The Australian Stock Exchange

Paper Summary:

This paper discusses stock investments in the Australian Stock Exchange (ASX). It first discusses the history of the ASX and the methods that are used by ASX and then briefly discusses the risks for the investor in ASX shares. Next, the paper examines some of the stocks that are offered on the ASX. Finally, the paper discusses why some-one may choose one type of stock over another.

From the Paper:

"Four different investment vehicles that would influence an investor are common stocks (ordinary shares), preference shares (preferred stock), convertible notes and last, but not least, the rights to buy stock. One consideration is that if an investor was worried about a company that was facing bankruptcy and receiving any of the invested dollars back then the investor would have to know where in line he/she stood."
"Convertible notes are legal debts assumed by the company and must be paid in full as well as any dividends that the investor may not have received. The notes would be one of the first vehicles in which investors would be considered. A good example of a preferred offering was the Amazon deal completed a while ago in which Amazon sought to raise capital that was convertible to shares an investor could purchase 'down the road'."

Sample of Sources Used:

• Background on the Australian Stock Exchange, (2006) accessed August 17, 2008, at http://www.gocurrency.com/articles/asx.htm
• Brown, P. (1998) U.S. flat panel fab planned, Electronic News, Vol. 44, No. 2220, p. 17
• IINET Ltd., accessed August 17, 2008, at http://www.asx.com.au/asx/markets/PriceResults.jsp?method=get&template=F1001&ASXCodes=iin
• Miller, S.E., (2007) Valuing preferred stock, Journal of Accountancy, Vol. 203, No. 2, pp. 55 - 59
• Mutter, J., (2000) Moody's wary of new Amazon offering, Publishers Weekly, Vol 246, No. 7, p. 80

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