Abstract

The purpose of this paper is to analyze the influence of FinTech innovations on stock market efficiency, and to advance the argument about how emergent financial technologies evolve the old investment, trading and risk management. Algorithmic exchange, blockchain, robo advisors, high frequency trading and similar FinTech developments have changed the way. Markets run for the better by increasing liquidity, lowering costs of transactions and improving price discovery. The research investigates the impact of these technologies on the efficiency of the stock markets by establishing how they enhance market transparency, minimize information asymmetry and enable trades to be executed more quickly. In addition to this, it also points to possible risks like market instability and regulation issues which are associated with the rapid growth of these technologies. It could be concluded that FinTech innovations are to a considerable extent expected to improve the efficiency of intermediation although due regard needs to be paid to the risks and regulation parameters.

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