5 Facts About the Australian Stock Market

It pays to know a thing or two about the Australian Stock Market before you invest. Here are five facts every investor should know.

When you hear the words ‘Stock Exchange’, one immediately thinks of the New York Stock Exchange (NYSE). So, of course, you would. Moreover, it is where the great majority of stock traders spend a considerable amount of their time. 

But the NYSE isn’t the only way to earn money, short or long term. For example, the Australian Stock Market or Securities Exchange (ASX) is considerably smaller. But it is still a significant player in the worldwide market.

It’s a fantastic location for both long-term trading and short-term speculators. It also exposes you to the global economy. So before you invest, it’s a good idea to learn a bit about the Australian Stock Market. Here are five things that every investor should be aware of.

First a Short History About The Australian Stock Market

From the 1850s, stock markets sprang up in Melbourne, Bendigo, and Ballarat. Matthew Gregson (1828) and William Barton (1835) were the first to trade shares.

The Australian Stock Exchange was established in 1987 by six state stock exchanges.

The Australian Securities Exchange amalgamated with the Sydney Futures Exchange in 2006. ASX Limited is its full name and is now known simply as ASX.

1. The ASX Is the World’s 16th Largest Stock Exchange

The world has 195 nations. 193 countries are member states of the United Nations and two countries that are not. 

Australia’s economy ranks 13th globally. But, ASX is the world’s 16th most prominent stock exchange.

2. Australian Stock Market Share Prices

After inflation, the share prices of the 100 best firms have risen by an average of 6% each year during the last century. Thus, long-term, the various industrial sectors have fared equally, notwithstanding certain instances of over-and underperformance.

For example, bank stocks underperformed for decades after the Great Depression, whereas resource stocks thrived before the Poseidon bubble but suffered after that.

3. ASX Market Portfolio

Financial companies, especially banks and resource businesses, account for over half of the current stock exchange. The exchange’s industry makeup remains unchanged from 100 years ago. Many of the same firms, after some mergers and acquisitions, still dominate today.

4. Foreign Investors and the ASX

The fact of the matter is that the ASX is open to international investment. Establish a brokerage account with a broker, such as monexsecurities.com.au, that offers Australian or ASX-listed equities. You may create an account with them from virtually anywhere in the world in a couple of minutes. 

5. ASX Provides a Strong Widespread Market

Australia is one of the world’s economic powerhouses and has one of the most wealthy economies in the Asia-Pacific region. As such, it has many opportunities for short and long-term traders to profit and grow their wealth.

Australia is a nation with a lot of natural resources and a lot of energy output. However, it also contains thriving industries like banking, health, technology and research, and many more.

Don’t Miss This Booming Market!

Don’t ignore the Australian Stock Market as a trader due to the profit potential. Plus, if you ever want to visit the country, you won’t mind the year-round pleasant weather, busy cities, and gorgeous beaches.

Want more articles like this? Then, keep on reading our blog.


Leave a Reply

About Marc Wallace

I'm never too busy to share my passion. I've created this page to help people learn more about business, finance and real estate. Besides all the serious stuff, I'm also a man that values family and healthy relationships. I hope you find my content insightful.

Recent Posts