Share market is a market where regular activities of issuance, purchase or selling of stocks of public companies take place. Financial instruments such as bonds, stocks or equities, corporate bonds, derivatives are traded in the share markets worldwide.
Market capitalization most commonly known as Market Cap is an instrument used to indicate the size or value of a company. Obtained by multiplying outstanding shares of a company by the current market price of the company. Based on market capitalization top ten share markets in the world are ranked as follows;
Overview of ASX including historical evolution, industry categorization, number of listed companies (as 0f a date 2019) and importance of ASX in Australian economy
ASX is an Australian based exchange where traders buy and sell securities of listed companies and other financial instruments. It begun back in the 1800’s where Australian cities amalgamated existing exchanges. A corporate body, Australian Associated Stock Exchange (AASE), was formed in 1937 to govern the association hence formalising it. At this time trading was done using the auction based call system. This system proved to be inefficient especially during mining booms. This system was replaced by the post system.
In 1987, Australian Stock Exchange was formed. At this time trading was done using the Electronic price dissemination system but in the same year they launched a new trading system, the Stock Exchange Automated Trading System (SEATS). In 2006, Australian Stock Exchange merged with the Sydney Stock Exchange and formed the current Australian Securities Exchange (ASX). With the merger, an Integrated Trading System (ITS) was implemented.
According to the Australian and New Zealand Standard Industrial Classification (ANZSIC), ASX is categorized in the financial industry. Today the Australian Stock Exchange is rated one of the most diverse share markets in the world with a market cap of A$1.9 trillion and more than 2000 listed companies.
ASX has the following importance to the economy;
Write a brief overview of the 3 selected companies from ASX including industry sector they belong to, key products, market capitalization, price performance over the past 5 years.
ALTHEA GROUP HOLDING LIMITED (AGH)
This company is categorised in the industry of Pharmaceuticals, Biotechnology and Life Sciences. It is responsible for governing and maintaining standards and practices that lead to the production, exportation and importation of medicinal cannabis in Australia. It has a market cap of AU$81.66 million. AGH has been experiencing volatile share prices in the past 5 years with the highest share price of AU$1.23 that happened this year in July and the lowest share price of AU$0.18 December last year. Below is a graph that shows its trend in the past 5 years;
DOMINO’S PIZZA ENTERPRISES LTD (DMP)
This company is categorised in the industry of Consumer Services. It has large restaurant chains all over the world that primarily sell and deliver pizza. It also offers franchise services. It has a market cap of AU$4.433 billion. DMP experienced an incline in its share price that saw its highest share price at AU$80.69 in August 2016. It since declined. In the present year its highest share price hit AU$53.63 in November and had its lowest share price of AU$40.23 in June. Below is a graph that shows its trend in the past 5 years;
TALON PETROLEUM LIMITED (TPD)
It is an Australian based company categorised in the industry of Energy. It is renowned for the exploring, production and development of petroleum resources in the United Kingdom. It has a market cap of AU$4.4 million. Below is a graph that shows its price performance in the past 5 years;
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