Monday, October 19, 2009

Australian Stock Exchange

By Michael Kaufmann

Any investor interested in the Australian stock market will be happy to know with the implementation of an all electronic system, there will be minimal delays in stock trading. Direct transactions with investors are an ideal situation, because there are no market markers on ordinary shares. This also eliminates the chance to lose stop orders. This new convenience, has been made possible with SEATS, the electronic trading system.

An online stock trader can be placed directly in touch with the SEATS system, through a broker, without undergoing a credit check. Online trading has been very popular lately with the introduction of trading bots and other new tools for an online trader.

This technology increases the field of investors in the Australian stock market. The Australian Securities Exchanges or ASX, has developed a mock trading program for students and potential stock traders. This program is a way to learn how to buy and trade shares on the ASX. The program is spread out over six months. The students are given a mock $50,000, to invest in the market. This teaches the students the ins and outs of trading and gives them the experience they will need in the real market.

Stock trading in Australia began in the late 1800s, as a set of six separate exchanges, one for each state capital. These merged into a single exchange in the early 1900s and eventually became the Australian Securities Exchange (ASX), which today has the power to regulate publicly-owned companies. Although the ASX is itself publicly owned, it is not permitted to regulate its own company, and no individual ASX shareholder is allowed to own more than 15% of the company's shares.

The Australian Securities and Investments Commissions or also known at the ASIC, regulate the small shares, the ASX does trade in the market. The Ministry can also be involved in the conditions related to the ASX licensing and operating rules.

There are several indices maintained by the ASX in conjunction with Standard and Poors (S&P), including the S&P/ASX 300, 200, 100, 50, and 20. For investors wishing to follow the Australian stock market and its indices, a number of companies offer consultation and guidance. One such company is the Intelligent Investor, which is a group of independent investing experts who give customised advice to members. A free trial membership is available, and full membership includes a 100% money-back guarantee. - 22871

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