AUTOMATION SHARE ALLOCATION RECORDS OPERATION

Postgraduate

ABSTRACT

The stock exchange is seen as an everyday part of life in any economy is it developed or third world countries. As the world is gradually moving to the information age which a major characteristic of this age is speed; speed in sending messages, speed in healthcare delivery, speed in banking, there is a need for investors to be able to monitor their investments with speed. In this work, we introduce ASARO, an application for shares allocation record and monitoring the activities that go on in the stock exchange. It allocate units of shares in the stock market using the data that has been pooled to calculate the values of stock in an investor’s portfolio all in real-time. It is hoped that this will help brokers allocate units of shares and records operation of new and existing.


INTRODUCTION

The initial offering of stocks and bonds to investors is done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors that, as in all free markets, affect the price of stocks. The stock exchange helps companies generate capital. As a primary market, it provides an avenue for them to sell new shares and bonds to investors. The companies can then use the proceeds from these sales to expand their businesses, develop new products, buy new equipment etc. Nwaiwu (2004) says that the stock market also provides a means for investors to trade in the shares of companies they own among themselves. In other words, it serves as a secondary market. For example, a person who bought the shares of a company at a particular price may sell it to another investor. The investors are the ones who profit from this type of trade – companies do not. The stock exchange also has the function of upholding rules and regulations so that shady people do not cheat investors of their hard earned money. It gives investors security. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities. 

Nyong (1997) said that the stock market is viewed as a complex institution imbued with inherent mechanism through which long-term funds of the major sectors of the economy comprising households, firms, and government are mobilized, harnessed and made available to various sectors of the economy. The rate at which the values of stocks and bonds for stocks rise and fall can be very hard to follow for various investors which can lead to the loss of valuable money that can be made through either the sale or buying of shares. While only stock brokers are allowed to trade, it is the investors that tell them what to trade with therefore if the investors do not know what to buy and to sell then it can be hard for them to make money in the stock exchange. In summary the problem is the inability of shareholders to see and understand the rise and fall stocks and share prices as it relates to their various investments. The aim of this paper is to develop a prototype of an application that is able to monitor the trading floor of the Nigerian Stock Exchange as well as the stocks and shares in an investor’s portfolio.


STATEMENT OF THE PROBLEMS

Allocation and operations have been the major problem of stock exchange especially at the stock markets level. Other challenges are;

·        Lack of proper documentation of investor’s

·        Inadequate data monitoring on capital investment (shares) of each investors

·        Loss of data during maintenances

·         Overall process and procedure of the existing system are not flexible.

    AIMS AND OBJECTIVES OF THE STUDY

The main aim of this project is to develop an Automated Share Allocation Records Operation for investor’s at Nigeria Stock Exchange.

Objectives:

·        To promote investment by identifying and financing lucrative business opportunities

·        Easing the process of share unit calculation and documentation.

·        Mobilizing savings

·        Allocating resources efficiently

·        Helping diversify risks and facilitating the exchange of goods and services.

·        Keep track and monitoring of investor’s record and shares.