ASX stock codes. Every company listed on the Australian Securities Exchange is given a short code, usually made up of three letters. This is called a stock code, or ticket symbol, and it used to identify the company when you buy or sell shares. Instead of typing out the full company name, investors and…

What is an ETF? An ETF, or Exchange Traded Fund, is a type of investment that lets you buy a whole group of shares in one go. Instead of choosing individual companies, you buy units in the fund and the fund owns a basket of stocks. ETFs trade on the ASX just like normal…

Types of ASX brokes. When you open a broker account in Australia, you’ll usually ome across two very different ways of holding shares. CFD trading and CHESS-Sponsored holdings. Both let you buy and sell, but they work in very different ways. A CHESS-sponsored broker connects directly to the ASX settlement systems. CHESS stands for…

How to actually buy and sell shares. To buy and sell shares on the ASX you need to go through a broker. A broker is an online platform or service that connect you to the market. You open an account, transfer in some money and then you can place orders to buy and sell…

Stock settlement basics. When you buy or sell shares on the ASX, the deal doesn’t finish the instant you click the button.The trade is agreed straight away, but the money and shares ahve to be swapped behind the scenes. The process is called settlement. In Australia the standard is called T+2. The “T” stands…

Dividends explained. A dividend is a payment a company makes to its shareholders as a way of sharing profits. When you own shares in a company that pays dividends, you can receive regular cash payments just for holding the stock. Most Australian companies pay these twice a year, though some do it quarterly or…

What makes share prices move? The price of a share is not fixed. It moves up and down every day depending on what buyers and sellers are willing to pay. At the heart of this is supply and demand. If more people want to buy a share than sell it, the price tends to…

What is the ASX? The ASX, or Australian Securities Exchange, is the main marketplace where Australians can buy and sell shares in companies. You can think of it like a central meeting place where companies raise money and investors buy ownership. Companies choose to list on the ASX when they want to grow. By…