The Internet and the Share market

The Internet and Information Technology in contemporary Western society have played a pivotal role in advancing the pace of humanity, and assisting with lifestyle needs. However, it is clearly demonstrated with business investments such as the share market that the Internet has become a tool to assist the growth of investments and businesses as well. There are many ways in which the Internet has assisted in promoting the share market and also in educating people on how to invest their money wisely. For example, although many academics would argue that the Internet only provides information that is biased towards corporations that are listed on the share market, others would argue that the Internet is only biased to a limited extent as clients of the share market also have the power to write about their experiences and teach people about wise investing.

The Internet has provided access for companies such as Park Lane Information Technology to advertise their expertise on the Internet in order to promote the share market as well as increasing their public relations skills in the area. For example, by Park Lane Information being able to have the opportunity to advertise their services on the Internet, clients can be assisted in areas such as advertising and education about share market software available on the Internet, 24 hour client support, as well as providing an open information environment. Also, The Internet has played a pivotal role in the popularity of the share market. Citizens in Western developing nations are often encouraged by the Internet to take risks in the share market due to online advertising and extensive tutorials on websites showing potential customers how to utilize the share market effectively.

There are numerous incidences where the News that is broadcasted on the Internet will have an effect on the international share market. "The Asian Financial crisis that was started in Thailand in 1997 heavily affected the share market." (Wikipedia, 2005, p: 1). Many people argued that the Internet played an important role in the Asian Financial crisis because of the research that had enabled the entrepreneurs to keep track of the share market. For example, "Early May (1997) - Japan hints that it might raise interest rates to defend the yen. The threat never materializes, but it shifts the perceptions of global investors who begin to sell Southeast Asian currencies, and sets off a tumble both in currencies and local stock markets." (CRS Report, 1998 p: 2). Though the Internet is not directly responsible for the Asian Financial Crisis situation, it is responsible in some respect due to large media coverage as the Internet is a popular
medium for the media.

However, Internet also plays a very exciting role in terms of an entrepreneur being able to keep track of their own shares, which will enable them to play a vital role of making financial decisions. As taught by Adam Smith and his theories of supply and demand, nations that have been dominated by Western culture operate on a want and needs basis, which then affects the supply and demand curve. Hence, the Internet is a place where consumers can place their demands, in order to receive the supply. In relating this to the share market it can be viewed that fast and reliable information has provided a situation where shareholders are now able to make decisions in regards to their shares just by gaining access to the information based on Internet research, or information sent to them in an email by their representatives or share companies.

Finally, the information that is gained on the Internet can sometimes be biased and aimed at promoting the company's public relations and advertising, as opposed to assisting in the decision making process of the shareholders. However, the advantage of the Internet is that it is a free environment where consumers who are involved in the share market are also able to choose whether or not they will publish their experiences to the public. The future of the welfare of each society is dependent upon how well they adapt to globalization and cultural homogenization, hence the Internet can be used as a tool for achieving this goal for people who want to participate in a capitalist society.