The Different Ways The Internet Has Changed Investing

One reason the internet is what it is today, is that it has successfully changed the way things are done in so many areas

The internet is, no doubt, one of the best things that has happened to man and one of history’s most disruptive creations. While it has come with its own set of challenges, it is almost impossible to picture a world outside of it.

One reason the internet is what it is today, is that it has successfully changed the way things are done in so many areas. The processes of a myriad of industries like marketing/advertising, journalism, retail, and so on, have changed from their traditional ways as a result of the internet. And as you would probably already know, this change did not skip the investment world.

The internet has done so much in changing the game of investing across the world. The first and most apparent way is information availability. Back then, you needed to flip through hundreds of documents in a local library to see the historical information of companies.

In Nigeria, if you had written your school project when information like financial statements weren’t available on websites, then you no doubt had to visit the Securities and Exchange Commission as well as some research companies to retrieve financial information of companies.

You might have also needed to contact individual companies one by one, spending a lot of your time and energy. However, that is a story of the past today. Today, the Securities and Exchange Commission has this information readily available online for you to swiftly download within mere seconds.

Yochaa too has historical information of companies quoted on the Nigerian Stock Exchange on its “Explore” page. Information here might also refer to knowledge acquisition. Instead of paying advisors, you can now obtain daily investment tips to increase your knowledge of the art from platforms like Yochaa, Investopedia, The Balance, and so on.

On the flip side, information overload is now a bigger issue, noise-based speculation, and fake news are now even more available.

In terms of perception management, companies can also control the narrative and update news information on their own website and social media platforms. In the past, it would have been hard to know the details of the happenings of a company from a verified source unless you were signed up to receive its financial statements.

In terms of financial or investment analysis, brokers and other “experts” in the investment field could easily exploit investors who would need them to compute basic ratios and carry out a number of analysis in order to help them understand the company’s story and position.

Investors would have needed to pay for these services amongst others. Now, the data is visible across many financial platforms including this.

Still in terms of the financial implication to investors, the internet has generally cause a reduction in the fees investors pay. The reason is that thanks to the internet, brokers are now more readily available.

This has significantly brought down the cost of obtaining the services of one. Online banking also promises even more speed with just one click. In fact, because individual investors can now invest using online trading platforms, the need for many brokers have seen even more of a decline.

Just like using landlines and mobile phones were highly expensive before and are now relatively cheap; brokerage services are now relatively affordable to secure. For the broker, he or she now has access to a wider pool of clients from all over the world.

In terms of security and transparency, the internet has played a role as well. On one hand, it has helped individuals directly contact reliable sources through their official website platforms and so on.

Some investment companies now have, on their websites, secured online investment platforms that protect the investor. Investors can now monitor their investments online without issues.

Investors who used to be swindled can now track their investments conveniently by themselves using just their smartphones or computers. It has, however, also led to what we now call cyber crime.

The internet has provided a tool that all investors can leverage with ease. Use it well and your investment experience would come with a good level of ease.

Written by Lawretta Egba.