On 1 April1987, six exchanges that operated in the state capital cities merged to form the ASX. It is an Australia's primary national market for equities, derivatives, and securities. In Nov.1998, the ASX became the first exchange in the world to have its shares listed on its own market. On 1 August 2010, the responsibility for the supervision of real-time trading on the ASX was transferred to ASIC. The ASIC which is an independent commonwealth government body become the Australia’s corporate, market and financial service regulator. From then on, trading on the ASX is regulated and supervised mainly by ASIC and ASX. In this report, we are going to look in detail at the role played by the ASX and ASIC in the regulation and supervision of trading on the ASX. Moreover, a wide range of sources are used in this report. Some information are obtained from the textbook, official website of the ASX and ASIC, as well as several journal articles. Topics covered in this report are the importance of the ASX as a regulator, the responsibility and objective of the ASX and ASIC, roles played by the ASX and ASIC, and the supervision transferred.…
This paperwork of BUS 405 Week 2 Discussion Question 1 Primary And Secondary Markets comprises:…
What is the intended role of each of the institutions and intermediaries discussed in the case for the effective functioning of capital markets?…
An interconnected network of brokers and exchanges licensed by the government to assist investors in trading securities…
3. Describe the main players in the financial market(capital resource primary allocated): Business Firms, Households, Governments – can be both borrowers and savers, Financial Intermediaries “Connectors of borrowers and lenders” (Commercial Banks, Investment companies, Insurance companies, Pension funds, Hedge funds), Investment Banks (Firms that specialize in the sale of new securities to the public, typically by underwriting the issue; Commercial and investment banks were separated by law from 1933 to 1999; Post 1999 large investment banks operated independently from commercial banks; In September 2008 end era of “wall street”) (NOT allow most participants to routinely earn high returns with low risk)…
1. What is the intended role of each of the institutions and intermediaries discussed in the case for the effective functioning of capital markets?…
From investor‟s perspective, secondary markets provide marketability at a fair price for shares of securities they own Active secondary market enables companies to sell their new debt or equity issues at lower funding costs than can companies without secondary markets that sell similar securities 1 21/03/2013 The market for shares Secondary markets and their efficiency Virtually all secondary equity market transactions in Australia take place on the ASX In terms of total volume of activity and total capitalisation of companies listed, NYSE is world‟s largest and NASDAQ is second largest There are four types of secondary markets The market for shares Secondary markets and their efficiency Secondary markets farthest from our ideal of complete price information are those in which buyer and seller must seek each other out directly.…
The Federal Open Market Commitee. (2004, May 4). Press Release May, 4 2004. Retrieved May 1, 2013, from http://www.federalreserve.gov/boarddocs/press/monetary/2004/20040504/default.htm…
In McKay report to Expert Panel on Securities Regulation, it has been 10 years since the discussion about improvement on Canadian Regulatory Framework that indicate changes have to be done. Major and minor obstacles have been debated since which calls for action of changes. In this research I will try to explain how and why changes are needed for securities regulation in Canada in order to bring our capital market compete-able with the rest of the world while in the same time provides high securities for all the stakeholders and backed by the federal government.…
When we discuss the stock market we discover that it is an organization where equities are exchanged between buyers and sellers and the first thing that should come to our mind is either the New York Stock Exchange (NYSE) or National Association of Securities Dealers (NASDAQ). They are two exchanges who account for the trading of a major portion of equities in…
Chapter 1 Why Study Financial Markets and Institutions 1.1 Multiple Choice 1) Financial markets and institutions A) involve the movement of huge quantities of money. B) affect the profits of businesses. C) affect the types of goods and services produced in an economy. D) do all of the above. E) do only A and B of the above. Answer D Topic Chapter 1.1 Why Study Financial Markets Question Status Previous Edition 2) Financial market activities affect A) personal wealth. B) spending decisions by individuals and business firms. C) the economys location in the business cycle. D) all of the above. Answer D Topic Chapter 1.1 Why Study Financial Markets Question Status Previous Edition 3) Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A) commodity markets. B) funds markets. C) derivative exchange markets. D) financial markets. Answer D Topic Chapter 1.1 Why Study Financial Markets Question Status Previous Edition 4) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of 100 per year) is commonly referred to as the A) inflation rate. B) exchange rate. C) interest rate. D) aggregate price level. Answer C Topic Chapter 1.1 Why Study Financial Markets Question Status Previous Edition 5) The bond markets are important because A) they are easily the most widely followed financial markets in the United States. B) they are the markets where interest rates are determined. C) they are the markets where foreign exchange rates are determined. D) all of the above. Answer B Topic Chapter 1.1 Why Study Financial Markets Question Status Previous Edition 6) Interest rates are important to financial institutions since an interest rate increase ________ the cost of acquiring funds and ________ the income from assets. A) decreases decreases B) increases increases C) decreases increases D) increases decreases Answer B Topic…
i) Standing behind the Issue: Under this method, the underwriter guarantees the sale of a specified number of shares within a specified period. If the public does not take up the whole of the specified amount of the issue, the underwriters standing behind the issue come forward to purchase the balance.…
The Joyful Mysteries - with the introduction of the new Mysteries of Light the Joyful Mysteries are now said on Mondays and Saturdays and for those who say a single mystery a day, focus on the joyful occassion of the birth of Christ and His childhood:…
Source: Andreas Hackethal and Reinhard H. Schmidt, “Financing Patterns: Measurement Concepts and Empirical Results,” Johann…