This website uses cookies to ensure you have the best experience. Learn more

Economics Essay On The Australian Sharemarket And How It Works

1635 words - 7 pages

The Share MarketThe share market in Australia has two main functions. Firstly, it provides a link so that listed companies can receive equity funds to expand their operations and so that the people with the funds can invest and receive return in capital gains and dividends income. Secondly, it provide a market place where buyers and sellers can come together for the trading of shares and other securities at the current market price which has been determined by the forces of supply and demand. The share market also is included in the internal regulation of security exchanges through the ASX (Australian Stock Exchange).The role of the share market can be considered from 3 main perspectives: ...view middle of the document...

When the float of the company is finished, and it is listed on the stock exchange, profits that result from future trade in the company's shares will not go to the company but instead it will go to the firm's shareholders. Therefore, future trading is unable to provide the same benefits for the company ¬- in terms of an increase in capital - as an initial float.When there is competition in the stock market and the number of investors is the same, the competition for the supply and demand of shares is manipulated. For a company to be successful in competing it will need to make itself more desirable and attractive for investors. This will usually mean higher dividends are paid out to the investors, so as to encourage further investment. As the company increases its supply of shares through a float, the price mechanism will adjust the price and set a new equilibrium to help the company compete in a competitive stock market.Stockbroker organizations between the buyer and the stock exchange are common in the share market. These institutions offer a range of services and advice to both investors who want to invest or trade shares, and to the companies offering the shares. These stockbrokers also adhere to a strict code of ethics, offer investment advice on all kinds of securities, and provide financial and future investment plans. These institutions are beneficial because they allow new shareholders to successfully take part in investing in companies and in turn receiving returns through capital gains or dividends. Technological advances in relation to the stock market have been beneficial in making the stock exchange a more reliable and secure place to trade. It is no longer run by hand and tickertape machines; everything is automated and the current share prices can be kept accurately up to date. Shares can also be traded almost instantly without the need to issue a certificate, but the use of a digital certificate instead.The share market has a significant impact on the activity that goes on in an economy. This impact is mostly caused by the purpose of shares to create investment opportunities and in time affect the total pattern of investment.One of the most important impacts of the share market is that it facilitates more efficient investment in the economy. Without the share market or well-developed financial systems in an economy, most of the investment will occur through borrowing. When the individuals in this economy choose not to consume, they save their incomes with intermediary financial institutions and the companies that require investment funds must borrow through these institutions. The problem with this system of lending and borrowing through financial institutions is that only limited benefits are passed on to the individuals saving their income and the companies borrowing funds - as the returns on the savings are usually quite low, and the cost of borrowing is quiet high.This is contrasted to an economy with a share market. A...

Other Essays Like Economics Essay On The Australian Sharemarket And How It Works

Shang Dynasty. This Essay Gives Presumed Information On The Shang Dynasty And Draws Conclusions From It

602 words - 3 pages human sacrifice. Graves with unusual contents such as the chariot driver with his horses is evidence of ritualistic burial, and the tortoise shell with questions on it suggests some mystic belief in the power of animals, or turtles. These beliefs seem to be consistent throughout the whole dynasty.The Shang economy seems to have some structure, but not a strong one. Large towns and small villages point to a division of agriculturally and technically

Corruption: An essay on public officials and corruption in office. Includes works cited

534 words - 3 pages people act like they accept these types of practices by re-electing those caught in the act and not complaining about it. Of course, some people seem to benefit from some corruption so it all depends on if you are on the receiving end of it or not.Works Cited/ConsultedAdes, Alberto and Rafael Di Tella. 1996. "Causes and Consequences of Corruption: A Review of Empirical Contributions." IDS Bulletin:Liberalization and the New Corruption 27, 2 (April): 6-11.Hosenball, Mark. "At a Bad Loose End." Newsweek. 27 May 2002.Trojanowicz, Robert. Preventing individual and systemic corruption.http://www.ssc.msu.edu/~cj/cp/prevent.html. Harvard, 1996.

Globalization And How It Effects The World

1482 words - 6 pages . Globalization is not a new term by any means, but is now acquiring more emotive force than ever before. Opinions on the matter are varied and passionate. One dynamic debate is whether or not globalization is causing rich countries to get richer and poor countries to get poorer.A person much first understand what globalization is. Some see it as a primarily economic phenomenon, involving the increasing interaction, or integration, or national

This Is An Essay On The Changes In History And How Certain People Helped This Change

1312 words - 6 pages and for the better. People have the power to overcome what they do not agree with as long as they stick together and they feel strongly about it. If they show that they know they are correct and allow the time to help then overall they will accomplish what they are working so hard for. So I do believe that Gandhi's quote should have a great impact on people today because once you understand what he is trying to say you will realize that he is only stating the truth. In doing this essay I believe I have learned more about history improving and the importance to giving stuff time.

How the Emergency Management Process Works

1303 words - 6 pages Module 4 Answer three (3) of the questions listed below. Make sure you answer all questions in a question set. 1. Explain how the emergency management process works. What is involved? The Emergency management process is the process of dealing with an emergency. In order for it to work you must be completely prepared for anything that could come your way and have a plan to get through it and recover from it. It involves making an

Economics and How to Live Comfortably

1034 words - 5 pages How to become economically independent - You want to act like you are independently wealthy. Open a savings account. If you work for your income then take 10% of each paycheck and put it into the account. This is very important: when the account makes interest put the interest into the account. Of course never take funds from the account and never spend the interest it makes. Here is an example: Suppose you make $100 per week, and you have a

The Death Penalty: Is The Death Penalty Effective? Is It Necessary? Elaborate On How It Affects Society And The Fact That Innocent People Can Be Unfairly Executed

1679 words - 7 pages penalties reduced to life sentences or less and more condemned inmates die in death row than by execution. The effectiveness of capital punishment rests largely on the willingness of officials to use it liberally and thus exerting the power of the government. This penalty would serve as a deterrent of violent crimes and restore justice. Increased use would prod people to stay away from violent crimes. Would-be criminals would think twice before

This Is A Term Paper On AIR Pollution. It Has Some Causes And Effects, Etc. It Mainly Has To Do With How And Why The Pollution Is Occurring

719 words - 3 pages Air pollution is one of the most devastating forms of pollution. It occurs almost everywhere on Earth, especially in large cities. It harms people by causing breathing problems and sicknesses like cancer. Many plants, animals, and their habitats are damaged by air pollution. Many pollutants do not disappear from Earth's atmosphere, returning as acid rain and snow. CFCs, or chlorofluorocarbons, destroy the ozone, allowing in more of the sun's

All About Australian Law System AND The Australian Jury

925 words - 4 pages directed to do so, although if anything said by the judge (for example, in answer to a juror's question) conveys the impression that a non-unanimous verdict will suffice, this will give grounds for repressing a conviction on appeal.In the other five major Australian jurisdictions, majority verdicts are authorised by statute, though subject to significant limitations. The minority may never be more than two in number and under some conditions- namely

How the Affects of Economics, Crime, and Prevention Is Affecting America

5375 words - 22 pages jurisdiction for which there is no legally acceptable justification or excuse. Crime does more than expose the weakness in social relationships; it undermines the social order itself, by destroying the assumptions on which it is based. What we call criminal activity has been with us since dawn of history, crime control has long been a primary concern of politicians and government leaders. l worldwide. Still the Americans experience with crime during

This Is An Essay About How One My Become Disappointed And The Effects The Emoctin My Have On Someone

679 words - 3 pages Disappointment A Powerful EmotionMost people have expectations of how something is going to turn out. When things do not turn out the way, we want them to turn out; the feeling of disappointment takes over.Disappointment is the feeling people get when something or someone fails to live up to our expectations.There are many ways and reasons why we become disappointed.People can feel disappointment in themselves or others .Sometime we are

Related Papers

The Allais Effect Changing Our Views On Gravity And How It Works

370 words - 2 pages In 1954 Maurice Allais, a French economist who would go on to win the Nobel prize, decided to observe and record the movements of a pendulum over a period of 30 days. Simultaneously, during one of his observations, a solar eclipse took place. Just as the moon passed between the sun and the earth, the pendulum began moving faster that expected.Now known as the "Allais effect", it contradicts Einstein's theory of General Relativity - The modern

How It Works: College Essay

539 words - 3 pages From the time I was able to realize what a university was, all I heard from my mother's side of the family was about the University of Michigan and the great heritage it has. Many a Saturday afternoon my grandfather would devote to me, by sitting me down in front of the television and reminiscing about the University of Michigan while halftime occurred during a Michigan Wolverines football game. Later, as I grew older and universities took on

Essay On Economics

2130 words - 9 pages Question 1: Briefly describe the main features of the Australian labour market focusing on the issues of government regulations, role of the unions and immigration. Attempt to model the labour market in Australia using the economic model of demand and supply. In particular, demonstrate how you can incorporate in this model the issues of market segmentation according to the difference in workers’ skills as well as the impact of government

This Essay Is On Downs Syndrom. It Has Causes Of The Disease, Different Treatments And How Families Cope With The Disease

534 words - 3 pages information from its parents in the form of 46 chromosomes: 23 from the mother and 23 from the father. In most cases of Down syndrome, a child gets an extra chromosome, for a total of 47 chromosomes instead of 46. This added chromosome alters the course of progress and causes the characteristics linked with the syndrome. The life span of white people with Down syndrome is 50 years, while it is 25 years for black people and 11 years for people of