FINS1612 Study Guide - Final Guide: Initial Public Offering, Market Capitalization, Investment Fund
Document Summary
Buy/sell orders are placed into asx trade by authorised brokers. The system matches orders and executes the trade: operation of a clearing and settlements system global competitive forces require exchanges to settle stock transactions within t+3 days. This time line may be reduced even further as systems become even more efficient. The system used by the asx is known as chess. The asx has its own set of listing rules. This includes the listing of ordinary shares, hybrid and debt securities: a modern and efficient stock market, incorporating a deep and liquid primary and secondary market, encourages investors to provide investment capital to corporations. Corporations occupy the central position in the process, receiving funds from the issuance of securities. Underwriters and advisors guide corporations through the issuance process and funds flow through brokers from individuals, institutions and overseas investors with surplus funds to invest.