Asx Australian Stock Exchange Stock Market Information
Asx Australian Stock Exchange Stock Market Information
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Home Page > Finance > Investing > Asx Australian Stock Exchange Stock Market Information
Asx Australian Stock Exchange Stock Market Information
Posted: Feb 27, 2010
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Asx Australian Stock Exchange Stock Market Information
By: Jason Russell
About the Author
Thanks for reading the article above
All information was taken with permission from www.australianstockexchanginfo.com
If you would like to place or use this article on your website you can however you MUST provide a link back on the sites homepage you are using this article for. Link to use is www.australianstockexchangeinfo.com
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So what is the ASX ( Australian Stock Exchange) and how can it benefit me to become financially free through trading and investing on the Australian Stock Market?
History of the ASX or Australian Stock Exchange
Lets begin by taking a magnified look at the Australian Stock market. From here down we will refer to it as the ASX. The Australian Stock Exchange actually began it’s life way back in 1861 as separate, independent state based exchanges. These separate state based exchanges existed in the following Australian states: Perth, Melbourne, Adelaide, Brisbane and Hobart. Each Exchange existed for it’s own states benefit and cross trading was not permitted. The first interstate conference was held in 1903 to discuss formal, financial information and this occurred right up until 1937. At this point in time a uniform body was formed to better represent each state which was called the “Australian Associated Stock Exchanges” or AASE. As time went on, this unit became closer to becoming a single entity and created a list of trading rules, rates, listing rules and brokerage rules to keep uniformity across all states.
As the Australian Stock Exchange was relatively small at this point in time, financial information and trades were placed by a call system whereby callers employed by the Stock Exchanges literally called out information such as company name and bid or offer prices for that company.
This system of calling was then superseded in the 1960’s to a posting system. In this system employees of the Stock Exchange which were referred to as “chalkies” wrote bid and offer prices and company names on chalk boards on behalf of clients. This is obviously a fairly complicated system with many flaws and could not possibly last forever.
The ASX was formally and officially formed as a single entity in 1987 by the Parliament of Australia and now traders and investors from anywhere in Australia and in fact the world, were able to now place a trade through a certified broker through one single stock exchange. This made it much easier for everyone , including the companies listed on the Australian Stock Exchange who now only needed to list once. Another benefit now was that there was a uniform set of guidelines and rules for everyone including investors, brokers and company’s looking to list on the Stock Exchange. The Australian Securities Exchange is now, itself, listed on the Australian Stock Exchange under the stock code ASX. Although the Exchange regulates other companies it obviously cannot regulate itself as this would be seen as a conflict of interest. For this reason a government body was formed called ASIC which stands for Australian Securities And Investments Commission. Since it’s inception ASIC has successfully prosecuted many fraudulent companies and individuals.
Trading on the ASX which was handles by the chalkies was then transferred to an all electronic system call SEATS which stands for Stock Exchange Automated Trading System. This system is all electronic and much more efficient and is capable of placing hundreds of thousands of stock trades every day. The SEATS system however has now been made redundant for the exchanges current system which is much more powerful and can place even more trades than SEARS could. The new system is called ITS, which stands for Integrated Trading System. This system is in place today and has been hailed a total success.
Australian Stock Exchange Quick Facts
The ASX is today believed to be the eighth largest stock exchange in the world by market capitalisation and is the primary stock exchange in Australia. Although other Australian exchanges exist and mirror the ASX, the Australian Stock Exchange is considered the main hub for investing in Australia. The ASX is currently believed to have a market capitalisation of approximately 1.1 trillion Australian dollars with over 2,200 publicly listed companies.
The ASX has made great historical returns for shareholders who performed in line with the benchmark index (the All ordinaries).
The benefits of listing on the
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