 | Term | Definition |
| |
ASX Role |
Central stock exchange - facilitate & issuing shares through primary market - Regulate stock broking industry. |
| |
ASX Obj. |
Ensure mkt for share efficiency, fair, honest, competitive & informed |
| |
Equity Instrument |
Ordinary - Preference - Convertible bonds - Options - Warrants |
| |
Ordinary |
Common - Ownership interest - Residual claim - Voting rights - Ltd. Liability - Irredeemable |
| |
Preference |
Preferential ranking - Fixed dividend - Less risk - Hybrid - Cumulatve - Participative - Redeemable |
| |
Convertible Bonds |
Right to convert bonds to shares - Cheaper form of debt - Investor exposure |
| |
Share options |
Company receive premium |
| |
Warrants |
Applies to share options - Creation of new shares - shareholders dilution - options to buy shares which are issued by the company which issues the shares which are to bought under the warrant |
| |
Dividends |
Common method - cents per share - discretion of management |
| |
Bonus Dividends |
Distribute higher-than-normal profit |
| |
Bonus Shares |
Increase no. of shares but don't add value |
| |
Click XT |
system on which brokers matches the highest bids with the lowest offers |
| |
CHESS |
CHESS is the Clearing House Electronic Sub-register System - transfers ownership and keeps ownership records of shares. |
