Equity can be represented in many forms (which ways we can describe)
Respresents portion of ownership in an entity
Focus on company structure in this module/ course shares issued by a company evidences equity ownership Networth=equity Goodwill- asset Intangible goods Share script. When comparing appropriate business structures for investors (particularly where investors are not involved in the direct management of the business relevant factors to assess include Ordinary shares Pereferance shares Types Company shares may be listed (publically registered on a securities exchange for trading purposes) or unlisted (traded privately). Also known as the stock market The role of the stockmarket is to act as an exchange- in an orderly and liquid context. ASX- a well informed and transparent market for the trading in a range of financial securities on the asx this is achieved electronically via the itsintergrated transaction system A system allowing for the clearing and settlement of securities on the asx this is the chess system requiring settlement on the terms T+3 Weights may be determined either by market capitalisation (number of issued shares x current price.) note these indivies are based solely on share price changes Accumulation indicies includes both shares price changes and reinvestment of dividends Dowjones-30 Where supply > demand on average prices will fall Where supply <demand on average prices will rise Dividend yield: dps/share price Earnings yield: eps/share price Required rate = 10% K= 10% buy because that is what we want Fundamental analysis-process u are using based on TVM context
Or technical analysis- trends in prices as a precursor, share prices follow a
random walk Investors are rational Managed fund 20-30 to diversify to get rid of risk