The Australian stock exchange essays

The Australian stock exchange essays This assignment will briefly outline the purpose of the Australian Stock Exchange and its duties and what it does to ensure that the Australian share market runs smoothly. It will also explain why the overseas stock exchanges can have such a great effect on the Australian Stock Exchange The Australian Stock Exchange (ASX) was formed in 1987 when six independent stock exchange companies merged together. The ASX started of as being a mutual organization of stockbrokers and state stock exchanges. But in 1988 they issued shares to be sold on their own market. The Australian Stock Exchange is now a public listed company. The ASX is Australias national stock exchange. It operates two share markets. The Primary market where companies first issue shares at certain prices to be invested in. And the Secondary Market where shares are traded daily the prices on the secondary market are determined by demand and supply. It is the ASXs duty to ensure that these markets are efficient, free and fair for all buyers and sellers. The ASX preforms many roles to ensure this. It regulates the markets by setting listing rules which the registered companies must abide by in order to list and keep their company listed. This allows Companies and trusts to issue shares to the public for in order to raise capital. This enables companies to expand of set up new businesses. There are around 1,483 companies currently listed on the ASX. The shares issued by these companies are brought and sold by the general public wishing to invest to receive short or long-term gain. The shares are traded daily through a broker. The ASX provides an electronic trading system so no physical trading needs to be done. This electronic system is called Stock Exchange Automated Trading System (SEATS). Although before SEATS was introduced in 1987 ASX had a trading floor where people wanting to buy or sell would go. Overseas Stock exchange markets greatly influence...