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Application(with34+Important
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PostedIn|TestingTipsandresources|LastUpdated:"April17,2017"
TodaysarticlewillbringyouenhancedclarityontheInvestment
BankingDomain.Youwillgettoknowwhattotestandhowinan
InvestmentBankingApplication.
Beforewedivedeeperintohowto
testinvestmentbanking
applications,itsimportantto
understandthisdomainfirst.So,
wewillfirstlearntheInvestment
Bankingdomainterminologies,
whichwillhelpyouunderstandthe
testcaseseasily.
Wehavealsoincludedsampletest
scenariosofvarioustestingtypeslikedatabase,security,and
performancetestingofaninvestmentbankingapplication.
Alsoread=>TestingBankingapplications
LetsstartwithInvestmentBasics:
Investmentisnothingbutsavingmoneyinawaythatwillgetyou
returnsforitinthefuture(shorttermorlongterm).Savingmoney
inaccountswillnotgenerateanybenefits.Instead,oneshould
investthemoneyinoptionslikeMutualFunds,Bondsetc.,which
yieldreturnsinthefuture.
LearnmoreaboutIBdomainhere.
WhyshouldoneInvest?
Oneneedstoinvestmoneyinordertoearnreturnsandgenerate
returnstomeettheirmonetarygoalsinlife.Inotherwords,wecan
saythatoneshouldinvesttomeetthecostofinflation(Inflation
meanstherateatwhichthecostoflivingincreasesinfuture).
WhentostartInvesting?
Theimportantruleforallinvestorsistoinvestearly,regularlyand
forthelongterm,notshortterm.
WhataretheavailableInvestmentoptions?
OnecaneitherinvestinPhysicalAssetssuchasrealestate,
gold/jewelry,commodities(seeds,crudeoil,naturalgas,metals
etc.,)orinFinancialAssetssuchasfixeddepositswithbanks,
provident/pensionfundetc.,orinsecuritiesmarketsuchasshares,
bonds,debenturesetc.
FinancialOptionsforInvestments:
FewShortterminvestmentoptionsare,
SavingsBankAccount:Thisisnothingbutsavingourfunds
inregularbankaccounts.Forsuchsavings,theinterestrate
willbeverylow,approximatelytheinterestratevaries
between4%5%p.a.
MoneyMarketorLiquidFunds:Thisisanotheroptionfor
shortterminvestmentwhichgivesbetterreturnsthanthe
abovementionedsavingsaccount.However,theinterestrate
forMoneyMarketFundswillbelesserthanthefixeddeposits.
FixedDepositswithBanks:Thisisabetterinvestment
optionwithabithigherinterestrateswhencomparedwiththe
abovetwooptions.Fixeddepositsarealsonamedasterm
deposits.Theinvestmentperiodforthisoptionstartswitha
minimumperiodof30days.
Apartfromtheaboveshortterminvestmentoptionstheseareafew
oftheLongterminvestmentoptions,
PostOfficeSavings:ThisissavingourmoneyinthePost
Officeundervarioustypesofschemes.Theriskinvolvedin
thisislow.Theinterestrateforthisoptionis8%perannum.
Theinterestamountforthisoptionispaidmonthlyandthe
maturitytermis6years.
PublicProvidentFund:Anothermainlongtermsavings
investmentoptionisPublicProvidentFund.Theinterestrate
forthisoptionisabout8%p.aandthematurityperiodis15
years.
CompanyFixedDeposits:Thisisadifferentkindof
investmentoptioninwhichwecaninvestforshortterm(6
Months)tomediumterm(35years)withacompany.The
interestratewillvaryfrom6%9%p.a.Theinterestamount
willbepaidmonthly,quarterlyorannually.
WhatYouWillLearn:[show]
IntroductiontoInvestmentBankingDomain:
InvestmentBankisafinancialentitythatsuggestsanindividual,
company,governmentsectoredfirm,etc.onhowtoraisetheir
financialcapitalbyparticipatinginthemarketactivities.
ThemainroleoftheInvestmentBankistoactasamediator
betweenthecompanies(whoareinterestedinsellingtheir
securities/shares)andtheindividuals(whoarewillingtopurchase
thesame).
Investmentbankoperatesintwowaysbuysideandsell
side.
Buysideincludesservicessuchasbuyingsharesforinvestors
whereasSellsideincludesunderwritingthestockandsellingthe
sharestotheinvestorsfromcompanies.
BuysideoperationofInvestmentBankwithanexample:
Supposeaninvestorwantstobuy50sharesofABCDCompany.
ThenhewillconsultanInvestmentbankwherethestockbroker
placesanorderforthesameanddeliversthesharestotheInvestor.
SellsideoperationofInvestmentBankwithanexample:
SupposeaCompanyPQRplanstoissuenewsharesofstockinIPO
thentheInvestmentBankverifiesthesharesandsellsthesameto
theirClients.ThiswayPQRCompanyraisesfundsbyissuingtheir
stock.
BelowarethefewimportanttermsofInvestment
BankingDomain:
1)StockExchange:Anentitythatcontrolsthebusinessofbuying
andsellingofsecurities.StockExchangecanberegionalornational
exchanges.
Example:NASDAQUSA,NSEIndiaetc.
2)Stock/Share/Equity:Totalcapitalofacompanyisdividedinto
equalunitseachunitistermedasshare/equity/stock.Stockalso
representsapartofownershipofacompany.
3)FacevalueofaShare:Theamountorvalue(usedduring
buyingorselling)allottedtoasharebythecompany.
4)IssuePrice:Thepriceofacompanyssharesatwhichtheyare
availableinthemarket.Whenthesesharesaretradedinthemarket
thepricemaybebeloworabovetheissueprice.
5)InitialPublicOffering(IPO):Thisisnothingbutsellingthe
securitiesorsharesofacompanytothepublicforthefirsttimein
themarket.
6)MarketCapitalization:Thefinancialvalueofacompanyis
calculatedbymultiplyingthesharepricewithnumberofshares
whichistermedasMarketCapitalization.
Example:SupposeaCompanyXhas100shares.Thecurrent
marketpriceofeachshareis$50.Thenthemarketcapitalizationof
theCompanyXis$5000.
7)SecurityMarket:Securitymarketisaplacewherebuyersand
sellersofsecurities(bonds,debentures,stocksetc.,)dotheir
transactionsofbuyingandsellingthesecurities.
8)SEBI(SecurityandExchangeBoardofIndia):Anauthority
thatmakessurewhetherthebuyersandsellersbehaveinaproper
wayinthemarket.Sothattheygettheirdesiredprofits.Thereare
differentsecurityandexchangeboards/commissionsasperthe
country.
9)Dividendonshare:Dividendisapercentageofthevalueofa
share,whichacompanyreturnstoitsshareholdersfromitsannual
profits.
10)BidPrice:BidPriceistherateatwhichthebuyerisreadyto
buythestock.
11)AskPrice:Thisisthepriceatwhichthesellerwantstosellhis
stock.
12)Futures:Afuturecontractisanagreementbetweenthebuyer
andthesellerinwhichthestockoffuturedeliveryistransactedata
particularprice.
Forexample,ifyouwanttopurchaseaMarchfuturecontractof
XYZCompanythenyouhavetodothatatthecurrentpriceavailable
inthemarket.LetssaythattheMarchfuturesaretradingat$100
pershare.Bythetimethecontractexpires(lastdayofthecontract
inMarchmonth)thepriceofthestockmaynotbethesame.Itmay
be$95or$110.Basedonthesepricedifferencesinvestorsmakes
profitsinthemarkets.
13)Options:Itisafinancialcontractbetweenthebuyerandseller
inwhichthebuyerhastherighttobuyorsellasecurityata
particularpriceonorbeforeaparticulardate.
Optionsareoftwotypes:Calls,andPuts.
Callmeanstherighttobuyanassetatapricewithinaperiodof
time.
Putmeanstherighttosellanassetatapricewithinaperiodof
time.
14)Portfolio:APortfolioisacombinationofvariousinvestment
assetsmixedandmatchedforgainingprofitsasperaninvestors
goal.Itemsthatareincludedintheportfoliocanbeshares,
debentures,mutualfundsetc.
15)Depository:Anentitythatholdsthesecuritiesandfundsof
depositorsinanaccount.ThetwodepositoriesinIndiaareNational
SecuritiesDepositoryLimited(NSDL)andCentralDepository
ServicesLimited(CDSL).
16)MutualFunds:Anentitythatcollectsmoneyfrominvestors
andinveststhesameinvariousfinancialinstrumentslikeshares,
bonds,debenturesetc.
17)NetAssetValue(NAV):NAVofthefundisthecumulative
marketvalueoftheasset.NAVperunitisthenetvalueofthe
assetsdividedbythenumberofunits.Buyingandsellingofshares
inthemarketaredoneonthebasisofNAVrelatedprices.
18)NiftyIndex:Itisascientificallydeveloped,50stockindex,
whichshowsthemovementoftheIndianmarkets.Itbehavesasa
barometerfortheIndianmarkets.
19)WatchList:Alistofselectedsecurities.Itismainlyusedto
monitortheirmovementinthemarketregularly,closelyor
frequently.
InvestmentBankingOrganizationalStructure:
InvestmentbankingcomprisesofFrontOffice,MiddleOffice,
andBackOffice.
1)FrontOffice:Thisplaysamajorroleingeneratingfunds.The
mainareasoffrontofficeareInvestmentbanking,Sales&trading,
andResearch.
InvestmentBankinghelpscustomersinraisingfundsin
capitalmarketsandalsosuggeststhecompaniesinraising
theircapital.
Sales&Tradingdealswithbuyingandsellingofstock
(shares,bondsetc.,)
Researchinvolvesreviewingthecompanyreportsabouttheir
buy/sellratings,companysprospectsetc.Thiswillhelpin
providingadvicetotheirclientsintherightway.
2)MiddleOffice:ThisdealswithRiskManagement,Corporate
TreasuryandFinancialControl.
RiskManagementinvolvesanalyzingthemarketsituations
andinformingtheclientsoftherisksinvolvedintheirtrades.
CorporateTreasuryisresponsibleforthefundsofInvestment
Banks.
FinancialControltracksthecapitalflowofthefirmandits
success.
3)BackOffice:ThisincludesOperationsandTechnology.
Operationscheckswhetherthetradeshavebeenexecuted
properlyandfundstransferredsuccessfully.
Technologysupportsthesoftware,data,andsystemsof
InvestmentBanks.
TradeLifeCycle:
Themaingoalofeverytradeorderistogetexecutedatasuitable
pricewithaminimumriskspread.
Thevariousstagesofatradeorderareasfollows,
Decisionoftheinvestortotrade
Placingthetradeorder
Executionofthetrade
Clearingofthetrades(Tradevalidationandconfirmation)
Settlementoftrades
Funds/Securitiessettlement
HowtoTestInvestmentBankingApplication:
BeforemovingtothetestingpartofInvestmentBanking
applicationsherearethesamplescreenshotsofhowanIB
applicationlookslike.
#1)Fromthebelowscreenyoucanviewthetermsoptions(sell
andbuyofIBMshares),bidprice,askpriceetc.,
(Note:Clickonanyimageforenlargedview)
#2)Fromthebelowscreenyoucanviewthepositions,quantityand
priceofaparticularsymbol.
#3)BelowisthesamplescreenshotofHowaWatchListofanIB
applicationlookslike.
#4)Thisscreenshowsthegraphicalviewofasymbol.
#5)Belowscreendisplayshowapositionororderisclosed.
#6)Thisshowstheprofiledetailsofaclient.
#7)BelowscreendisplaystheviewofmobileIBapplication.
[screenshotsource1andsource2]
TestScenarios:
DifferentInvestmentBankingapplicationshavedifferentsoftware
testingandQArequirements.Belowarefewgeneraltestscenariosor
testcasesusefulfortestingsuchapplications.
PositiveScenarios:
1)TheInvestmentbankingapplicationshavedifferentloginsfor
differentuserslikebrokers,dealers,individualsorinvestorsetc.
VerifytheloginsofappropriateuserswiththeirloginIDsasthe
permissionsforaccessingtheapplicationforalltheusersmaynot
bethesame.
Forexample,abrokerhasthepermissiontoviewthetradinglimits
oftheindividualsbasedontheamount/fundsintheindividuals
account.However,thisfacilitymaynotbeavailableforthe
individual.
2)ThefunctionoftheWatchlistcanbeverifiedbyadding,
removingthesecurities/symbolstoit.Ensurethattheremoved
symbolsshouldgetdeletedfromtheWatchlistandviceversa.
3)BuyOrderTotestthisfunctionality,placeatradebuyorder
foranysymbolwithsomequantitylike10or20etcandsubmitthe
same.Thengotheorderssectionandverifythedetailswhetherthe
orderhasbeenplacedsuccessfullyornot.
4)SellOrderPlaceatradesellorderasabove(buyorder)and
verifythedetails.
5)ChangeOrderGototheorderssectionandopenanyprevious
orderorexistingorderandmakefewchangeslikeeditingthe
quantityorsymboletcandverifywhetherthemodificationsget
updatedornot.
6)CancelOrderOpenanexistingorderandtrytocancelit.The
ordershouldbecanceledsuccessfully.
7)Differenttypesofordershavetobetested.
MarketorderTrytoplaceatradeorderforthemarket
priceandcheckwhetherthetradegetsexecutedforthatprice
atthesamepointoftime.
LimitorderTrytoplaceanorderforaparticularpriceand
checkwhetherthetradehasbeenexecutedwhenthemarket
pricemeetsthepricesetbytheuser.
8)Checkandverifywhetherthepropernotificationsorwarning
messagesaregettingdisplayedforthecorrespondingactions.
Forexample,afterplacingatradebuyorderandsubmittingit,a
messageshouldbedisplayedthattheorderhasbeenplaced
successfully.
9)Trytoupdatetheuserinformationlikeemail,mobileno.etc,
saveitandlogoutfromtheapplication.Logintotheapplicationand
verifywhethertheupdatedinformationhasbeensavedornot.
10)IftheAUT(applicationundertest)supportsvariousterritories
orgeolocations,checkfewfunctionalitiesforvariouslocations.
11)Testthecalculationspartoftheapplicationverythoroughlyand
also,testitslocalization.
12)Testtheconnectionsoftheapplicationswhethertheyworkout
ofthestagingenvironments.
13)Thesecurityoftheapplicationshouldalsobetestedasit
containsthepersonaldataoftheusers.
14)Multitaskingoftheapplicationsshouldalsobetestedwhen
otherappsareopenonthedevice.
15)Applicationsquality,lookandfeel,userfriendlinessetcarealso
tobetestedasitgainstheuserstrust.
NegativeScenarios:
1)Trytoplaceatradeorderformorethanthevalueoffunds
availableintheaccountandtheordershouldnotgetplacedandit
shouldpopupawarningmessagestatingthatthefundsare
insufficient.
2)Testthequantityofsharesfeatureintheapplication.Placea
tradeorderforthenumberofsharesgreaterthantheavailable
quantityofshares.Tradeshouldnotbeplacedasthequantityof
sharesrequestedismorethantheavailablequantity.
3)Trytoplaceatradeorderforastockforwhichtheexpirydate
hasbeenreached.Theordershouldnotgetplaced.
Alsoread=>HowtoClassifyPositiveandNegativeTest
Scenarios
TestingtheDatabaseofanInvestmentBanking
application:
1.LogintotheIBapplicationandcreateaprofileforaClient
withallrequiredmandatorydetailsandsavethedetails.Now
logintothedatabaseofthesameIBapplicationandverifythe
detailsoftheclientthroughSQLqueries.Allthedetails
enteredthroughthefrontendapplicationneedstobesavedin
thedatabase.
2.OpenanexistingrecordofaClientandmodifyfewdetailslike
email,addressorphonenumberandsavethedata.The
updateddetailsshouldgetsavedinthedatabase.
3.WhilecreatingaprofileforaClient,enteronlyafewdetails
andwithoutsavingthedataclosetheapplicationorsignout
fromtheapplication.Nowcheckinthedatabasethatthe
earlierentereddetailsshouldnotgetsaved.
4.Trytocreateaduplicaterecordforanalreadyexistingclient,
therecordshouldnotgetcreated.
5.OnbehalfofaClientplace2or3tradeordersandsubmit.
Nowverifythedatabasewhetherthesametradeordersgot
updatedinthedatabaseornot.
6.LogintoaClientsaccountandcancelanexistingorder,now
checkthesameinthedatabasethattheparticularrecord
shouldgetcanceled.
TestingtheSecurityofanInvestmentBanking
application:
1.CreateaClientsprofile,entertheusernameorloginidand
enterthepasswordtoo.Thedatainthepasswordfieldshould
beencryptedsothatthehackerscannotfindthepassword.
2.Trytologintotheapplicationwithinvalidcredentials.The
systemshouldnotallowthelogin.
3.WhilenavigatingthroughthepagesintheIBapplicationor
websitethebackbuttonfunctionalityofthebrowsershould
notwork.(Mainlyforfinancialwebsitesthisfunctionality
shouldbeblocked.)
4.Logintotheapplicationandtrytoperformanytransaction
andleavethesystemidleforsometime.Thentrytoproceed
withthetransactionthesystemshouldgetloggedoff.This
indicatesthesessiontimeoutoftheapplication.
5.TrytologintotheapplicationwithforaparticularuserIdwith
aninvalidpasswordandrepeatthesamefor3attempts.Then
theparticularloginidshouldbeblocked.Thisfeaturerestricts
hackersfromenteringintothesystemwithbulkdata.
6.Logintotheapplicationandperformanytransaction.Andnow
verifythecookiesofthebrowser,theyshouldbeinan
encryptedformtoavoidhackingofthedata.
TestingthePerformanceofanInvestmentBanking
application:
1.WhilenavigatingthroughtheIBwebsitecheckwhetherthe
systemrespondsquicklytoanactionperformedornot.This
determinesthespeedoftheapplication.
2.TrytologintotheIBapplicationwithvarioususerIds
simultaneouslyfromvarioussystems(no.ofusersthatthe
applicationcanhandle).Theapplicationshouldhandle
multipleuserloginsthewayitisintendedto.
3.LogintoIBsitewithauserIdandplacethehugenumberof
tradesincludedwithsomecomplexfundstransactions.This
revealstheabilityoftheapplicationtohandlelargevolume.
4.LogintoIBsitewithvarioususerIdsfromvarioussystems
parallellyandperformhugetransactionsfromalltheusedIds
atthesametime.Thisshowshowmuchstresstheapplication
canhandle.
TipsfortestinganInvestmentBankingApplication:
ThetestercannottesttheInvestmentBankingortrading
applicationuntilhe/shegainsagriponthedomain.
AnInvestmentbankingapplicationisnotjusttestedfor
knowledgebutshouldbetestedforthelogicbehindit.
Whiletestingthefunctionalityrelatedtotrades,concentrate
ontheexpirydatesofthestock.
WhileplacinganytradesthroughanIBapplicationyoushould
becarefulandconcentrateontheSymbols,astheremaybe
analphabetdifferenceinthem.Forexample,whileplacinga
tradeorderforSilver,justmakesureforwhichtypeofSilver
youareplacingtheorder.(Silver=30kglot,SilverM=5kg).
Conclusion:
Withtheabovementionedterminology,youwillnowbeableto
understandthelivemarketanalysistoanextent,whichinturn
helpsyourtestingprocessandmakesiteasier.
Aboutauthor:ThisisguestpostbyLaxmi.Sheishaving7+years
ofSoftwaretestingexperiencemainlyinBFSIdomain.Sheis
currentlyworkingasaSr.softwaretestengineerinoneofthetop
MNCs.
ThisisalltheinformationonInvestmentDomainandtesting
tipswithsimpletestingideasthatIwantedtoshare.As
always,hopingthatithelpsandwaitingtoanswerany
questionsyoumighthave.