Recent developments have led to electronic trading over the internet. Since capital derived from stock issue is dependent on shares outstanding and price per share, market volatility becomes a concern. When determining the volatility of a stock, the method of exchange is taken into consideration. When stocks move from the Nasdaq to other exchanges, their volatility declines. This supports the theory that differences in company characteristics do not determine volatility, but method of exchange does.
Trading volume appears to vary, while price per share remains stable.
Conclusions In conclusion, the advent of the electronic age benefits the corporate treasurer. Electronic data transmission and news dissemination assists in the exchange of information. This information is both highly accurate and comprehensive in nature. Decision-making is aided, transaction fees are reduced, efficiency is amplified, and lower operating costs are realized. Electronic technology is surely a benefit in this respect.