Set up in 2006 to help the needs of experienced and inexperienced investors and traders of the ASX. With information and links to resources such as brokers, share prices, cfd's, stock market books, graphs, stock newsletters and a whole host of other information sources our aim is to eventually be the most comprehensive Australian Stock Exchange information site in Australia.
So what are these CFD's that are taking the world by storm and why are they so popular?
And how do you get a piece of the action?
Well a CFD is the abbreviated version for Contract For Difference and these contracts work on a very simple principle.They are a derivative product and mirror the stock market and the underlying stock prices exactly. You make a profit or take a loss just as you would based on the underlying stock price. Contract For Difference simply refers to the fact that when you open a position(CFD) you enter into a contract for the difference,wether it be a profit or a loss at the time that you close that position.
Well put simply it stands for Australian Stock Exchange or Australian Securities Exchange and is the place where buyers and sellers of shares or stocks come to market to buy or sell their goods. Just think of it like a conventional market where everyone comes to buy or sell. The only difference is that instead of cabbage and lettuce they bring certificates of share ownership.
The australian Securities Exchange or stock exchange was opened for trading in 1861 and began as a number of separate state based exchanges. Did you know that the Stock Exchange itself is a publicly listed company and is listed on the stock exchange under stock code ASX ? The Australian Securities Exchange is now the 9th largest exchange in the world after its merger agreement between itself and the Sydney futures Exchange.
Because of conflicts of interest the Exchange cannot regulate itself so this job is given the the Australian Securities And Investment Commission (ASIC)
Why would a company want to be publicly listed and follow the myriad of rules that a publicly listed company has to follow? Well there are many advantages of becoming a publicly listed company but the reason most company's go public is to raise capital for growth. When a company first raises money and goes public to get their business off the ground this is called a float.