Data In The Stock Market

Market data is defined as the price and trade-related data for a financial instrument or security and the NSE is the chief source of this data.

The Nigerian Stock Exchange is one that provides a range of real-time, as well as historical data to meet the various needs of users in the stock market. Not only is it the foundation by which investors can make decisions, there is really no stock market if there is no data.

Market data is defined as the price and trade-related data for a financial instrument or security and the NSE is the chief source of this data.

However, unlike other forms of data that could be allowed to go cold, the stock exchange functions in real time with a live streaming of trade-related data, at specific periods every \ working day. From the list of stocks and their various prices, historical trends of the market, data in the stock market represents everything.

This also includes the market volume which refers to the total amount of transactions that are traded in the market, as well as the bid/ask quotes on the diverse range of securities.

While the data for volume of trades in the market is determined in the market itself, there are so many more kinds of data that the stock exchange provides for you. Each level of data is also very time sensitive as a result of the kind of decisions investors take.

Ever considered where they get it from and how accurate it is?

The first phase of this huge data accumulation is the collecting phase where various data vendors collect and disseminate market data. Specialized technologies also exist to filter the data which will account for movements and changes in the stock market itself before distributing it to those in need of it.

Beyond real-time investment or decisions, investors also need historical market data to determine trends and calculate risk. All of these things need to be carried out at 100% accuracy and here lies the impeccable structure that is the stock exchange.

The Nigerian Stock Exchange recognizes this need for the market data to be reliable and to aid \ transparency in investing in the growing the economy as a whole. To ensure this, there are a number of regulations that guide market structure.

Regardless of source, all NSE data must be used and distributed in accordance with the NSE Market Data Agreement. What this means is that the stock market is as credible as its data.

It is, thus, one of the core data sources that can be trusted for effective decision making. While the NSE website has the data in various forms, Yochaa with its direct link to the stock market presents it in a simpler format.

Data is a key part of your investing journey and you should get comfortable with analyzing and interpreting it towards making informed investment decisions.

Written by Lawretta Egba.