computer project 2008-2009

8/8/2019 Computer Project 2008-2009

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THE VIRTUAL MONEYBAZAAR


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Certificate of Originality

This is to certify that Shashank Shrivastavaand Jairaj Desai of class Xth have developed the

project titled SavJai Virtual Money Bazaar

under my supervision for the purpose of the Indian

Certificate of Secondary Education (ICSE) Board

Exams and to my knowledge the project done is

original and has not been submitted to the

institution before.

___________________Supervisors Signature


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Acknowledgement

We find no words to express our gratitude to ourguides Ms.Darshana, Ms.Arpana, Ms.Ashi and

Ms.Ratna who taught us BlueJ and who provided

us with valuable guidance for completing our

project work.

The website www.moneycontrol.com and theWall Street Survivor have played a very important

role in providing valuable information about the

share market.

All these have no less a part to play in

mentoring the project than ours.

Thanking them all once again!

Shashank S.Srivastava

Jairaj C. Desai


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Project overview

The Project is aimed towards the implementation of a virtual

money bazaar ie. A virtual stock market that involves facilities

such as trading , news and analysis , stock prices , portfolio

management and account management which are facilitated by

an account or a profile created by every user.Further details can

be had by delving into the document.The money being

represented in the project is virtual in nature.

Goals

Writing a most basic project for a money bazaar thatwould facilitate almost all the needs of a stock

exchange.

To test various ways of managing a stock exchange.To spread stock market awareness among the

people.

To enable people to learn the fundamentals ofstock marketing.


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Bibliography

Main Site Reference:

http://www.moneycontrol.com/http://www.wallstreetsurvivor.com/

Important site references:

http://www.sharekhan.com/ http://www.scottrade.com/

Normal Site References:

http://www.investsmartindia.com/ http://www.icicidirect.com/ http://www.equitymaster.com/

Magazine References:

Dalal Street Outlook Flash News Capital Market

Newspaper References: The Economic Times The Mint


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Class Hierarchy

SAVJAI_VIRTUAL_MONEY_BAZAAR

MAINMENU

Accessportfolio createnewportfolio

dashboard

research

rank

trade

order historyMessageBoard

SymbolLookUpCompanyProfile boardofdirectors

UpdateProfilesCalculateCurrentValue

TodayDate


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Main Menu

start

Options are printed asking for

The users choice

If choice is 1 terminal window to accessportfolio is shown

If choice is 2 terminal window to create

a portfolio is shownIf choice is 0 terminal window which

ends the program is shown

end


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access functionsstart

method dashboard( ) options are shownAnd the choice is

Accepted

If choice is 1 profile is shown

If choice is 2 --- portfolio summary is shownIf choice is 3 --- profile editing optionsIf choice is 0 --- main menu is shown

Method trade( ) options are shownAnd the choice is

Accepted

If choice is 1 --- symbol look-upIf choice is 2 --- make a tradeIf choice is 3 --- order history

If choice is 0 --- main menu is shown

Method research( ) options are shown

And the choice isAccepted

If choice is 1 --- market summaryIf choice is 2 --- company informationIf choice is 3 --- rankings

If choice is 0 --- main menu is shown

Method messageboard( ) user is asked to

write his message

and the existingmessages areshown on thescreen

method aboutus( )


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General introduction


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What is a stock Market ?

A stock market, or equity market, is a private or public market for thetrading of company stock and derivatives of company stock at an

agreed price; these are securities listed on a stock exchange as well

as those only traded privately.

What is the Importance of a Stock

Market ?

The stock market is one of the most important sources for companies to raise money.

This allows businesses to be publicly traded, or raise additional capital for expansion byselling shares of ownership of the company in a public market. The liquidity that anexchange provides affords investors the ability to quickly and easily sell securities. Thisis an attractive feature of investing in stocks, compared to other less liquid investmentssuch as real estate.

History has shown that the price of shares and other assets is an important part of thedynamics of economic activity, and can influence or be an indicator of social mood. Aneconomy where the stock market is on the rise is considered to be an up comingeconomy. In fact, the stock market is often considered the primary indicator of acountry's economic strength and development. Rising share prices, for instance, tend tobe associated with increased business investment and vice versa. Share prices also affectthe wealth of households and their consumption. Therefore, central banks tend to keep aneye on the control and behavior of the stock market and, in general, on the smoothoperation of financial system functions. Financial stability is the raison d'tre of centralbanks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collectand deliver the shares, and guarantee payment to the seller of a security. This eliminatesthe risk to an individual buyer or seller that the counterparty could default on thetransaction.

The smooth functioning of all these activities facilitates economic growth in that lowercosts and enterprise risks promote the production of goods and services as well asemployment. In this way the financial system contributes to increased prosperity.

Relation of the stock market to the modern financial system

The financial system in most western countries has undergone a remarkabletransformation. One feature of this development is disintermediation. A portion of the


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funds involved in saving and financing flows directly to the financial markets instead ofbeing routed via the traditional bank lending and deposit operations. The general public'sheightened interest in investing in the stock market, either directly or through mutualfunds, has been an important component of this process. Statistics show that in recentdecades shares have made up an increasingly large proportion of households' financial

assets in many countries. In the 1970s, in Sweden, deposit accounts and other very liquidassets with little risk made up almost 60 percent of households' financial wealth,compared to less than 20 percent in the 2000s. The major part of this adjustment infinancial portfolios has gone directly to shares but a good deal now takes the form ofvarious kinds of institutional investment for groups of individuals, e.g., pension funds,mutual funds, hedge funds, insurance investment of premiums, etc. The trend towardsforms of saving with a higher risk has been accentuated by new rules for most funds andinsurance, permitting a higher proportion of shares to bonds. Similar tendencies are to befound in other industrialized countries. In all developed economic systems, such as theEuropean Union, the United States, Japan and other developed nations, the trend has beenthe same: saving has moved away from traditional (government insured) bank deposits to

more risky securities of one sort or another.

The stock market, individual investors, and financial risk

Riskier long-term saving requires that an individual possess the ability to manage theassociated increased risks. Stock prices fluctuate widely, in marked contrast to thestability of (government insured) bank deposits or bonds. This is something that couldaffect not only the individual investor or household, but also the economy on a largescale. The following deals with some of the risks of the financial sector in general and thestock market in particular. This is certainly more important now that so many newcomershave entered the stock market, or have acquired other 'risky' investments (such as

'investment' property, i.e., real estate and collectables).

With each passing year, the noise level in the stock market rises. Television commentators,

financial writers, analysts, and market strategists are all overtaking each other to get investors'

attention. At the same time, individual investors, immersed in chat rooms and message boards,

are exchanging questionable and often misleading tips. Yet, despite all this available information,

investors find it increasingly difficult to profit. Stock prices skyrocket with little reason, then

plummet just as quickly, and people who have turned to investing for their children's education

and their own retirement become frightened. Sometimes there appears to be no rhyme or reason

to the market, only folly.

This is a quote from the preface to a published biography about the long-term value-

oriented stock investor Warren Buffett.Buffett began his career with $100, and $105,000from seven limited partners consisting of Buffett's family and friends. Over the years hehas built himself a multi-billion-dollar fortune. The quote illustrates some of what hasbeen happening in the stock market during the end of the 20th century and the beginningof the 21st.

The behavior of the stock market


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NASDAQ in Times Square, New York City.

From experience we know that investors may temporarily pull financial prices away fromtheir long term trend level. Over-reactions may occurso that excessive optimism(euphoria) may drive prices unduly high or excessive pessimism may drive prices undulylow. New theoretical and empirical arguments have been put forward against the notionthat financial markets are efficient.

According to the efficient market hypothesis (EMH), only changes in fundamentalfactors, such as profits or dividends, ought to affect share prices. (But this largelytheoretic academic viewpoint also predicts that little or no trading should take placecontrary to factsince prices are already at or near equilibrium, having priced in allpublic knowledge.) But the efficient-market hypothesis is sorely tested by such events asthe stock market crash in 1987, when the Dow Jones index plummeted 22.6 percentthelargest-ever one-day fall in the United States. This event demonstrated that share pricescan fall dramatically even though, to this day, it is impossible to fix a definite cause: athorough search failed to detect any specific or unexpected development that mightaccount for the crash. It also seems to be the case more generally that many pricemovements are not occasioned by new information; a study of the fifty largest one-day

share price movements in the United States in the post-war period confirms this.[4]Moreover, while the EMH predicts that all price movement (in the absence of change infundamental information) is random (i.e., non-trending), many studies have shown amarked tendency for the stock market to trend over time periods of weeks or longer.

Various explanations for large price movements have been promulgated. For instance,some research has shown that changes in estimated risk, and the use of certain strategies,
http://en.wikipedia.org/wiki/Stock_market#cite_note-3#cite_note-3http://en.wikipedia.org/wiki/Stock_market#cite_note-3#cite_note-3http://en.wikipedia.org/wiki/Stock_market#cite_note-3#cite_note-3http://en.wikipedia.org/wiki/Stock_market#cite_note-3#cite_note-3


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such as stop-loss limits and Value at Risk limits, theoretically could cause financialmarkets to overreact.

Other research has shown that psychological factors may result in exaggerated stock pricemovements. Psychological research has demonstrated that people are predisposed to

'seeing' patterns, and often will perceive a pattern in what is, in fact, just noise.(Something like seeing familiar shapes in clouds or ink blots.) In the present context thismeans that a succession of good news items about a company may lead investors tooverreact positively (unjustifiably driving the price up). A period of good returns alsoboosts the investor's self-confidence, reducing his (psychological) risk threshold.

Another phenomenonalso from psychologythat works against an objectiveassessment is group thinking. As social animals, it is not easy to stick to an opinion thatdiffers markedly from that of a majority of the group. An example with which one maybe familiar is the reluctance to enter a restaurant that is empty; people generally prefer tohave their opinion validated by those of others in the group.

In one paper the authors draw an analogy with gambling. In normal times the marketbehaves like a game of roulette; the probabilities are known and largely independent ofthe investment decisions of the different players. In times of market stress, however, thegame becomes more like poker (herding behavior takes over). The players now must giveheavy weight to the psychology of other investors and how they are likely to reactpsychologically.

The stock market, as any other business, is quite unforgiving of amateurs. Inexperiencedinvestors rarely get the assistance and support they need. In the period running up to therecentNasdaqcrash, less than 1 percent of the analyst's recommendations had been to

sell (and even during the 2000 - 2002 crash, the average did not rise above 5%). Themedia amplified the general euphoria, with reports of rapidly rising share prices and thenotion that large sums of money could be quickly earned in the so-called new economystock market. (And later amplified the gloom which descended during the 2000 - 2002crash, so that by summer of 2002, predictions of a DOW average below 5000 were quitecommon.)

Irrational behavior

Sometimes the market tends to react irrationally to economic news, even if that news hasno real effect on the technical value of securities itself. Therefore, the stock market can

be swayed tremendously in either direction by press releases, rumors, euphoria and masspanic.

Over the short-term, stocks and other securities can be battered or buoyed by any numberof fast market-changing events, making the stock market difficult to predict. Emotionscan drive prices up and down. People may not be as rational as they think. Behavioristsargue that investors often behave irrationally when making investment decisions thereby
http://en.wikipedia.org/wiki/Nasdaqhttp://en.wikipedia.org/wiki/Nasdaqhttp://en.wikipedia.org/wiki/Nasdaqhttp://en.wikipedia.org/wiki/Nasdaq


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incorrectly pricing securities, which causes market inefficiencies, which, in turn, areopportunities to make money.

Crashes

Robert Shiller's plot of the S&P Composite Real Price Index, Earnings, Dividends, andInterest Rates, fromIrrational Exuberance, 2d ed.In the preface to this edition, Shillerwarns, "The stock market has not come down to historical levels: the price-earnings ratioas I define it in this book is still, at this writing [2005], in the mid-20s, far higher than thehistorical average. . . . People still place too much confidence in the markets and have toostrong a belief that paying attention to the gyrations in their investments will somedaymake them rich, and so they do not make conservative preparations for possible badoutcomes."

Price-Earnings ratios as a predictor of twenty-year returns based upon the plot by RobertShiller. The horizontal axis shows the real price-earnings ratio of the S&P CompositeStock Price Index as computed inIrrational Exuberance (inflation adjusted price dividedby the prior ten-year mean of inflation-adjusted earnings). The vertical axis shows thegeometric average real annual return on investing in the S&P Composite Stock PriceIndex, reinvesting dividends, and selling twenty years later. Data from different twentyyear periods is color-coded as shown in the key. See also ten-year returns. Shiller statesthat this plot "confirms that long-term investorsinvestors who commit their money toan investment for ten full yearsdid do well when prices were low relative to earnings atthe beginning of the ten years. Long-term investors would be well advised, individually,

to lower their exposure to the stock market when it is high, as it has been recently, andget into the market when it is low."Main article: Stock market crash

A stock market crash is often defined as a sharp dip in share prices of equities listed onthe stock exchanges. In parallel with various economic factors, a reason for stock marketcrashes is also due to panic. Often, stock market crashes end speculative economicbubbles.

There have been famous stock market crashes that have ended in the loss of billions ofdollars and wealth destruction on a massive scale. An increasing number of people are

involved in the stock market, especially since the social security and retirement plans arebeing increasingly privatized and linked to stocks and bonds and other elements of themarket. There have been a number of famous stock market crashes like the Wall StreetCrash of 1929, the stock market crash of 19734, the Black Monday of 1987, the Dot-com bubble of 2000.

One of the most famous stock market crashes started October 24, 1929 on BlackThursday. The Dow Jones Industrial lost 50% during this stock market crash. It was the


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beginning of the Great Depression. Another famous crash took place on October 19, 1987Black Monday. On Black Monday itself, the Dow Jones fell by 22.6% after completinga 5 year continuous rise in share prices. This event not only shook the USA, but quicklyspread across the world. Thus, by the end of October, stock exchanges in Australia lost41.8%, in Canada lost 22.5%, in Hong Kong lost 45.8%, and in Great Britain lost 26.4%.

The names Black Monday and Black Tuesday are also used for October 28-29, 1929,which followed Terrible Thursday--the starting day of the stock market crash in 1929.The crash in 1987 raised some puzzles-main news and events did not predict thecatastrophe and visible reasons for the collapse were not identified. This event raisedquestions about many important assumptions of modern economics, namely, the theoryof rational human conduct, the theory of market equilibrium and the hypothesis of marketefficiency. For some time after the crash, trading in stock exchanges worldwide washalted, since the exchange computers did not perform well owing to enormous quantity oftrades being received at one time. This halt in trading allowed the Federal Reserve systemand central banks of other countries to take measures to control the spreading ofworldwide financial crisis. In the United States the SEC introduced several new measures

of control into the stock market in an attempt to prevent a re-occurrence of the events ofBlack Monday. Computer systems were upgraded in the stock exchanges to handle largertrading volumes in a more accurate and controlled manner. The SEC modified the marginrequirements in an attempt to lower the volatility of common stocks, stock options andthe futures market. The New York Stock Exchange and the Chicago MercantileExchange introduced the concept of a circuit breaker. The circuit breaker halts trading ifthe Dow declines a prescribed number of points for a prescribed amount of time.

What is Margin Buying?

In margin buying, the trader borrows money (at interest) to buy a stock and hopes for it torise. Most industrialized countries have regulations that require that if the borrowing isbased on collateral from other stocks the trader owns outright, it can be a maximum of acertain percentage of those other stocks' value. In the United States, the marginrequirements have been 50% for many years (that is, if you want to make a $1000investment, you need to put up $500, and there is often a maintenance margin below the$500). A margin call is made if the total value of the investor's account cannot supportthe loss of the trade. (Upon a decline in the value of the margined securities additionalfunds may be required to maintain the account's equity, and with or without notice themargined security or any others within the account may be sold by the brokerage toprotect its loan position. The investor is responsible for any shortfall following suchforced sales.) Regulation of margin requirements (by the Federal Reserve) wasimplemented after the Crash of 1929. Before that, speculators typically only needed toput up as little as 10 percent (or even less) of the total investment represented by thestocks purchased. Other rules may include the prohibition offree-riding: putting in anorder to buy stocks without paying initially (there is normally a three-day grace period fordelivery of the stock), but then selling them (before the three-days are up) and using partof the proceeds to make the original payment (assuming that the value of the stocks hasnot declined in the interim).


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Learn About Java Technology

To date, the Java platform has attracted more than 6.5 million software developers.

It's used in every major industry segment and has a presence in a wide range of

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What Is JavaFX


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JavaFX extends your web experience by delivering rich media and content across all thescreens of your life. As users, you will be able to run JavaFX applications in a browser ordrag and drop them onto the desktop. It's a seamless interface!

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Allows users to view JavaFX applications in a browser or break free of thebrowser by dragging and dropping the same application onto the desktop

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computer project 2008-2009

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