A brokerage house employs agents who make stock transactions for clients. Agents are paid commissions based on the transactions. Tax information consisting of social security number, name and address, is stored for all agents, along with the total amount paid in a year.
Clients make an initial deposit into an account and are assigned an agent. The account balance is not allowed to be negative. A report showing all currently held stocks and the current account balance is generated every month. Client information includes contact information consisting of an address, multiple phone numbers, and an email address, as well as a name and a unique tax identification number.
For auditing purposes, all stock transactions are recorded. A transaction consists of the client, the stock, the agent who executed the order, the price per share, the number of shares, the commission, the total amount received or spent and the day of the transaction. Periodically, stocks pay dividends, which are cash per share paid to stock holders. Dividends must also be recorded. Dividends consist of the stock, the client, the day, the amount per share and the total amount paid. Dividends do not cause commissions to be paid.
The commission charged to a client is based on the client’s status. Premium customers pay 1%, while regular customers pay 2%. A client is premium if their account balance is over $100,000 or if they make more than 10 transactions per month.
All stocks appearing in a transaction or a dividend must reference a table containing all information about the stock. Specifically, the table contains a unique identifier, the official name of the company and the stock symbol.