16:332:568            Software Engineering of Web Applications

Group Project, Assignment #2

1.   XML Model of Stock Trading Information

The goal of this assignment is to develop the XML schemas for several documents used in stock trading:

  1. Request for a stock analyst's opinion
  2. Stock analyst's recommendation report
  3. Trading order
  4. Trading order ticket

To do this, you will need to find out which information goes into each of these documents and use a tool (described below) to design a graphical model of those documents.

Relevant papers for this project include:
What Determines the Market Impact of Stock Recommendations?
Sauder School of Business working paper by Xia Chen and Qiang Cheng, University of Wisconsin-Madison; University of British Columbia - Sauder School of Business; March 1, 2003.
... the paper proposes a simple framework for understanding the process that financial analysts use to issue stock recommendations...

More publications by Qiang Cheng

Also of interest: Analyst Recommendations: Do Sell Ratings Exist?
by Cory Janssen, Co-Founder, Investopedia.com

1.1   Modeling Stock Trading Information

①   Request for a stock analyst's opinion:   An investor considering trading some stock shares may contact a financial analyst and request a recommendation about particular stocks. To place the request for recommendation, the investor needs to specify certain information. Unfortunately, this is not standardized and you will need to figure out what information should go into a request for an opinion about a stock. Of course, the first thing to specify is the company name and ticker symbol for the planned stock trading. However, other information may also be helpful to the analyst to make the recommendation, such as the investor's investment outlook (long-term vs. short-term), etc. You may find helpful this form which specifies a Search for Analyst Reports. (You may wish to check also the rest of the Fidelity's Equity Research Library.)

②   Stock analyst's recommendation report:   An analyst report extracts a wide variety of market intelligence from marketing research studies to industry analyses, newsletters to global market reports. Investment research reports could be issued on companies, industries, geographic regions and product information. There is no standard way of reporting analyst recommendations. Here is one useful example from Yahoo! Finance: Analyst opinion for Google Inc.

Other relevant sources include:
StockScouter Ratings
StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return.
Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

MarketWatch.com: Analyst Recommendation
CMC Markets Stockbroking Ltd. recommendations from brokers and analysts
Google search for stock analyst opinions

③   Trading order:   A trading order is a client’s instruction to a broker to buy or sell a security. There are many types of order qualifiers that stipulate such things as the amount of time in which to leave an order in and at what price to execute an order.

Intro to Stock Trading, By Joshua Kennon, About.com
This basic tutorial on stock trading provides twelve different types of stock trading orders investors can use to help manage their portfolio.
See also: Quick Definitions of Stock Trading Orders     |     Use the Investopedia Stock Simulator to Practice Trading

④   Trading order ticket:   An order ticket is a form that is completed by a broker when receiving an order from a client. The order ticket will show the type of order (buy or sell), the number of shares, the security’s name, the price qualifications (such as market or limit) and the client’s name and account number.
(Check examples   here   and   here   and   here.)

2.   Relevant Information on XML Modeling

Once you develop a good understanding about what information should go into each of the above four documents, you will create an XML model of each document. Based on the model, the modeling tool will allow you to automatically generate the corresponding XML schemas.

For XML modeling you should use hyperModel, which is a plug-in that may be installed into an Eclipse workbench.

State of the art in XML modeling
Thinking XML: What do developers need to know about the various approaches to semantic transparency?
by Uche Ogbuji, Consultant, Fourthought, Inc.; 11 Mar 2005.

Design XML vocabularies with UML tools
Working XML: UML, XMI, and code generation, Part 1
by Benoit Marchal, Consultant, Pineapplesoft; 31 Mar 2004.

Google search XML Modeling

3.   Project Report Submission

Each group should email a single ZIP file containing the following:

  1. The model generated by hyperModel (save the model file from hyperModel)
  2. Four XML documents containing the XML schemas for the four stock-trading concepts (request, analyst report, order, and order ticket)
  3. PDF document of the report with the modeling diagrams generated using hyperModel (describe your diagrams and define each element and its attributes, don’t show only the diagrams)
As part of the report, include detailed breakdown of individual contributions of each team member to the project. Each student should quantify, as a percentage, his or her own contribution to each component of this assignment. If all team members feel that their contributions were about equal, just write down "Equal contributions."

Submission deadline: no later than 5:00 PM on the due date given here.
( Note: Keep all the source code and documentation because you will need it for future deliverables on your group project. )


Ivan Marsic
Sat Feb 28 16:38:19 EST 2009