Electronic communications networks, Financial Management

Electronic Communications Networks:

In traditional stock exchanges, the buying and selling of stocks take place at a physical location only and the members have to conduct trading activities during a specific period of time, or trading hours. It means the stock market is open during trading hours and is closed at all other times. But with increasing technology and communication facilities, the investors want unlimited time to trade the stocks. Electronic stock markets provide the facility to trade 24 hours a day, seven days a week, 365 days a year. It is also possible to trade anywhere in the world at any time through electronic exchanges. The main reason for major shifts in investor behavior and expectations are the Internet facility. Investors want instant trading and access-to-information capabilities that only online technologies can provide. Worldwide, markets and regulators have responded quickly to meet these requirements.

The electronic stock trading takes place with the help of ECNs. An ECN is an automated system of trading from a stock exchange. It was authorized in 1998, when the Congress and the Securities and Exchange Commission wanted to increase industry competition for automated trading. Without specialists or market-makers to coordinate trading activity in stock exchange, ECNs provide passive order-matching systems, where it matches buy and sell orders that have the same prices for the same number of shares. It also provides trading facility after trading-hours to book the orders. Some of the best-known ECNs operating today are Bloomberg's Tradebook, the Nasdaq-owned Instinet and BRUT, and Archipelago Exchange.

Posted Date: 9/10/2012 6:02:43 AM | Location : United States







Related Discussions:- Electronic communications networks, Assignment Help, Ask Question on Electronic communications networks, Get Answer, Expert's Help, Electronic communications networks Discussions

Write discussion on Electronic communications networks
Your posts are moderated
Related Questions
Select a business with which you are familiar and identify examples of customers using search, experience, and credence quality to evaluate the good or service

I am looking for assignment help on the topic FOREX. It would be great if anyone help me.

a) A product portfolio is the range of products that a business owns or the strategic business units owned by a firm. In bigger firms, like as Virgin, a broad product portfolio mig

A useful matrix for acquisitions is Ansoff Matrix (business strategy knowledge) Ansoff product/market growth strategies model is a framework for the creation of strategic optio

It is a long-term call option to purchase common stock at a specified price.

Different Cost of Capital with Changed Proportions: It is quite possible that the specific costs of capital of different sources may be affected by the amount of funds' raised and

Constant Duration To improve a buy and hold strategy a constant average duration is imposed for the managed portfolio during the full interest rate cy

All other things held constant, how would the market price of a bond be affected if coupon interest payments were made semiannually instead of annually? The majority of bonds i

Q. Reinforced concrete design? In BS8110 for reinforced concrete design, it is stated that longer tension lap lengths have to be provided at the top of concrete members. The mo

State about the capital structure of financial risk Frequently the funds supplied to a firm by lenders will change its financial structure and charge for the funds would be bas