Forex glossary of terms
Australian Stock Exchange - ASX
The history of the Australian Stock Exchange, or ASX, starts with the six capital city exchanges that were established in the late 1800s. From 1903 until 1937, these state stock exchanges began meeting on an informal basis. By 1936, Sydney had taken the lead in formalizing the association and in 1937 the Australian Associated Stock Exchanges (AASE) was established.
On April 1, 1987 the Australian Parliament passed legislation forming the Australian Stock Exchange Limited (ASX). Forming a national stock exchange formally brought together the six independent stock exchanges operating in the capital cities.
Approximately 1,785 companies are traded on the ASX with an average trading value of $31,100 AUD and an average price per share of around $3.35. These same companies had a combined market capitalization of $1.1 trillion (AUD) as of February 2006.
The developments in the Australian Stock Exchange in recent years is being driven by a variety of factors, such as the demands of exchanges customers, the intermediaries using them, competitive pressures and technological changes. It is a trend to which Governments and regulators must respond to ensure that the path is clear for Exchanges to compete freely in this dynamic environment and also to ensure that economies can keep pace with the burgeoning flow of financial products being created and traded world wide.
It is clear that technology is one of the driving influences in creating new market opportunities for Exchanges. Technology has exposed domestic suppliers to greater competition, driven innovation in developing products, and driven innovation in distributing products. Now producers and suppliers can reach across geographic barriers to different cities, and different countries, and different parts of the world, to different consumers, with an explosion of products matching the demands of increasingly sophisticated consumers who can access those products via the internet.
In the past where producers and suppliers were banned because of geographic barriers, now they reach across those barriers, they reach across the regulatory geographic areas, they reach across the old characteristics and the old demarcation lines. And technology, competition and consumer demand are blurring traditional boundaries between products.
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