Lauren Hua
BHP is returning the US $5.2b (A $7.2b) proceeds from the sale of its Onshore US assets to shareholders. The balance of the sale will be returned via the special dividend which is fully franked in January 2019. The reason BHP have chosen to do this buy back off market instead of buying shares on market is that the buy back allows the company to purchase the shares at a discount of up to 14 per cent to the market …
Most investors would know that just because a listed company’s share price changes daily, it doesn’t mean that the that anything fundamental has necessarily changed on that particular day. Listed companies originally receive funds when they sell shares through an Initial Public Offering (IPO). It is within the secondary market on the stock exchange where the share price is determined by the interest between the buyer and sellers. However, even though a company does not directly lose money when their …
Read MoreHow does a decline in share prices affect companies?
The month of October 2018 has been a rough ride for global stock markets. We had significant drops on the Australian market which saw the S&P/ASX 200 dropping 164.90 points on 25 October and was trading near its 12-month low. The Australian share market was down 10% from the 2018 highs. Although the market has had a significant drop, it would be classified as going through a correction and not a crash. A crash is more severe as recession and …
Read MoreThe Difference Between a Stock Market Correction and Stock Market Crash
Interest rates can convey the health of a country’s economy. Lower interest rates can help promote borrowing and therefore stimulate an economy which is struggling. The downside is that lower rates can stoke the fire of inflation. When the economy is doing well, central banks will raise rates to take a bit of heat out of the system. A hike in interest rates therefore means that the economy is doing well. The Australian cash rate has been on hold since …
Read MoreHow Does the Rise of the US Cash Rate Affect Australia?
The definition of a stock market correction is when stocks decline more than 10%from a recent high. A crash however is when the stock market falls 10% in one day. We recently saw the Dow Jones drop 831.86 points on 10 Oct 2018. This was a 3.1% drop and the biggest sell-off of the year to date. However, this would only be considered a correction and not a crash. These are the reasons a stock market may correct. What causes …