SRS - Stock Master

Software Requirements Specification

For

Stock MasterVersion 1.0 approved

Prepared by: - Naveen Krishnan H

Aishwarya PP

Archana Raveendranath

Iswariya S

M G College of Engineering, TVM

15/10/2009

Software Requirements Specification for Stock Master Page ii

Table of ContentsTable of Contents....................................................................................................................... ii

1. Introduction.......................................................................................................................... 1

1.1 Purpose..................................................................................................................................1

1.2 Some Background information...............................................................................................1

1.2.1 Stock Market......................................................................................................................1

1.2.2 Stocks................................................................................................................................1

1.2.3 Share transactions...............................................................................................................2

1.2.4 EPS ratio and P/E ratio.......................................................................................................2

1.3 Project Scope.........................................................................................................................3

1.3.1 Focuses on Equity Shares...................................................................................................3

1.3.2 Centered around BSE and NSE..........................................................................................3

1.3.3 Market indications cannot be perfect...................................................................................3

1.4 References..............................................................................................................................4

2. Overall Description.............................................................................................................. 4

2.1 Product Perspective................................................................................................................4

2.2 Product Features.....................................................................................................................4

2.3 Operating Environment..........................................................................................................5

2.4 Design and Implementation Constraints..................................................................................5

3. System Features................................................................................................................... 5

3.1 Client Registration.................................................................................................................5

3.2 Collecting Stock rates.............................................................................................................6

3.3 Assist in share transactions.....................................................................................................7

3.4 Process stock rates..................................................................................................................7

3.5 Client Behavioral statistics.....................................................................................................8

4. External Interface Requirements........................................................................................9

4.1 User Interfaces........................................................................................................................9

4.2 Communications Interfaces.....................................................................................................9

Department of CSE, MG College of Engg, TVM

Software Requirements Specification for Stock Master Page iii

5. Other Nonfunctional Requirements....................................................................................9

5.1 Security Requirements............................................................................................................9

5.2 Safety Requirements...............................................................................................................9

5.3 Software Quality Attributes....................................................................................................9

6. Conclusion.......................................................................................................................... 10

Appendix A: Glossary.............................................................................................................. 11

Appendix B: DFDs................................................................................................................... 12

Context level DFD..................................................................................................................... 12

Client Registration..................................................................................................................... 12

Access Stock Rates.................................................................................................................... 13

Share transaction........................................................................................................................ 13

Process stock rates..................................................................................................................... 14

Client details.............................................................................................................................. 14

Appendix C: Gant chart.......................................................................................................... 15

Appendix D: Database field specification................................................................................... 16


Software Requirements Specification for Stock-Master Page 1

1. Introduction

1.1 Purpose

Stock Master is software intended for use by a Stock-broker or a Stock-sub broker. Through our project we are aiming to automate all the major process a Sub-broker is supposed to do. This includes getting current stock values, logging details of the stock rates, assist in transaction and give adequate advice and suggestions about a particular stock.

Before going into the details, some technical details regarding the stock-market are listed below

1.2 Some Background information

1.2.1 Stock Market

The Stock Market is either a private or public market where stock or shares of the companies are sold or traded by share holders.

There are many stock markets in India some of the major stock markets are NSE (National Stock Exchange), BSE (Bombay Stock Exchange) and MCX (Multi Commodity Exchange of India) for commodity exchange. There are also 21 RSEs (Regional Stock Exchanges) like Cochin Stock Exchange, Allahabad Stock Exchange, and Madras Stock Exchange etc.

1.2.2 Stocks

A stock share, a legal document from the company or simply referred as 'stock certificates', will entitle you to be a co-owner of that company. Stock are also called as equity, shares etc. A company issues stocks in-order to raise a required amount of capital.

There are different types of shares as well, they are:-

Equity shares are standard shares with no special rights or restrictions. They have the potential to give the highest financial gains, but also have the highest risk. Ordinary shareholders are the last to be paid if the company is wound up.

o Preference shares typically carry a right that gives the holder preferential treatment when annual dividends are distributed to shareholders. Shares in this category have a fixed value, which means that a shareholder would not benefit from an increase in the business' profits. However, usually they have rights to their dividend ahead of ordinary shareholders if the business is in trouble. Also, when a business is wound up, they get preference over equity share holders in the process of repay of the par or nominal value of shares.



o Cumulative preference shares give holders the right that, if a dividend cannot be paid one year, it will be carried forward to successive years. Dividends on cumulative preference shares must be paid, despite the earning levels of the business.

o Redeemable preference shares come with an agreement that the company can buy them back at a future date - this can be at a fixed date or at the choice of the business. A company cannot issue only redeemable shares.

1.2.3 Share transactions

The General Public cannot buy or sell shares directly, but they have to do so through some share-brokers or through some sub-brokers. The share-brokers are registered in the SEBI (Securities and Exchange Board of India). These sub-brokers carryout their client’s buying or selling stocks. For this they charge a brokerage of up to 5% of the transaction.

Share transaction can be done in 2 ways; through physical shares or share certificates or by using Demat (dematerialized) shares. In Demat shares; we use a soft copy of the share to trade. Here also some physical processing is required, but this provides many advantages in storing and allows the share holder to sell any amount of stock at a time.

Fig. How shares are traded

1.2.4 EPS ratio and P/E ratio

EPS (Earnings Per Share) ratio is the amount of net earning divided by the number of outstanding shares. . Dividends are portions profit of the company that it wishes to give.



Dividends are given to each share holder of the company in accordance with the number of shares he/she holds.

For example if a company decides to part with 1000 rupees of profit to its share holders. Suppose if there are 10 share holders then EPS will be

1000/10 = 100 rupees.

Thus EPS = Net Earnings / Outstanding Shares

P/E (Price to Earnings) ratio is the primary tool used by many investors while investing. It is the relationship between stock price and the profit of the company.

P/E ratio = Stock price/ EPS

Thus in the above example if the stock price of the company is 20 rupees, then P/E ratio of that share is 20/10 = 2.

1.3 Project Scope

In this section the scope of the project we are designing is mentioned. Here we list the major inclinations of our project and what area it gives importance and what area of stock market dealing it is not associated with.

1.3.1 Focuses on Equity Shares

There are a lot of methods of investing money in a stock market; through equity shares, preference shares, mutual funds etc. But our intended project is exclusively for equity shares, its processing and transaction. This is due to the fact that, most of the volume traded stock is of equity nature. Also Equity share is the one focused by many Stock-brokers.

1.3.2 Centered around BSE and NSE

We are planning to use the 2 biggest stock exchanges in India; they are NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). And the indices used here are the BSE sensitive Index (Sensex) and National Stock Exchange Fifty (Nifty). The Regional Stock Exchanges are out of the scope of our project. We decided this, as majority of equity share transactions occur in NSE and BSE and also those two are mostly covered by all stock-brokers.

1.3.3 Market indications cannot be perfect

A good stock broker must not only do the share transactions, but also he must give suggestions and advice to their clients. So we are providing many tools for making those suggestions and help the broker to make more accurate predictions. We provide the broker with the P/E ratio (Price to Earnings ratio), and the PEG ratio (Price to future growth ratio). Also our proposed system provides the stock broker with a graph disclosing the trends of the stock.



1.4 References

http://users.csc.calpoly.edu/~jdalbey/308/Deliver/SRSformat.html

http://www.indiahowto.com/peg-price-projected-growth-ratio.html

http://stockmarketwiki.blogspot.com/2009/01/types-of-shares-by-group.html

http://www.bseindia.com/about/abintrobse/listsec.asp

http://www.requirementsauthority.com/functional-and-non-functional.html

http://en.wikipedia.org/wiki/Permanent_account_number

Software Engineering: A Practitioner's Approach by Roger S Pressman

2. Overall Description

2.1 Product Perspective

Stock Master is aimed to provide most if not all the data a typical stock broker requires. Also stock master saves abstract values of stocks, which are used later for statistical analysis. Similar is done with clients to make future client interactions better.

2.2 Product Features

Our proposed system supports a sub-broker or a share-broker in following ways

Automate Client Registration.

Obtain Current stock rates and log the required info.

Share transactions.

Give statistical data on a particular stock.

Provide client’s behavioral characteristic for better client interactions.



2.3 Operating Environment

We are planning to use Microsoft Visual Studio 2005 and C# language for implementing the design. Thus the required OS is windows ME/XP/server 2003/vista. This is due to the restriction in the .NET framework 2.0.

2.4 Design and Implementation Constraints

We are planning to implement Stock master using Visual Studio 2005 and SQL server. .NET framework 2.0 is used. We are saving abstract values of stocks in a database, also the client data and behaviors are also logged. So there must be adequate disk space for the databases. About 500MB data is sufficient in testing phases, but needs to be increased as the number of clients increase.

3. System Features

In this section all the system features mentioned in section 2.2 is described in detail.

3.1 Client Registration

3.1.1 Description and Priority

In this phase new clients are registered. When a person wants to invest his/her money in stock-market, he does so through the stock-broker. The stock broker will carryout the intention of the client thus registered for a brokerage. This is feature of medium priority as the frequency of client registration is not as high as transaction rates of stocks by a stock broker.

3.1.2 Stimulus/Response Sequences

This action is triggered by the clicking of “new registration” option. This will take the operator to a new page which will request the client details.

The client registration requires following information:

Client’s full name

Address for communication

Permanent Account Number (PAN Card number)

Bank details (for issuing cheques )

After entering these information the output will be

Client account number

A Demat account number



3.1.3 Functional Requirements

The functional requirements of the client registration process includes the following

REQ 1. The Client name should be alphabets and spaces. There should not be any numbers, or other ASCII characters etc

REQ 2. Address of Communication is established by 4 lines, each 25 characters long ( house-name/ house number, street name/ place/ state) . The address needs to inputted accordingly.

REQ 3. PAN card number should be of the form AAAA9999A, that is first 5 characters are letters, then 4 digits and last character is a letter. Any input violating this structure need be shown as invalid.

REQ 4. Bank details. The money obtained from selling stocks is issued by stock-broker in the form of cheques. So the user must give the name of the bank whose cheque must be used.

REQ 5. Client ID and Demat account number are later on used for quick data retrieval. The Demat account number is serial number of the client in the client database. The Client ID is structured as AADDMMYYYY99. The first two are letters, which are the first two letters of the client, then the date, month and year are used. The last two characters are digits.

3.2 Collecting Stock rates


This is a process of medium priority. A stock broker needs to get the latest stock value before share transaction. The value of share fluctuates and thus rapid accessing of the values is required. Also the opening, closing, intraday high and low are found. Also the dividends given out by the companies are logged.


This feature is invoked automatically. But it can be made to access manually also. This is done when a client wants to buy or sell a particular stock.


The various functional requirements of this phase are:-



REQ 1. The stock rates logged in a database. Here intraday high and low are also stored. The closing rates are used for constructing the graph.

REQ 2. The graphical representation needs to be current and older values must be periodically updated with newer ones.

REQ 3. The dividends issued by companies are also saved for making transaction decisions.

3.3 Share transaction


Stock master assists the stock broker in processing the share transaction of clients. Here the client ID is inputted. Corresponding Demat account number is generated and checked before transaction is done. Then the whole transaction amount and brokerage is calculated and the Demat account is updated.


This feature needs to be invoked by the operator. Here the client ID obtained at Client Registration phase is the input. The output is two values, one the total transaction amount and the second is the brokerage of that transaction.


REQ 1. Here the Client ID needs to be checked before proceeding. The Client ID as mentioned before is of the form AADDMMYYYY99, in which first two characters are the first 2 letters of the client name, then the date at which registration took place and 2 more digits. An input violating above said format needs to be rejected.

REQ 2. Current value of the stock is to be used in calculation

REQ 3. Transaction amount is simply number of share multiplied by the current stock rate.

REQ 4. Brokerage is the obtained by multiplying the transaction amount by brokerage percentage.

REQ 5. There must be option to set and update the brokerage percentage.

3.4 Process stock rates


A good stock broker does not do share transaction alone, but he is supposed to give advice and suggestion to his clients. But this phase is a low priority task. Stock master saves the opening, closing, intraday peak and intraday low values of the stocks. Thus it can provide the stock-broker with 2 representations for making his suggestions.



First one is a tabular representation and the second is the graphical representation of the closing rates.


This facility needs to be invoked. A stock-broker can use this utility before carrying out a transaction and can advise the client about the risks of that particular transaction. Also this utility helps the Stock broker to arrive at his suggestion quickly and make more accurate predictions.


REQ 1. The starting, closing and intraday high and intraday low of a stock needs to be stored in the database.

REQ 2. Dividend released by each company is saved and this helps to provide with the client adequate information about the company.

REQ 3. Tabular representation gives the current value of the stock, the highest and lowest values recorded of that particular stock and the P/E ratio of that stock.

REQ 4. Graphical representation is done by plotting time along x axis and stock value along the y axis. Here the closing rates are used for plotting.

3.5 Client Behavioral statistics

3.5.1 Description and Priority:

For effective and efficient stock transactions, we need good interaction between the clients and the stock-broker. In this phase we address that. The details that the client enters are stored in a database along with the Client ID. Now there is another database, which has the Demat account number of the client and in it the transaction details are stored. This helps the stock broker to establish better relations with the clients. This is a low priority phase.


This function is invoked by the stock broker. The input here is the Client ID or the Demat account number of the client. Output is the details obtained from the 2 tables.


REQ 1. The Client ID needs to be of the form AADDMMYYYY99 and inputs of other formats needs to be rejected right away.

REQ 2. The details from both tables needs to be displayed in a single form or must be accessible from one form.



4. External Interface Requirements

4.1 User Interfaces

Stock Master requires a monitor with large enough pixel size in order to display the graph. The input units are standard QWERTY keyboard and mouse. No additional input or output hardware is mandatory.

4.2 Communications Interfaces

Stock master requires an internet connection with sufficient speed to get the current stock values. The stock index values are obtained periodically and when transactions are made. Thus in order to complete the transactions quickly an internet connection with broadband or near broadband speed is mandatory.

5. Other Nonfunctional Requirements

5.1 Security Requirements

Stock master is a software in which sensitive details of clients are stored. Thus the information in them needs to be protected from intrusion and unauthorized modifications. For this the databases are made locked and can only be edited by the administrator. Also there Authorization login when the software starts. Also, to view the client details, Client ID is required and thus the data is protected.

5.2 Safety Requirements

The idea of transaction processing is required in this. The transaction made must reflect in the databases. There should not be any data loss while a share is bought or sold. Also the database needs to be used in such a manner so as to eliminate data loss or loss of data integrity.

5.3 Software Quality Attributes

Stock Master is reusable and can be extended to other exchanges or to other kinds of stocks. The testing of Stock master requires traversing of all forms, stress testing and Authorization tests.



6. Conclusion

The analysis and design of the project Stock master is completed and all the necessary design specifications and functionalities are documented in an SRS document. Also the Data Flow diagram, The Gant chart, and the design of the database are attached as appendices.

The project is now ready for the subsequent stages in the software lifecycle, that is coding and testing.



Appendix A: Glossary

Term Definition

NSE National Stock Exchange

BSE Bombay Stock Exchange

Demat shares Dematerialized shares

RSE Regional stock Exchanges

MCX Multi Commodity Exchange

Sensex BSE Sensitive index

Nifty NSE fifty, index of 50 major shares registered with NSE.

SRS Software Requirements Specification

ID Identifier, usually an alphanumeric string which is used to identify someone or something

PAN Permanent Account Number. This is issued by the government of India to all tax payers and to all those who wish to take part in business schemes like stock trading.

P/E ratio Price to Earnings ratio. This is a value used by many investors. Generally P/E ratio is used to make a rough prediction about a company and earnings received by the share holders from that company in recent times.

EPS ratio Earnings Per Stock ratio. This the net earning by the number of outstanding shares.



Appendix B: DFDs

Context level DFD

Client Registration



Access Stock Rates

Share transaction



Process stock rates

Client details



Appendix C: Gant chart



Appendix D: Database field specification

Client Table 1

No. Field Name Range of valid values for the field

Remarks

1 Client ID AADDMMYYYY99 Primary field

2 Demat number 7 letter digit Starts at 0000001

3 Client Name 25 characters long Abbreviated if space not sufficient.

4 Addline1 25 characters long




8 PAN 10 character long PAN number

9 Bank name 25 character long

Client Table2

Demat number 10 character long Primary field

Date Date

Share name 20 character long

No: of shares 6 letter digit

Flag 1 character long 0 = buy and 1 = sell

Dividend Currency The total dividend received by the client.



Stocks table 1


Remarks

1 Stock id 1 to 10000 Primary field

2 Stock Name Up to 15 characters in length.

Special characters like underscore are not allowed.

3 Market NSE or BSE

4 Peak value Currency The highest value encountered

5 Lowest value Currency The lowest value encountered

6 Current value Currency The present value of the stock

Stocks table 2


Remarks

1 Stock id 1 to 10000 Foreign key

2 Date date

4 Day-in-price Currency

5 Day-out-price Currency

6 Peak value Currency Intraday peak

7 Minimum value Currency Intraday low


SRS - Stock Master

Documents

nonfunctional requirements

security requirements

safety requirements

stock market

stock master page

process stock rates

college of engg

software quality attributes