed, however, may well change. As an example, it has been speculated that success in the after-hours trading experiment may lead to 24-hour trading on the New York Stock Exchange. The growth of program trading, together with the development of new trading decision models, is also projected (Ruiz, 1991, p. 43). At the level of the individual investor, many people are already using personal computers to both monitor trading activity on the stock market and to buy stocks (Schlenden, 1989, p. 38). It is probable that the use of computers by individual investors to participate in the stock market will increase over the coming 10 years. In London, the raucous floor trading activity associated with stock market operations has largely disappeared. Almost all London trading now occurs in relatively quiet offices far removed from the stock exchange, where the activity is conducted by traders sitting at computer terminals. Over the coming 10 years, a similar transformation will likely occur in American stock exchanges (Welles, 1990, p. 74).
An increasing number of investors--from all countries--are focusing on global markets (Glasgall, Holyoke, Rossant, and Javetski, 1993, pp. 120-126). As investment horizons broaden, the assessment of financial markets must be transformed from a national to an international perspective.
one major development over the past year with respect to the equity stock market and the bond in the United States has been the shift of portfolio holdings out of the United States and into foreign markets (Out of America, 1993, p. 90). Over the past year, major investment houses have reduced the proportion of American holdings in their equity stock portfolios from an average of 50 percent to an average of 37 perc...
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