The use of computers to buy and sell investments
It is well known that the investment management industry uses computers to buy and sell investments.
There are obvious advantages for doing this, but at the same time, there are also weaknesses and
disadvantages to this practice.
Your task is to conduct research where you look at the circumstances and issues related to professionals
in the investment management industry using computers to buy and sell investments, as well as using
the computer to make buy and sell decisions. How are these tools being used and what are the issues
related to using them?
The starting point to your research may include some of the following items:
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Electronic communications networks
Electronic trading systems
Electronic trading
Decimalization of stock quotes
Online trading
National Association of Securities Dealers Automated Quotation system
Extended trading hours/after hours trading
Circuit breakers
Flash crash
Algorithmic trading strategies
Automated execution programs
High-speed trading/High-frequency trading
Why is a consolidated audit trail for all stock trading being suggested?
Automated stop-loss orders and other automated market orders
Robo-trading
Computer-driven trading
Credit Suisse fiasco
May 2010 and Waddell & Reed
SmartWB
Rambus incident (RMBS)
Your task is to search the Internet, magazines and/or journals in order to find 3 articles related to this
topic area. You cannot use an article that someone else in the class is using, even if it appears to come
from a different site (since sometimes, web sites will "share" articles or post something that was
reported elsewhere.).
Once you find the articles that you wish to use, please visit the class wiki found on KSU Online. Click on
the link “Electronic Trading Articles Reservation Page”. Information on that web page will tell you how
to “reserve” an article for your exclusive use (so that no one else in the class can use the article you
selected). Obviously, this means that article reservations are made on a first-come, first-served basis so
do not delay in making your reservation. An example reservation has been provided on the class wiki.
Once you have made your reservations, it will now be time to create the report that you will hand in as
part of this project.
Report Layout
1.
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3.
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5.
Use a 11 point font size
Page margins should be 1 inch top, bottom, left and right
Single space within paragraphs
Double space between paragraphs
Use section headings that contain the title of the article being reported on in that particular
section (bold title)
6. The footer of each page in the report should be the page number.
The Report Cover Page
The information found on the cover page should be:
1) A suitable title reflecting the work contained within your packet
2) Your own first and last name
Make sure that this is spaced out on the cover page so that it appears professional. Your entire packet
should be stapled together.
The Report Body
The report itself should be professionally written under the assumption that you are giving your results
to your supervisor/boss. It should not appear to be academic work (don’t make it look like an
assignment: make it look “business-like” and professional.
The report should contain:
a. An introductory paragraph that briefly explains your research and its purpose. Length:
no more than 2 sentences
b. Summary for article #1
i. Begins with a section heading containing the title of the article you are
summarizing (bolded).
ii. In your own words, summarize the main points found in the article.
1. Make sure that you provide enough information that I know that you
understand what you have read.
2. Provide examples to illustrate your points
3. Make sure that it is very clear what someone reading this article should
learn/take away from the article.
iii. Required length: your summary for article #1 must be at least ¾ of a page in
length. I would probably write more, rather than less (hint: if you strive to reach
8/10 of a page, then there is no question that you have written ¾ of a page).
1. If you are writing only ¾ of a page for this article, then that information
should be found in 1-2 paragraphs.
2. If you are writing more than ¾ of a page for this article, then 2-4
paragraphs would be appropriate.
iv. If your summary for this article is less than the required length, then I will try to
determine how much you have written (percent-wise) and then you will get a
percentage of those points for that article. For example, if your article summary
is 80% of the required ¾ of a page length, then you will get, at most, 80% of the
points possible for that article.
v. In 1-2 paragraphs (no more than 2 paragraphs), summarize the main points
found in the article.
c. Summary for article #2
i. Begins with a section heading containing the title of the article you are
summarizing (bolded).
ii. In your own words, summarize the main points found in the article.
1. Make sure that you provide enough information that I know that you
understand what you have read.
2. Provide examples to illustrate your points
3. Make sure that it is very clear what someone reading this article should
learn/take away from the article.
iii. Required length: your summary for article #2 must be at least ¾ of a page in
length. I would probably write more, rather than less (hint: if you strive to reach
8/10 of a page, then there is no question that you have written ¾ of a page).
1. If you are writing only ¾ of a page for this article, then that information
should be found in 1-2 paragraphs.
2. If you are writing more than ¾ of a page for this article, then 2-4
paragraphs would be appropriate.
iv. If your summary for this article is less than the required length, then I will try to
determine how much you have written (percent-wise) and then you will get a
percentage of those points for that article. For example, if your article summary
is 80% of the required ¾ of a page length, then you will get, at most, 80% of the
points possible for that article.
v. In 1-2 paragraphs (no more than 2 paragraphs), summarize the main points
found in the article.
d. Summary for article #3
i. Begins with a section heading containing the title of the article you are
summarizing (bolded).
ii. In your own words, summarize the main points found in the article.
1. Make sure that you provide enough information that I know that you
understand what you have read.
2. Provide examples to illustrate your points
3. Make sure that it is very clear what someone reading this article should
learn/take away from the article.
iii. Required length: your summary for article #3 must be at least ¾ of a page in
length. I would probably write more, rather than less (hint: if you strive to reach
8/10 of a page, then there is no question that you have written ¾ of a page).
1. If you are writing only ¾ of a page for this article, then that information
should be found in 1-2 paragraphs.
2. If you are writing more than ¾ of a page for this article, then 2-4
paragraphs would be appropriate.
iv. If your summary for this article is less than the required length, then I will try to
determine how much you have written (percent-wise) and then you will get a
percentage of those points for that article. For example, if your article summary
is 80% of the required ¾ of a page length, then you will get, at most, 80% of the
points possible for that article.
v. In 1-2 paragraphs (no more than 2 paragraphs), summarize the main points
found in the article.
e. Conclusion
i. Your report should end with a conclusion/summary section. EVERYTHING in this
section should be in your own words and tie everything together. The summary
should include:
1. At least one sentence indicating how the investment management
industry uses computers when buying and selling investments.
2. At least one sentence that summarizes article #1.
3. At least one sentence that summarizes article #2.
4. At least one sentence that summarizes article #3.
5. 1-2 sentences that ties everything together. What are you trying to get
across to the reader and others hearing your presentation?
f. The Appendix to your report
i. After your conclusion, insert a page break in your report.
ii. Create heading text of Appendix
iii. Below this text, create a citation list of the works/articles used in your report.
iv. Following this page, please attach hard-copy printouts of each of the articles
that you used in your report. Article #1 should appear first, followed by article
#2, followed by article #3.
The Report Presentation
Each student should plan on giving a 8-10 minute presentation summarizing the articles that they
researched. A 8-slide PowerPoint presentation should also be developed and explained.
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Slide #1 should contain the title of your presentation and your name
Slide #2 should be a listing of the articles that you researched.
Slide #3 should be a summary of article #1 covering the most important points found in your
article. Why is this important?
Slide #4 should be a summary of article #2 covering the most important points found in your
article. Why is this important?
Slide #5 should be a summary of article #3 covering the most important points found in your
article. Why is this important?
Slide #6 should be an overall summary of your presentation. What do you hope that someone
learns as a result of your presentation?
Slides #7 and #8 should contain 2 questions that summarize the material that you researched
and presented. You will use these as a teaching tool where members of the class will answer
the questions that you ask. These also have a chance of appearing on the final exam.
o Display a multiple choice question on each slide.
o Animate in 4 answer choices.
o Members of the class will answer the question.
o After they have answered the question, the correct answer should animate in.
Presentation details
1.
You do not need to dress up to make this presentation. Your regular clothes will work.
2. You will need to stand in front of the class to make this presentation. You will show and run the
PowerPoint slides from the teacher’s workstation. The files you need should already be loaded
onto your USB key.
3. The actual presentation will be assessed and evaluated using the Oral Presentation Evaluation
Form used by the College of Business.
Deliverables
1. A copy of the following should be uploaded to the class KSU Online dropbox by 10:30am on the
date we are making presentations in class (do not zip up any of these: just make multiple file
submissions)
a. Your report as it appears in a word processing document.
b. Your PowerPoint presentation
2. Your oral presentation