Topic 2. Australian Financial Markets.pptx

Topic 2. Australian Financial Markets.pptx - BX2031...

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Australian financial markets BX2031  Personal portfolio Management
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Overview of Sessions 1 - Equity markets in Australia 2 - Australian debt markets 3 - Australian property markets Required reading: Chapter 2 Brailsford et al. (2015) 5 th ed. Self study questions: 2.1; 2.2; 2.9; 2.12; 2.17
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Learning outcomes: identify the major Australian financial markets understand the importance of these markets via selected statistics describe the basic legal and physical environment in which the markets operate be aware of the historical performance of each of the major Australian asset classes identify the securities associated with each Australian asset class appreciate the basics that underlie the Australian tax system, with particular emphasis on the dividend imputation system
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Australian financial markets The Australian financial markets have four major markets and asset classes: 1. Equity market long term equity investments. 2. Money market short-term debt instruments. 3. Bond market long-term debt instruments. 4. Property market both direct and indirect properties.
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Equity markets in Australia Australian Securities Exchange (ASX) The Australian Stock Exchange merged with the Sydney Futures Exchange and began operating as the Australian Securities Exchange in 2006. Since the merger, trading is conducted on either of two systems: ASX (listed stocks) ASX 24 (derivatives) Includes shares, options, warrants, interest rate securities, exchange- traded funds and futures contracts
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Equity markets in Australia Floatation (IPO) and secondary issues (rights issue – able to be sold on the market if renounceable) Note 2009 – influence of the GFC These forms of capital raising subject to the Corporations Act 2001 and requirements of ASIC
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Four main bodies concerned with the regulation of financial market in Australia Reserve Bank of Australia (RBA) Australian Prudential Regulation Authority (APRA) Australian Securities and Investments Commission (ASIC) Australian Government Treasury Equity markets in Australia a pra.gov.au
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Trading on the ASX – limit orders Limit orders are orders to trade a specific quantity of shares at a particular price.
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