Information Technology in Stock Exchange

Topics: Stock market, Stock exchange, Capital market Pages: 8 (2336 words) Published: November 22, 2011
An assignment
Application of Information Technology in Stock Exchange (Dhaka) Course no: PAD-122
Course title: Computer Application and Information Management Department of Public administration,
University of Dhaka

Submitted to:
Professor Sofiullah
Course Lecturer of PAD- 122, Department of public administration University of Dhaka
Submitted by:
Mehedi Hasan
Roll no: 49
1st year, 2nd semester, 4th batch
Session: 2009-10
Department of Public administration
University of Dhaka
Date of submission: 13-10-2010

◙ Introduction:
The information network of business relationships is perhaps the central element of the production technology of the 21st-century stock investment. Technology is a stock of specie, which tosses into head-tail outcomes. Thus, when online brokerage accounts were introduced, this new form of investment revolutionized the stock market trading in both dimensions of volume and volatility. Yet, individual in Bangladesh cannot have free access to stock market trading other than by going through the brokerage stations, but substantially lower fees and commissions have opened up increased opportunity for every potential investor. Now, an individual can browse the Internet and go for the stock market information available on the webpage in order to have an instant informed decision about the investment. The surplus units of the society are not supposed to invest their money. So, they are often ready to supply their money to purchase securities from the capital markets. As a result stock exchange plays a crucial role to mobilize capital or the development of a capital market.

◙ Information technology:
Information technology is concerned with improvements in a variety of human and organizational problem-solving endeavors through the design, development, and use of technologically based systems and processes that enhance the efficiency and effectiveness of information in a variety of strategic, tactical, and operational situations. Ideally, this is accomplished through critical attention to the information needs of humans in problem-solving tasks and in the provision of technological aids, including electronic communication and computer-based systems of hardware and software and associated processes. Information technology complements and enhances traditional engineering through emphasis on the information basis for engineering.

◙ Stock Exchange:
Stock exchanges are formally organized secondary markets for financial assets that have already been issued in primary capital markets. Stock markets have become the hallmark of successful modern capitalist economies, despite the frequency of volatile price movements that lead to excessive speculation followed by panics and despite repeated scandals. They play an important role, however, for both the primary capital market and the mobilization of bank credit within any economy, basically by providing liquidity for the initial investors in government or corporate debt or in corporation stock. The daily pricing of all such financial products on a stock exchange also makes them ideal instruments as collateral for loans. In sum, stock exchanges are important complements to the efficient operation of the rest of an economy's financial sector.

◙ Dhaka Stock Exchange in Brief:
The history of the DSE is not so long. This is the prime bourse of Bangladesh. The legacy of it goes back to 28 April 1954. However,      its formal trading began in 1956 as East Pakistan stock exchange Association Ltd. The name of the stock exchange was once again changed to DSE Ltd. in 1964. The service was uninterrupted upend till 1971. The trading was suspended during the liberation war and resumed in 1976 with the change in economic and financial policy of the government. Since then the bourse did not look back and continued its journey contributing to the development activities of the nation. Nowadays, the DSE is the prime bourse of the country....

References: ♦ Anon. 2007a. Annual Report 2007, Central Depository Bangladesh Ltd., Dhaka, Bangladesh.
♦ Anon. 2007b. Profile of Dhaka stock exchange, Document Produced Dhaka stock exchange, Dhaka, Bangladesh.
♦ Anon. 2007c. Monthly Review 2007, Dhaka stock exchanges June: 10. Colvin, G. 2000.
♦ The Net 's Hidden Profits. Fortune Magazine: 104, April. Coward, C. 1997.
♦ Black Enterprise Magazine, 1 October. Frank, H.; and Althoen, S.C. 1994. Statistics: Concepts and Application.
♦ Cambridge University Press, New York, NY, USA. Hutzschenreuter, T. 2001.
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