The Australian stock exchange, termed as ASX, was founded in 2006 when two big stock exchange companies merged. Today ASX is one of the top 10 stock Exchange companies and has a daily business of 4.6 A$. Australia was ranked 5th in Financial development, 8th largest in Equity Market, 3rd largest debt market and the greatest Fixed Income Derivatives in Pacific Zone.
Investing in Shares in Australia may provide you the best opportunity to achieve your long-term investment goals. It does not require a large sum of money to start with.
- You don’t have to pay any account opening fee
- No maintenance fee
- You can buy and sell any ASX share
- Trade from your phone, laptop or anything online
- Trade Securely
- Experience quick response on your orders
Regulations in ASX:
Investing in shares is facilitated by various departments to monitor the income of the companies, different contracts, and policies. A separate department is there to enforce the Terms of operations set by the Board of governors elected through free and fair elections.
Systems of Trading:
There are two major systems of trading in Australian Stock Exchange.
- ASX Trade – Online Equity Trading platform with a really low latency of about 250 microseconds.
- ASX Trade 24 – Global trading platform for derivatives. It is globally operated through various gateways in different cities.
Types of Settlements:
There are two types of Settlements in which the investors keep the Shares.
- Issuer Sponsored – The type in which the shareholder is issued a Security-Holder Reference Number.
- Clearing House Electronic Sub-Register System – The type in which the holder is issued a Holder Identification Number (HIN) and the shareholder is informed about any movement in the stock rate per month.
Short selling is the sale of Security which is either not owned by the seller or borrowed. It is allowed in ASX but only under the following two conditions:
- The brokers must report daily Short Sales.
- ASX publishes aggregate gross short sales to ASX participants and the general public.
Interest Rate Market:
The interest rate market is a set of bonds and Floating Rate Notes. These Securities are treated in the same way as the normal shares. The only difference is that the ASX provides some basic data like the maturity of the share and Effective interest rate.
ASX Beginners Game:
A very innovative and an excellent mode of conveying awareness regarding the stock market to the layman or even to the students at the basic level is to teach them through a Game. Each player is given $50,000 to buy and sell shares in the same way as in the real world and with the same rates in order to get to know the working of Shares and Stocks.
Things to Keep in Mind:
- For how long can you invest your money?
- How much risk can you afford?
- Will you buy a long-term share or will you trade actively?
- Do you want your income from the dividends or Capital Growth?
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