Fundamentals Of Finance
- A stock exchange is essentially a market place, physical or virtual, where company’s stock, shares, bonds and other financial securities are traded. It is an organized market of sorts where pricing is under the hands of the public demand and supply (Kendall & Steen 2005).
A stock exchange primary purpose from a company’s view point is to raise funds by selling its shares to the public, and thus transforming to a public or listed company from a private company. The funds raised are used in business expansion (Fischer 2008).
From an investor’s point of view, buying these stocks would enable them to receive a share in the profits, and sell these at a later point of time if a company becomes successful, at a profit. It is a great saving tool for investors as investing long term in stocks definitely reaps in great profits.
The stock market is also deemed to be a great forecasting model for an economy. The performance of the shares traded and the stock exchange as a whole bear a strong correlation with the economy’s growth and future prospects.
A stock exchange aims to educate retail investors and promote standards of corporate governance amongst the companies.
- Company for which ordinary shares can be purchased on ASX – Abacus Property Group
- ASX Code – ABP
- Type of Industry – Real Estate
- Type of Business – Abacus Property Group is in the business of investing in real estate sector of the Australian commercial property markets. It primarily invests in core as well as property opportunities throughout the Australian continent. Its business includes investing in commercial, retail properties as well as industrial properties. Their core business idea is to invest in properties/real estate at discount i.e. opportunities which are having short term imperfections but have long term opportunity of growth in value. < ;
- Company for which preference shares can be purchased on ASX – Commonwealth Bank of Australia
- ASX Code – CBA
- Type of Industry – Financial Services
- Type of Business – It provides financial services in various sectors including retail (for personal and small business customers), funds management, business, investment, institutional banking, insurance, wealth management (fund management for HNIs and large business customers) etc. It also has wide range of product and services which includes saving accounts, current accounts, credit cards, debit cards, ATM machines, loan management, transactions etc. It caters to all kinds of customers ranging from small level retail customers to large institutional clients. All these kind of customers are served by varied divisions of this CB group. < ;