Posted on December 30, 2016
The stock market, like all other markets, is an online market as of a decade ago. The internet isn’t a safe place for money transfers, as we all know, and therefore the security of the stocks is something that no one can guarantee. The internet also brought the expansion of said market, and that caused the need for better security of the trading and the shares that enter the market.
Insurance of the shares through GDR and ADR
GDR aka global depository receipt represents the certificate that a company or individual receives once it sells their shares to a depository bank. An entity that holds this certificate has the ownership of the shares of a company that is stationed in another country. They can use the GDR to invest in markets (companies) in less developed countries (companies that they believe will grow in the future). ADR aka American depository receipt is the original form of this certificate and GDR is just its global equivalent.
Being in possession of GDR can help the entity if the market suffers from the hack-attack and the shares are lost. They can request the return of their investment if the shares disappear.
Online protection through two-factor authentication
This type of protection requires full round-of-clock department that exists for the protection of the data. It represents the use of mobile device authentication along with the email or another kind of security requirement.
But, what does this mean, you may ask? It means that the protection has two layers, one that is based on software and another that requires hardware. The software requirement involves the use of username or email and a password. This is a first step in the authentication process. The second step requires the use of a mobile device and a number. The individual that wants the access to the site receives the code (on mail or possible via SMS) which they have to type either on the login page or to send to a predetermined number via free SMS.
Conclusion – Internet protection is a cornerstone of online business
The Internet is a medium for many business transactions that involve hundreds of thousands of dollars (in some cases even millions), and therefore high-tier protection of the medium is necessary to create a healthy and secure business environment. The owner of the site that acts as a medium has to protect the transactions that go through them, with several layers of protection, to ensure that nothing happens with the money in the transit.