Mark

This paper charts recent
developments in the sociology of financial markets; its starting point is the
treatment of the concept of information within three sociological orientations: the
social-structural approach, sociological neo-institutionalism and the newer social
studies of finance.
Already in the 1980s, the role of financial markets as fundamental institutions
of advanced societiesbecame apparent as sides of the Atlantic, as well as of an increased media presence

This coincided with, and was at least in part
fostered by, the growing use of computer technologies, which triggered substantial
changes in the organization of market transactions and in the dissemination of
financial information
This coincided with, and was at least in part fostered by, the growing use ofcomputer technologies, which triggered substantial changes in the organization of market transactions and in the dissemination of financial information. Processes of economic globalization were perceived by many as directly related to (and as partly caused by) the expansion of financial markets, which challenged the established understanding of the links between economic and political institutions.The perception of finance as being at the forefront of economic globalization triggered an increased interest on the part of social scientists other than economists (sociologists, social anthropologists, geographers) towards investigating the broader social impact, ties and organization of financial markets.

I present an analytical overview of the more recent sociological perspectives onfinancial markets,

to persuade readers that the multifaceted study of financial markets as webs of social interactions can contribute to a better understanding of their position and role in advanced societies

socialstructural approaches
neo-institutionalism
social studies of finance

The discussion is centred on how each approach conceptualizes information and links it to the idea of socialrelationship or interaction.
2. Markets as Networks and as Groups
not only as systems of exchange, but also as networks of social relationships

White’s innovation is that he integrates the notion of information into the treatment
of markets as networks of social relationships (White, 2002, p. 2). Market actors
(i.e. producers) continuously send signals to each other, signals that play a keyrole
in decision about products, pricing and quality.

White’s5 and Granovetter’s According to their research programmes, the sociologist’s task was to
investigate how networks of social relationships shape the dynamics of financial
transactions, and how they influence price, volume and volatility.

Wayne Baker’s article on the dynamics of the trading floor argued that traders did
notbehave like perfectly rational actors

Distinguishing between micro-networks (defined by spatial vicinity
on the exchange floor and closer-knit relationships) and macro-networks (given by
spatial distance and looser relationships),

Micro- and macro-networks have thus specific dynamics: since traders are
compelled to widen their search for information by expanding their relationships,
smallgroups of traders grow in size, while larger networks subdivide into smaller groups. Price volatility decreases with increased density of relationships in
small trading cliques and increases in large networks

As financial markets
have moved towards electronic trading in the past decade or so, a whole series of
new questions arise

3. The Role of Information Intermediaries

The mereexistence of securities analysts as
information intermediaries suggests that financial assets are marred by uncertainties
concerning not only their price, but also their status and character.

Financial securities are ascribed either to zones of certainty or to areas of
uncertainty, and this ascription influences both trading volume and volatility

This empirical finding leads Zuckerman
to...