And investors by the millions are trading stocks from their home computers, laptops and cell phones, a trend expected to only increase in the 21st century. In this decade, watching the stock market evolved from an almost playful diversion of the well-heeled to an important daily ritual for millions of ordinary Americans. Today, more than half of U.S. households own stocks. Securities industry experts predict that the next generations of investors will be even more attracted to the stock market as they try to gain control over their financial lives. By 2010, about half of daily stock trades will be placed through online brokerage firms, up from one-seventh of today's transactions, analysts predict.
Some online firms say the days of the traditional stockbroker are over.
Still, most industry experts say there will always be a role for traditional brokerage services. That will be especially true whenever a bear market arrives. Just as the roles of brokers and investors are changing, so are the roles of the New York Stock Exchange and Nasdaq stock market. Within 20 years, virtually all stock trades will be executed electronically. In other words, the so-called open outcry system used by the NYSE will disappear.