Stock Market Swot

-----------------------

Strengths

• Provides access to a large range of financial products, cfd, options, commodities currency trading. One stop shop

• Ability to provide customers with risk management derivatives

• Fast & cheap order execution and instant confirmation

• Easy to use trading platform with online tutorials for trading tools e.g. graph chart sector analysis tools aimed at encouraging more trading activity

• Live intraday price quote

• Our reputation

• Economies of scale

Weaknesses

• Customers switching

• Trading platform maintenance with loss of operations

• Aquiring & retaining skilled staff

• Capital adequacy laws resulting in money being uninvested

• Competition

• Uneducated and risk averse customers unwilling to use derivatives resulting in loss in commissions

• Execution only service leaving portfolio management market untapped e.g. pension funds

•

Opportunities

• Globalisation of financial markets with enormous customer base

• People greed ,ambitions, fears and emotions resulting in more trading commissions

• New emerging markets e.g. rare earth metals

• Recession i.e. cheaper wages and more talented staff available

• Deregulation of financial markets

• Other stockbroking firms closing down

• Clients wanting to trade for themselves instead of paying a broker e.g. received bad advice elsewhere

• Markets recovering or a recession triggeres large sell off or buys

•

Threats

• Economic conditions e.g. currency rates, inflation , changes in interest rates

• New regulatory changes e.g. fraccing laws introduced affecting oil industry diminishing trading or capital gains tax laws changed

• Competitors targeting our market

• Increase in overheads

• Attitudes towards trading changing as people become more risk averse and prudent

•

1 criteria examples

2

Market...