The US and Australian share markets have seen some significant falls in the last few months. The Dow Jones hit an all time high of 26,617.71 but then fell 4 per cent by the end of the following week. Many investors are surprised at why markets can fall away so quickly, especially when not much seems to change with the underlying companies. In this article we discuss some of the reasons causing stock markets to fall. Inflation There have been …
Why Companies Delist Companies need to maintain certain requirements by the stock exchange to continue as a listed company. Some of these requirements for the ASX include a minimum of 300 non-affiliated investors and a market capitalisation of A$15 million. Stocks can voluntary or involuntary delist. Involuntary delisting can occur when the company has breached one of the requirements of the stock exchange. Another reason may be the company is in liquidation and unable to operate. Voluntary delisting means the …
What is the Stochastic Oscillator Indicators can be leading or lagging. The difference is that leading indicators gives signals before the uptrend or reversal occurs and a lagging indicator gives signals after the trend has started. The downside of a lagging indicator is that they identify trends that have already started so there is less profit to be made. Leading indicators can identify the trend before they take place. However, they should be used in conjunction with moving averages and …
Australian share investors are aware that the major indexes locally are the S&P/ASX200, and the All Ordinaries. Investors are also aware of overseas indexes such as the Dow Jones and the FTSE. But many may not be aware of how the indexes are comprised and what they represent. Here we list the major indexes that traders use to evaluate each global market and how each index is calculated. Dow Jones This is an index which tracks the stock price movements …
The state of the economy plays an important part in the stock market. Analysts evaluate the economy is great detail as it affects the decisions they make on what sectors or stock to recommend. A strong economy would instigate a different trading strategy compared to a weak economy. These are the seven signs which show that the economy is recovering and gaining strength. 1.Strong employment numbers To see economic growth there needs to be an increase in Gross Domestic Product …