Risk Management in the Intellectual Capital Stock Market

Electronic commerce or e-commerce is a new phenomenon in the financial markets. The rapid advances made in the information and communications technology sector have facilitated the advent of e-commerce and has resulted in global market euphoria over technology stocks in financial markets. This paper is based on the premise that an initial characterisation of the e-commerce sector is necessary as a precursor to a more profound understanding of the financial market mechanism and asset pricing process in the Intellectual Capital sector.