In any sophisticated relational database system, including those underlying major financial applications, two important components are Triggers and Stored Procedures. They are vital tools in refining our database system by automating routines and maintaining data integrity.

Triggers

A trigger is essentially a set of instructions that are automatically executed (or 'triggered') in response to specific events in the database. These events could be changes to data such as an insertion, deletion, or alteration. In financial data systems, triggers could be used to automatically update relevant data fields when a new transaction occurs. This automation can greatly increase efficiency and consistency in data handling.

Stored Procedures

Stored Procedures, on the other hand, are precompiled sets of code stored in the database that can be repeatedly called and executed. They not only help in reducing the amount of information sent to the server but also gives you control over who can access and manipulate your databases.

The real magic happens when they work together. Imagine a scenario in the finance world. A trigger could activate a stored procedure every time a stock price updates, causing a recalculation of an investor's portfolio value.

Understanding how to use triggers and stored procedures effectively will be crucial. Up next, we'll dive into implementing them in our own database system.

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if __name__ == '__main__':

  # Here we're just creating bare-bones functions to represent triggers and stored procedures

  # In a real-world scenario, these would be part of a larger database system

  def trigger(transaction):

    print(f'Trigger activated by {transaction} transaction')

  def stored_procedure():

    print('Stored procedure executed')

  trigger('BUY')

  stored_procedure()