Role OF Computers In Stock Market

INTRODUCTION

Stock market is increasingly turning into a casino as superfast computers take over the bulk of trading on the stock market.Stock exchange is a market place
where existing securities such as shares and debentures of listed companies are purchased and sold. It is a place where owners of securities may sell their shares in a safe, quick, and convenient manner. Here, transactions are take place in second hand securities that have been listed there on, and where shares, stocks are purchased and sold. Hence, stock exchange is referred to as STOCK MARKET or SHARE MARKET or SHARE BAZAR London stock exchange is the oldest stock exchange in the world. In India, Bombay (Mumbai) stock exchange is the oldest stock exchanges exist & operate in large majority of countries of the world. Its main function is to create an easy, cheap, & fair link between buyers & sellers of securities. Presence and vibrant functioning of a stock exchange is necessary for a developing economy. The Indian securities market is considered as one of the most promising and emerging markets. It is one of the top eight markets of the world. The stock exchange plays a vital role in the process of raising resources for the development of corporate sector. In the absence of stock exchange it would be impossible for private enterprises, industries and entrepreneurs to survive and growth. Stock exchanges are indispensable for the smooth and orderly functioning of corporate sector in a free market economy. A stock exchange need not be treated as a place for speculation or a gambling den. It should act as a place for safe and profitable investment, for this, effective control on the working of stock exchange is necessary. This will avoid misuse of this platform for excessive speculation, scams and other undesirable and anti-social activities

Role OF Computers In Stock Market

DIFFRENCE BETWEEN STOCK EXCHANGE & STOCK MARKET
There is a suitable difference between stock exchange and stock market. A stock exchange is an association formed to buy and sell securities or the physical location where this association operates. Such as BSE and NSE. A stock market is activity of all this exchanges and securities available to be bought and sold

Role OF Computers In Stock Market

BOMBAY STOCK EXCHANGE (BSE)
It is oldest stock exchange in Asia. It was established in 1875. It was established as The native share and stock and stock brokers Association with the approval of the central Government. In 1956, the Government of India recognized the Bombay stock exchange in the country under the securities contract (Regulation) Act, 1956. The BSE moved into its current premises The Phiroze Jeejeebhai Towers a 28 storied building located at Dalal Street Fort, Mumbai in 1980. In 2005, the name was changed to the Bombay Stock Exchange Limited. Sir Phioroze Jamshedji Jeejeebhai was the chairman of the exchange till his death. Today, BSE has been given permanent recognition (while recognition of other stock exchanges is renewed after every 5 years) BSE accounts for 80% of the activities of all the stock exchanges in India. IT WAS SET UP IN ORDER: 1) To protect the interest of investing people. 2) To promote, develop and maintain a well regulated market for dealing in securities. 3) To promote industrial development in the country. The BSE computerized its trading system by introducing BOLT (Bombay on Line Trading) on 14th March, 1995. It is among the 5 biggest stock exchanges in the world in terms of transaction volume. In 2005 June, the market capitalization of BSE was about Rs. 20 trillion. In 2005-06, there were about 4000 companies which were listed on it. In 2005-06, the daily turnover of BSE was Rs. 4000 crores (Approximate). The Price indices of securities traded on the BSE are reflected through the BSE sensitive index (sensex) and the BSE National Index (Nartex). The BSE sensex was introduced on 1st June, 1986 and BSE National index in 1988-89. This price index reflects the market sentiment in a systematic manner to enable investors, to know in which direction share prices are moving.

Role OF Computers In Stock Market

NATIONAL STOCK EXCHANGE (NSE):
It is an all India level stock exchange. It was incorporated in November 1992. It offers online trading system, which matches international standards. The main features of NSE are: It has national wide coverage. The investors can make dealings through NSE dealer. NSE is the first stock exchange in the world which uses communication technology for trading its securities. It is fully computerized screen based and ringless trading system. It allows the investors to trade their securities from their offices or homes through communication network with direct satellite link up. There is transparency in dealings. Investors can check the exact price at which transactions took place. NSE is company promoted by IDBI, ICICI, LIC, GIC and its subsidiaries, commercial banks, SBI capital market limited. The establishment of the NSE is an important step in upgrading trading facilities for investors and bringing Indian Financial markets in line with International markets. The index of NSE is called as The broader 50 share NIFETY.

Role OF Computers In Stock Market

WHAT IS SHARE?
Authorized capital of the company is divided into large number of equal parts of fixed value. Each part (unit) of capital is known as share. Each share is the part of the total share capital of the company. The value fixed for each share is known as face value or nominal value of the share and the person who purchase the share is called shareholder. He is also known as the member of the company. Shareholders get the dividend as the share of profit in the company. As there are mainly two types of shares: a. Equity shares b. Preference Shares.

a. EQUITY SHARES: The shares which are not preference shares are equity shares. These shares are also called as Ordinary shares. In return of investment they get the dividend. They are the real owners of the company because they are the real risk taker of business.

b. PREFERENCE SHARES: Preference shares are those shares which enjoy priority or preference over equity shares for payment of dividend and repayment of capital. These shareholders get dividend at the fixed rate during the life time of the company.

What is STOCK?
According to section 2(46) of the Indian companies Act, 1956 the stock means A bundle of fully paid shares put together for convenience so that it may be divided into any amount and transferred into any fractions and sub-divisions without regard to the original face value of the shares. It is denoted by a certificate called STOCK CERTIFICATE. Private company cannot issue stock can be obtained by conversion, if shares are fully paid. For issue of stock, the provision in the Articles of Association is compulsory. Stock do not have distinct number like share certificate. For converting shares into stock or converting stock into shares, an ordinary resolution is filled with registrar within thirty (30) days. The purpose of stock is that the stocks can be divided into any amount and it can be transferred into any fraction and sub-division, without considering the face value of shares.

Role OF Computers In Stock Market

FEATURES OF STOCK:
1. Stock is a bundle of fully paid up shares. 2. A company cannot issue stock originally and the stock can only be obtained by conversion of fully paid up shares provided the articles empower the company to convert shares into stock. 3. Shares may be reconverted into shares by an ordinary resolution. 4. A stockholder enjoys the same rights and privileges as that of a shareholder. 5. A company must give notice to the Registrar within 30 days when shares are converted into stock or reconverted any stock into shares.

Role OF Computers In Stock Market

IMPORTANTS TERMS RELATED TO STOCK EXCHANGE TRAMSACTION:

1) INSIDER TRADING: It refers to trading in shares on the stock exchange with sensitive information, which is not yet published. The insiders include managers, directors, and other employees, auditors etc. 2) BULL: (TEJIWALA) They are the brokers, who except rise in share prices, and they keep on buying with the objective of selling them at a higher price later. 3) BEAR: (MANDIWALA) They are the brokers, who expect a fall in share prices, and they keep on selling with the objective of buying them at a lower price in future. 4) PRICE RIGGING: When an individual or group of brokers or individuals artificially increase or decrease the price of a security on a stock exchange. It is not a healthy practice, as investors do get cheated by such a practice. 5) BOLT: It refers to BSE on line trading. Trading on the Bombay Stock Exchange is done on line.

Role OF Computers In Stock Market

6) JOBBERS: He is a professional independent broker who deals in securities on his own behalf. He purchases and sells securities in his own name. He buys securities as an investor, keeps them for a short period and sells them for a profit. Thus, a jobber does not work on commission basis but works for a profit. Normally, when a broker wants to purchase or sell securities on behalf of his clients, he usually approaches the jobber first. The jobber provides the quotation, and if the client agrees, he transacts with that jobber and if not, the broker approaches another jobber. 7) TARAWANIWALAS: He is an active member on the Bombay Stock Exchange. A tarawaniwala acts both as a broker as well as a jobber. He is basically a jobber, but at the same time, he is not prohibited to act as a broker on behalf of an investor. 8) MARKET ORDER: An order without specifying the price at which the transaction is to be done for a best possible price. 9) BROKER: A broker is an enrolled member of a stock exchange who is authorized to trade on the floor of the stock exchange. He is registered with SEBI. 10) SUB-BROKER: A sub-broker is a person who is affiliated to the broker of the stock exchange. He is registered with SEBI as a sub-broker. Investor can hold and trade in securities in dematerialized form.

Role OF Computers In Stock Market

ROLE OF STOCK EXCHANGE IN ECONOMIC GROWTH
Stock exchange plays an important role in the economic development of a country. They are useful for the growth, expansion & diversification of the corporate sector. Stock exchanges provide profitable channel for the investment of surplus funds in the corporate sector. They provide safe & profitable investment opportunities to individuals & institutions with surplus funds. However the positive role of stock exchanges is briefly stated as follows: 1) HELPS IN RAISING FUNDS: The main role of stock exchange is that it enables public limited companies to raise long-term funds from the stock market. The company can issue shares and debentures and obtain long term funds. The long term funds can be utilized for the purpose of expansion and modernization of existing units. Companies can also utilize the funds for the purpose of setting projects. 2) MOBILISATION OF SAVINGS: Small savings of large number of investors is possible to attract for investment in securities. Mobilization of small savings can strengthen the capital market. Transactions take place with proper rules and regulations which bprovide protection to investors. 3) GUIDANCE TO INVESTORS: Various securities are offered by the companies for investment purpose. Investors get guidance from the stock exchange to have their investment in profitable manner. 4) INDUSTRIAL DEVELOPMENT: The stock exchanges facilitate mobilization of long-term funds through the issue of shares and debentures. The long-term funds can be utilized by companies for the expansion and modernization, setting up of new projects The expansion and modernization, and setting up of new projects enhance or improve industrial development in the country. 5) GENERATES EMPLOYMENT: It generates employment facilities in the country. A number of brokers, sub-brokers, and other do get their employment because of stock exchange. Stock exchanges also facilitate indirect employment in the various sectors. Due to availability of long term funds, companies undertake expansion and modernization programmers, which in turn generate more employment.

Role OF Computers In Stock Market

6) REVENUE TO GOVERNMENT: The stock exchanges provide revenue to government, either directly or indirectly. The stock exchanges pay tax on the revenue or profits earned by them. Also, the investors who invest on stock markets are subject to capital gains tax. Capital gains tax is paid on the profits made on the securities such as shares, debentures, bonds, etc. the companies also pay corporate tax.

7) FACILITATE REGIONAL DEVELOPMENT: The stock exchanges also facilitate regional development in the country. Companies can generate long term funds due to stock exchanges. The funds generated can be utilized for setting up units in backwards areas. This leads to regional development in the country. 8) FACILITATES TRADING OF SHARES: The stock exchanges facilitate trading of shares. The share listed on the exchange can be traded. The share can trade between the sellers and buyers on the stock exchange. The trading of shares brings liquidity to the shares. The sellers can sell the shares and realize cash as and when they are in need of funds, or as and when they want to book profits. 9) WIDE MARKETABI.ITY OF SECURITIES: Due to on line price quoting system, on-line buying and selling facilities, internet and information technology facilities, demat facilities. All these provide ide marketability to securities of the companies. 10) INVESTMENT PRIORITIES: Stock exchanges facilitate the investors to decide his investment priorities by providing him the basket of different kinds of securities of different industries and companies. He can sell stock of one company and buy a stock of another company through stock exchange whenever he wants. He can manage his investment portfolio to maximize his wealth. 11) VALUE ADDITION TO THE SECURUTIES: Listing of shares at the stock exchange adds to the prestige and reputation, companies with the advantage of listed shares could raise loan funds from corporate sector.

10

Role OF Computers In Stock Market

DEMATERIALISATION
The process in which share certificates and other securities in physical form are transformed into an electronic form is called dematerialization of shares. When the shares and other securities are dematerialized their accounts are kept and maintained in the demat account of the depository participants (DP). In India the depository act was passed in the year 1996. According to the provisions of the depository act dematerialization of the shares and other securities is optional Because of this investors can hold shares and securities in the electronic form or in the physical form. Recently SEBI had made the dematerialization compulsory of those shares and securities which are traded often and on large scale in the stock exchange. When investors has decided to convert shares in the electronic form, he has to approach to depository participant who is an agent of the depository and open an account. An investor have to surrender share certificate in the physical form and DP will arrange to sent and verified by the company and on confirmation credit investors account with an equivalent number of shares. The securities held in demat form do not bear any distinguishing features like distinctive number; folio number and so on.

11

Role OF Computers In Stock Market

PROCEDURE OF CONVERTING PHYSICAL SHARES IN ELECTRONIC FORM

I.

OPENING CLIENTS DEMAT ACCOUNT:

The procedure of opening Demat account is simple The procedure is as follows The investor has to fill the account opening form. The form is printed form. The form is available with D.P. The investor has to sign DP client agreement. It states the right and duties of D.P. It also states the right and duties of the client. The D.P. gives the client a unique identification in depository system. The client ID must be quoted in all correspondence with D.P. The DP gives Delivery Instruction slip (DIS) for trading. A. SUBMISSION OF DEMAT REQUEST AND SHARE CERTIFICATE BY INVESTOR: An investor intending to dematerializing his securities submit duly filled in and signed Demat Request Form (DRF) and share certificate to his DP along with the form he has to give a copy of PAN card; residence proof; recent photographs etc, some nominal charges are required to be paid to DP. This form is to be submitted in triplicate one copy is given to investor as acknowledge, second one is kept by DP for his reference and the third one is forwarded to depository with submission of DRF, the process of dematerialization starts.

B. FORWARDING OF DRF AND SHARE CERTIFECATE TO COMPANYS REGISTRAR: The DP will verify the DRF form as well as certificates submitted and give acknowledgement of receipt to the investor. The DP gives back the third copy of DRF to investors. The DP also puts remark surrendered for demat on the face of share certificates submitted. The DP also forwards the first/original copy of DRF along with certificates to the registrar of company for further processing/verification.

12

Role OF Computers In Stock Market

C. FORWARDING A COPY OF DRF TO DEPOSITORY: The second copy of DRF is forwarded by the DP to depository (NSDL or CDSL) for information. D. CONFIRMATION OF RECEIPT OFDRF BY DEPOSITORY: The depository sends a letter confirming the dematerialization request of the investor to the Registrar or the Transfer Agent of the company for follow up actions. E. UPDATING THE RECORDS BY COMPANY: After the receipt of confirmation from the depository, the secretary of the company verifies the signature of the investor with companys records, the contents of DRF from, folio of investor, etc if the details are correct he calls the meeting of share Transfer Committee of the company for giving approval tob proposed change. The resolution giving permission for dematerialization of shares as per request of the investor is approved in this meeting. After approval, the secretary updates the records of the company. For this he cancels the certificate numbers and distinctive numbers of shares in the name of concerned shareholder and gives clients Identification Number (Client ID) in its place. He also notes the name of depository against the share dematerialized. F. CONFIRMATION OF DEMATERIALISATION TO THE DEPOSITORY: After updating his records, the company secretary sends a copy of minutes of Share Transfer Committee and companys approval of dematerialization to the depository or through its share transfer agent. G. UPDATING OF RECORDS BY DEPOSITORY: On receipt of these documents, the depository credits the demat account of the investor with the securities dematerialized. The depository also records clients ID number and other details in its records.

13

Role OF Computers In Stock Market

OBJECTIVES OF STOCK MARKET

1. To understand the terms and jargons used in the financial newspapers and periodicals. 2. To understand the various products, participants and the functions of the securities market. 3. To know the regulatory framework for the Indian securities market. 4. To understand the concept of mutual funds. 5. To know about the roles of different players viz., custodians, asset management companies, sponsor etc. in the mutual fund industry. 6. To learn about the tax and regulatory issues related to mutual funds. 7. To understand the fundamentals of Net Asset Value (NAV) computation and various investment plans. 8. To understand the concept of derivative. 9. To learn the types of derivative products and their application. 10. To learn about the trading of derivatives on the stock exchanges. 11. To understand the capital market trading operations. 12. To learn the other important regulatory aspects. 13. To learn the basics of the derivatives market 14. To understand the use of derivative products in speculating, hedging and arbitraging 15. To learn the trading, clearing, settlement and risk management in equity derivatives 16. To have a practical orientation towards the principles of investment, pricing and valuation. 17. To learn the various methodologies of financial analysis.

14

Role OF Computers In Stock Market

SHARES IN STOCK MARKET

1BlueChip Shares Shares of large, financially strong and well established companies which have stood up against all kinds of market conditions and which have good profitability and dividend track records are referred to as blue chip Shares. 2 Growth Shares These are shares of companies, which have out-performed others in the Industry, Shares of such companies grow at a rate faster than others in terms of sales and profitability. E.g. Infosys, Wipro, Satyam and NIIT are current examples of growth stocks in the Indian IT industry. 3 Value Stocks Value stocks are those stocks that currently have a low market sentiment and are underpriced relative to their intrinsic worth. 4 Defensive Shares These Shares are generally neutral to business cycles. These shares have low fluctuations in their prices and are fairly stable.

5 Cyclical Shares These shares are in commodity companies and their prices depend on cyclical fluctuations of the economy. If the economy is doing well, they appreciate otherwise, their prices would fall. 6 Turn Around Shares The shares, which belong to the companies that, have large accumulated losses but which show signs of recovery or making profits.

15

Role OF Computers In Stock Market

ANALYTICAL VIEW
The study aims at analyzing the weekend effect and the calendar effects on the volatizing and returns of the bow bay stock exchange BSE-100 index after the number of days for settlement changed to 2 days. The anomalies of stock market have been studied widely and almost all the effects and the volatile nature of the stock prices are widely known. The investors today are well informed of the ways in which the stock market operates and the risks associated with their investments. The various factors which affects the stock prices and hence the BSE-100 index are related to the happenings in the country, its economy, happenings across the other market of the world and also to the performance of companies sectors etc. The factors contributing to the volatility of stock prices are numerous and hence the risk associated with them varies. The presence of seasonality or calendar effects in the returns has been observed in many market of world including the markets in the emerging countries. Any change in markets way of operation can possibly change the investing habits of the investors. The study of weekend effects on the other market of the world has shown interesting results. The average daily return is not same across all the day which should be in the ideal case. In general, the Mondays are expected to behave differently from the entire week because of the weekend effects weekend effect can be explained as the increased volatility when the market reopens on Monday (The first working day of the week) after the weekend due to any happenings over the weekend. This is generally observed as low trade volumes on Friday (which is last working day of the week). The general tendency of the investor is to reduce the risk associated to his/her investment and gain maximum return. Keeping the funds parked for the weekend at a safe place such as bank and investing it on Monday offers more safer option than remaining invested over the weekend and bearing the losses (if any) due to happenings over weekend. Moreover this behaviour various from investor and from portfolio to portfolio generally regular investors and the major players are quite apprehensive of the weekend volatility, and hence refrain from entering into riskier investments. The investor is also choosy about selecting the months which have maximum yield, although uncertainty still plays its role, but the investors plan their investment days and expected returns well in advance. Holidays in stock market also play a role in the volatility of stock market. All such factors have been analyzed in this studies in the content of Indian stock markets.

16

Role OF Computers In Stock Market

SCOPE The concept of stock market place was not a very systematic system. People who need to trade generally gathered on the streets which was popularly known as DALAL STREET and the trading and the transaction used to take place from the Dalal street. It was in the year 1875 that the first stock exchange was formulated in the name of The Native Share and Stock Brokers Association which is presently known as the Bombay stock exchange. Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transaction. Earlier it was very difficult for them to keep the record of each and every transaction as there were no computers but today the business of stock exchanges totally depend on computers. Today billions of shares are traded in stock exchanges so it is not easy to make the record of these shares. In ancient times shares were held in physical form but now most of the companies list their shares in stock exchanges.

17

Role OF Computers In Stock Market

ROLE OF COMPUTERS IN STOCK MARKET
It is true that in modern times like today, the stock exchange cannot function effectively without the use of computer. Computer has helped the stock exchange in being more dynamic and productive. People and companies can make investments in stocks with the click of a mouse. Companies can see the exact position of their stocks in a very short time with the help of computer. In the stock market itself, everything is computer recorded. This helps in keeping the database current and up-to-date. Basically computers are used in stock market for trading purpose. Trading is done easily with the help of computers. There are various trading methods through we can trade in stock market. 1) Internet trading (online trading ) 2) Offline trading 3) WAP trading

First we will see the how online trading is done through computers:Trading with the help of computer having internet connection and online trading account is called online stock trading. Basically people use online stock trading who want to trade themselves.

Essential of Online Trading Online trading account You have to open an online trading account with any of the bank or financial trading system like ICICIdirect.com, 5 paisa.com, stockkhan.com etc. There will be nominal annual charges. These charges vary from bank to bank but should not be more than Rs. 1000 annually. A computer with internet connection or can do trading in internet caf. After successfully opening the online account you will receive the username and password with the help of which you can login in online trading system. Once you get familiar with the system then you can trade yourself at your home or in the internet caf.

18

Role OF Computers In Stock Market

Software Used In the Stock Market
Charting Software No trader is likely to buy or sell stock without first consulting a price chart of the stocks recent or even long-term history. A stock chart is one of the basic components of trading. Traders rely on software or create these charts, and the technical features of charting software widely vary. The revolution in web based software now gives nearly anyone with a basic Web browser access to powerful stock charting software online and for free. These websites provide much of the same functionality of standalone charting software. They let you chart a stock, analyze its trading volume, add technical analysis to the chart, chart multiple stock on the same chart to compare relative returns and even draw annotations directly on the chart. Stand-alone

platforms may provide additional functions, such as the ability to create your own analytical formulas that analyze the charts.

Market Profile Market Profile software lets you analyze any stock or other financial instrument with an emphasis on statistical analysis, rather than conventional time-based charting. It shows a stocks price activity as centered around a traditional bell curve rather than extended through time as on a conventional chart. The Chicago Mercantile Exchange created this novel approach to using software in the financial markets during the 1980s and it has since in popularity to traders of many different markets.

19

Role OF Computers In Stock Market

Trading Platform Charting Software only gets you halfway when interacting with the stock market. You still need software on which to actually place your trades. Most brokers provide their own proprietary platforms for this purpose , while some programs will work with many different brokers. The exact layout of a trading platform varies between software applications, but nearly all have obvious buttons to enter your stock orders. A portfolio of open orders displays in a software window resembling a spreadsheet. The formatting and details on these screens vary between brokers. Some trading platforms provide a considerable degree of customization for what you wish to track in your open orders.

Depth of Market Active traders often rely on a depth of market screen that actually shows all the orders entering the market from other buyers and sellers. You can see in real-time how the supply and demand for a given stock changes throughout the course of the day. Some software shoes this in a grid of rows and columns while other programs build a price ladder that simultaneously acts as a depth of market screen and also an order execution and monitoring window.

20

Role OF Computers In Stock Market

ADVANTAGES OF ONLINE TRADING:
No Need to depend on any broker or anybody else to place the order or to square off the order. In short you are the boss of yourself to do trading of stocks. Its reliable, convenient and you can take your own decisions yourself by actual selling or analyzing the market on the computer screen instead of calling broker all the time and getting news about the market. Its not possible or practical for a broker to update everyone about each and every news about the market or any news which will influence or affect the stock market. Always remember stock market always get influences (or affected) by the appropriate news. So get updated or be in touch with news all the time. This will benefit always. All your transactions and related documents can be seen online and can also be downloaded to your PC without depending on your broker. One can also check the status of the amount on daily basis through online trading system.

21

Role OF Computers In Stock Market

DISADVANTAGES OF ONLINE TRADING:
In online trading system one may face problem of disconnection to internet due to which one will not be able to login to his/her online trading system and hence one cant do trading himself/herself. At such critical times one have to call trading system executive and do trading or square of transactions. If may face other problems such as electricity cut-off, PC problem etc during online trading then immediately one should contact to own trading system executive and place orders or do trading. What is high- frequency trading? A: Some people use it to describe all electronic trading, but it is really a subset that involves large-scale turnover of securities to capture small movements in price, says Matthew Samuelson, a principal with research firm Woodbine Associates. Some people also lump in algorithmic trading, which is automated way to execute trades according to some formula. It may or may not be high frequency. Many pension and mutual funds use it. If a fund gets hit by investor redemptions and needs to raise cash-which was common week of August- rather than selling a big block at once, which would put downward pressure on the stocks price, it might dribble the order into the market based on some formula.

22

Role OF Computers In Stock Market

ALGORITHMIC TRADING:
It is also called automated trading, black-box trading, or algo trading, is the use of electronic platforms for entering trading orders with an algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or quantity of the order, or in many cases initiating the order by a robot, without human intervention. Algorithmic trading is widely used by investment banks, pension funds, mutual funds, and other buy-side (investor-driven) institutional traders, to divide large trades into several smaller trades to manage market impact and risk. Sell side traders, such as market makers and some hedge funds, provide liquidity to the market, generating and executing orders automatically.

OFFLINE TRADING: Doing stock trading with the help of broker or through phone is called offline trading. In other words trading will be done by another person on your behalf based on the instructions given by you. If you want to do offline stock trading then you need to open the demat account. As we have already shown above the procedure of Demat Account. WAP trading at NSE
NSE became the first exchange to grant permission to its members for providing WAP trading services. NSE has granted permission to one of its trading members M/s.Gogia Capital Services Ltd. to provide securities trading through WAP. This is the first WAP enabled online stock trading facility in the country. The WAP technology has been harnessed jointly by NSE.IT and Bharti Telesoft using Bharti Telesoft's WAP interface and NSE.IT's E-broking products NeatXS/ iXS, leading to convenience of live stock trading for people on the move.

23

Role OF Computers In Stock Market

DIFFERENT TYPES OF STOCK TRADING:

The Two main types of stock trading are: Day trading Delivery trading DAY TRADING: Buying and selling of stocks on daily basis is called day trading this is also called as intraday trading. Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly during market hours that is 9.55 am to 3.30 pm (Indian time). DELIVERY TRADING: In delivery trading as the name say, one have to take the delivery of stocks and after getting these stocks in the demat account one can sell at any time (or one can hold them till you want, there is no restriction). In delivery trading one need to have the amount required to buy stock for example, if one want to buy 100 stocks of reliance at price 500 than one must have (100*500) Rs. 5000 in your account; once purchased these stocks will get deposited in the demat account. Then one can sell these stocks when the price of these stocks goes up or else one can sell whenever he/she want. BOON OR CURSE Computers are a boon to stock market in the following ways:Computers serve as a major foundation for the stock market because they record share ownership information on databases.If someone wants to purchase a stock, they dont even have to go through a human representative to do it- often times, a person can submit an interest in purchasing a stock over the internet, and the computer will act as the broker and try to find the cheapest price the automated stock system can process millions of shares in mere hours. Even more impressive are the superfast computers in use today, which can trade a stock in a millionth of a second Computer is a curse to stock market in the following ways;Though computerized trading is not illegal, it has opened the door to more market manipulation. Stock market can make you richer in just one day, but it can brings you down so much that if you are lacking information on what a stock market is. Sometimes computerized system shows the profit on one machines is small ,but the return on a battery of machines is handsome which creates a difference between the profit ratio

24

Role OF Computers In Stock Market

RECOMMENDATIONS/ SUGGESTIONS
1) Control & Conquer your Mind to Win in the Markets! 2) Always invest your money in Installment but never invest more than 8% of your capital in one stock. 3) Stock market is volatile market so Always Book Partial Profit whenever you get the chance. 4) Keep 25% of your capital in spare, it will always help you in volatile stock market. 5) You should always avoid the rumors that are making people confused about the prices of shares. 6) IN STOCK MARKET BUYING MONKEYS WILL MAKE MONKEY OF YOU so dont trust on them.

25

Role OF Computers In Stock Market

CONCLUSION
At last we can conclude that computers had made the working of stock market more easier. People are making the deals themselves, they use smart phones and portable computers to communicate as information technology advances, the stock exchange infrastructure will grow more sophisticated and most likely will become more automated. The stock buying and selling process evolves along with developments in computer technology and usability, so its fairly certain that the stock market will continue to expand and reshape. Stock market plays a pivotal role in the growth of industry and commerce of the country that eventually affects the economy of the country to a greater extent. Stock market are the places, where exactly you do your business, the rule would be if you play, you must stay. SHARE EK JUAA HAI JO KABHI KISI KA NAHI HUA HAI

26

Role OF Computers In Stock Market

BIBLOGRAPHY

ANGEL BROKING.COM http://www.trade2win.com www.sapphirewealth.com cpg-finance.com sharestrade.com www.dreamstime.com www.gograph.com www.gograph.com

27