New Zealand Exchange Case Study

1075 Words 5 Pages
A.
The New Zealand Exchange or the NZX is subsidized by the New Zealand Clearing and Depository Corporation and has branches both at other parts of New Zealand and Australia.

It is described as a company that “builds and operates capital, risk, and commodity markets and the infrastructure required to support their clients”. Apart from this, they also provide information, data, tools, and the like related to agriculture sector of the two aforementioned countries that could help their clients make professional decisions.

Although there are other outlets for securities exchange, NZX is the only one registered. Apart from being allowed to deliver security exchange services, it is also authorized in futures exchange.

In terms of securities
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B)

There are six (6) markets listed under NZX. These include; NZSX, NXT, NXAX, NZX, NZDX, and NZZX.

NZSX, or the main board, is defined as the “original equities market”. It also the home of New Zealand’s best known brands and companies. Given that the main office deals with equity, this section of NZX deals with the concept or idea of fairness in terms of taxation and welfare. Given that it also includes tending to company brands and labels, it means it deals with client companies’ names and reputation.

NXT, the marketplace small to medium-sized and fast growing businesses, replaced NXAX. NXAX was the previous market responsible for providing capital facilities for growing businesses. NXT “provides a platform from which businesses can achieve their growth potential”.

NXT improved the primary capital offering of NXAX and provides “an opportunity to gain exposure to the next generation of kiwi companies”, this means they are doing more than providing monetary support or ones that involve resources; NXT focuses on sustaining the success of its client
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Each of these markets’ sole purpose is to help their client’s businesses grow and flourish with the help of its services.

Given that this is the objective of NZX as well as all its markets, client businesses are sure to make money choosing any one of the other markets.

Take for instance NXT. NXT is the improved version of NXAX. NXT not only helps clients kick start their companies by offering a capital service, they are also ready to help their clients make innovations in terms of products or marketing.

This, not only allows a n aspiring business man to start his own company, but guides him along the process to make sure that his business doesn’t fall. Availing NZX’s NXT would mean sure and reliable measures to earn money.

D)
A money market is defined as “a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year”. This means that it lends services in terms of lending

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