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Unformatted text preview: Question 5.12 Who are the regulators of the Australian securities market? Discuss their importance. • ASIC – Administers corporations act • ACCC – Protect competition in the market and prevents misleading and deceptive conduct from occurring • ASX – See above • SFE – Licensing, registration, inspection of operations of SFE Question 5.14 In executing trades, what types of orders can be placed? • Market order – buy or sell at best price • Limit order – buy or sell at or below/above a specified price • Stop-loss order – automatic sell if prices drop enough Question 5.15 Discuss margin trading • Margin trading involves using borrowed money to make security purchases and to magnify returns on the investment • When profits occur, the financial leverage arising in the margin trade generates a higher return on equity as opposed to un-margined investments Chapter 13 JESSICA YANG 3...
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This note was uploaded on 04/02/2012 for the course FINS 2643 taught by Professor Fong during the Three '10 term at University of New South Wales.
- Three '10