This research will investigate the similarities and differences between Ho Chi Minh City Stock Exchange (HSX) and The New York Stock Exchange (NYSE), in terms of their operations and trading systems, in order to assess what HSX could learn from the NYSE’s standards, so that recommendations can be made to HSX.
2. Research questions
2.1 Research question 1: What is the historical development of Vietnamese and American Stock Markets?
There are three types of information sources used in this research project: primary sources, secondary sources and social commentary sources.
Primary sources
Primary sources are the sources that consist of the first-hand or original information and experience of the authors. The information from primary source is usually created by someone with personal experience of something during a specific research or specific event. In addition, the primary sources also bring valuable data such as figures, tables or numbers of those organisations. Nonetheless, the data was created by the organisations themselves; therefore, it might be biased in some cases. Common primary sources are diaries, an art work or autobiographies (Massey University, 2012). Primary source HOSE trading regulations. (2016). Retrieved on May 9, 2016 from https://www.hsc.com.vn/en/help-center/trading-regulations/hose-trading-regulations This source is very helpful, which contains a large amount of information about the background and history of Vietnamese stock exchange, which is needed to help the researcher to answer question 1. In addition, it also shows specifically up-to-date information of the HSX. Furthermore, this source also provides lots of information about the objective, mission and vision of the HSX. Because it was published by HSX, it can be considered a primary source. Secondary sources Secondary sources are the results of primary sources of information after being analysed and interpreted by other authors. The secondary sources provide the objectiveness of an issue from analysing both primary and secondary sources. Journal articles or books that analyse a variety of sources are examples of secondary sources. (Massey University, 2012). Secondary source Truong, L. (2006). Equalisation and Stock-Market Development: The case of Vietnam. University of Groningen: Netherlands. This source critically reviews the birth of the first stock exchange in Vietnam and its developments. Specifically, the source contains a lot of charts, tables and figures with specific statistic of Vietnamese stock exchange. In addition, the purpose for the establishment and background of the NYSE are also illustrated clearly through the source. Social commentary sources Social commentary sources provide overviews of topics by summarising materials from primary sources and secondary sources. Examples of social commentary sources are dictionaries or encyclopaedias (VirginiaTech University, n.d.). Social commentary source Fuentes, G. (2016). What …show more content…
Furthermore, there also lots of useful information such as organizational model of Vietnamese stock exchange, regulatory bodies and model. The vision of HSX is also indicated by the source, which is to industrialize and modernize the country, maintain stable economic growth and restructure the economy to enhance its efficiency and competition. As a result, this source help researcher recognize the urgent demand of building securities market in Vietnam to develop and maintain efficiently the economy of Vietnam.
Secondary source
Hasbrouck, J., Sofianos, G., & Sosebee, D. (1993). New York stock exchange systems and trading procedures.
This paper provides clearly the operations and trading systems of the NYSE. Specifically, this paper contains information about order entry and execution, trade and quote reporting, the audit trail, the Inter market trading system, crossing orders and the upstairs positioning of large block trades. Furthermore, the descriptions of the changes in NYSE trading systems and regulations are also illustrated. In conclusion, this source gives a full description of the operations and trading systems of the NYSE.
Social commentary source
Whickson, P, J. (2016). How does the New York Stock Exchange work? Retrieved on May 9, 2016 from http://www.ehow.com/how-does_4777672_new-york-stock-exchange-work.html …show more content…
Specifically, the purpose of this is to spur investment inflows and reduce market volatility. NYSE, however, is an open stock market that attracts a large foreign investors. As a result, the difference between these activities also affects the effectiveness of each stock exchange. Furthermore, the papers also indicate information about the privatisation in Vietnam which can provide promising candidates for the stock market can by no means replace the well-established institutions. The disclosure requirements imposed on some companies are comprehensive, which can make lots of threats to the minority