Share Market Flashcards
Listed Company
A company listed on the ASX
Interest Rates
Rate at which interest is charged. Impacts on the sharemarket due to the amount of borrowings
Dividend
Payment to an investor as the company has made money
Investor
Person who buys shares or stocks
Shares
Part ownership of a company
ASX
Australian Security Exchange
PDS
Product Disclosure Statement
Blue Chip
A large company with good profitability
Secondary Market
Shares are issued to everybody else on the sharemarket via the ASX
Share Market
Places where shares are bought and sold
Market Forces
Things that impact on the price of shares
- supply and demand of product/ services
- Exchange rates
- Economy
- Interest rates
Primary Market
Shares are issued for the first time, issued through a prospectus
Float
When a company issues shares for the first time
Exchange Rates
Value of one country’s currency in anothers
How can shares make you money?
Capitol growth
Dividends
Price of share is determined by the ……
Demand and Supply
Share holder
A person who owns a share in a company
Board of Directors
A group of individuals that are elected as or to act as the representatives of stockholders to establish corporate management related polices and to make decisions on major company issues.
Diversified Portfolio
A portfolio that includes a variety of securities so that the weight of any security is small.
ASX Activities
- Reviewing applications by companies listed on the ASX
- Supervising companies after they are approved to make sure they obey the rules
- Making the shares in listed companies available for trading on a network of computers in an electronic market
- Reviewing applications by stockbrokers to be ASX participants
- Giving approved stockbrokers access to the sharemarket so they can buy and sell shares for themselves and customers
- ASX also operates a system for keeping a record of ownerships of shares
4 factors that influence the share price of a company
- People running the company
- Taking over companies
- Technological innovation
- Interest rates
What is the key rule that companies must follow concerning the way they operate?
Immediately tell the public about anything that would influence their decisions to buy or sell shares in the company
What is the difference between investing and saving?
“Savings” are usually put into the safest places that allow you access to your money at any time
“Investments” have a greater chance of losing your money, gamble
