The Australian Securities Exchange (ASX) operates Australia’s major sharemarket.
At 30 June 2010, the ASX included 2,192 listed companies with a market capitalisation of $1.65 trillion. The ASX has raised $77 billion in capital and ranks eighth on the MSCI Global Index.
Buying and selling shares on ASX
Investors can buy and sell shares in ASX-listed companies by placing an order with a stockbroker. Generally, you can place an order with a stockbroker over the phone, by email or online.
When placing an order to buy shares in a listed company, your broker places your order into the ASX trading system. Here, the order is matched with another investor who has placed an order to sell shares in that company. Orders are processed by price according to when they were received.
Share trades are settled on the third trading day following the trade. This is referred to as T+3.
Holding shares purchased on ASX
When you buy ASX-listed shares, you have the option to register your shares on either the:
- CHESS sub-register under a Holder Identification Number (HIN), or
- Issuer sponsored sub-register under a Security-holder Reference Number (SRN).
CHESS sub-register under a HIN
You can elect your broker (or other party such as a financial advisor) to act as your CHESS Sponsor for your shareholdings.
By doing this, you make an agreement with your CHESS Sponsor setting out the terms and conditions under which they can operate your CHESS holdings on your behalf. You remain the legal owner of the shares. You can have an agreement with more than one CHESS sponsor and you will have a separate HIN for each broker sponsoring your shares.
Issuer Sponsored sub-register under an SRN
Alternatively, you can hold shares on the Issuer Sponsored sub-register. By doing this, you have a different SRN for each parcel of shares you own.
Registering shares on the CHESS sub-register generally provides more benefits such as greater security, efficiency and convenience.
ASX indices
ASX indices provide a guide to the performance of an asset class or a particular segment within that asset class. An example is the S&P/ASX 100 index, which includes 100 large and mid cap ASX-listed companies.
Indices are also used as benchmarks for the performance of investment portfolios and investment products such as managed funds and ETFs.
Learn more about ASX indices.
ASX company announcements
ASX-listed companies must advise the ASX of any information that could affect trading in that company. This information is often referred to as market sensitive information, with companies required to make the announcement through the ASX before publicly releasing the information.
ASX company announcements are posted on the ASX website and made available to the public. This ensures that information that could affect the company’s share price, either positively or negatively, is available to all investors at the same time.
You can read the latest announcements from ASX-listed companies by visiting the ASX website.
New share floats (IPOs)
When a company seeks to raise capital, it may offer new shares to the public through an initial public offering, commonly called an IPO.
Learn more about initial public offerings.
Other investments available through ASX
The ASX provides a number of investment products including:
- futures and options
- property trusts
- infrastructure funds
- warrants
- exchange traded funds (ETFs)
- contracts for difference (CFDs), and
- interest rate securities.
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