8.2 THE ROLE OF THE AUSTRALIAN STOCK EXCHANGE o Stock Exchange offers several import benefits. Liquidity o shareholders can generally convert their shares to cash at short notice in the ongoing market Valuation o value one's holdings of shares almost on a second by second basis Prorection o ensure a high standard of business behavior on the part of the management of listed companies. o Secondary Market(circulating market where the issued shares can be conveyed o Primary Market(new issue market) which raises the new long-term debt(borrowing)and equity (ordinary share capital) issued by both business and government
8.2 THE ROLE OF THE AUSTRALIAN STOCK EXCHANGE • Stock Exchange offers several import benefits: – Liquidity • shareholders can generally convert their shares to cash at short notice in the ongoing market. – Valuation • value one’s holdings of shares almost on a second by second basis. – Protection • ensure a high standard of business behavior on the part of the management of listed companies. • Secondary Market (circulating market) – where the issued shares can be conveyed. • Primary Market (new issue market) – which raises the new long-term debt (borrowing) and equity (ordinary share capital) issued by both business and government
8.3 HOW THE ASX WORKS 8.3.1 Trading Stockbroking firm instruction of which shares, numbers price Past face-to-face system of a board on the wall of the trading floor SEATS- Stock Exchange automated Trading System computer network linking stockbrokers' offices stockbrokers enter buy and sell orders into the system, monitor the market from moment to moment o a specific market -a network of screen
8.3 HOW THE ASX WORKS 8.3.1 Trading • Stockbroking firm – instruction of which shares, numbers, price • Past – face-to-face system of a board on the wall of the trading floor • SEATS – Stock Exchange Automated Trading System – computer network linking stockbrokers’ offices – stockbrokers enter buy and sell orders into the system, monitor the market from moment to moment. • a specific market – a network of screen