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27 Cards in this Set
- Front
- Back
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what is a share |
partial ownership of a company |
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advantages of public companies listing |
allows expansion, exposure, attract investors |
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disadvantages of public companies listing |
ownership is diluted, ASX reports required, directors accountable |
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advantages of investing in share market |
liquidity and flexibility |
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liquidity |
when investing in shares, you have access to you money within 3 days, compare this to real estate |
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flexibilty |
if investors are not satisfied with the returns of a company, they can always sell and buy different shares |
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income shares |
historically paid larger dividends, this type of investment can be used to generate income with selling shares |
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blue chip shares |
long histories of growth and stability, usually pay regular dividends and maintain a fairly steady price trend |
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growth shares |
entrepreneurial companies experience a faster rate of growth than their general industries. normally pay little to no dividends because the business needs the finance to expand. |
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close |
the price the share was sold for in the last sale of the day |
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+ or - |
the amount by which the last price is up or down on the previous day, expressed in cents |
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vol100's |
number of shares sold at the close of the trading day, in numbers of 100 |
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buy |
the highest buying bid recorded at the close of trading that day |
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Sell |
the lowest price recorded at the close of trading that day |
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yeild |
the dividend paid by the company is expressed as a percentage of its current share price dividend per share approx yeild = ------------------------------- x100 share price |
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high/low |
the highest and lowest sales recorded during the past year of trading |
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consideration |
price of the shares x amount of shares |
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brokerage |
stock brokers fee x consideration |
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GST |
0.1 x brokerage |
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break even price |
break even price will find the amount needed to sell shares in order to make a profit or capital gain |
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ASX |
Australian Stock Exchange |
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dividend |
distribution of a companies net profit to share holders based on amount of shares |
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to find dividend price |
total dividends div per share= -------------------------- number of shares |
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dividend paid |
div paid = number of shares x div. per share |
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exact yeild (as %) |
total dividend paid --------------------------- x100 total cost |
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approx. yield (as %) |
dividend per share ---------------------------- x 100 market value |
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steps to find yield
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cost of investment calculate the div paid calculate yield |
