The ASX is an organisation that facilitates the trade of a variety of financial securities such as shares in public companies that have chosen to be "listed" on the exchange. The ASX itself is a public listed company itself. The fundamental role of the ASX is to enable business owners to raise capital from the general public by issuing various tradable securities, and to facilitate a secondary market for those securities. Investors use the exchange to buy and sell securities in order to gain, increase, decrease or otherwise manage their exposure to businesses. The ASX deals in many other securities as well, such as options, futures contracts, and so on which all have special rules and obligations associated with them.
The aim of this assignment is to allow you to understand how the ASX operates and why it is important. Please read through the ASX information links on Moodle.
In theory you have $50,000 to invest in Mining Companies listed on the ASX. You task is to select a small number of mining or mining related stocks to invest in and to trace their performance for the duration of this course.
Of course your aim is make a profit!
You should chose only 6 stocks only one of which can be a ‘big' company. Please not Rio!
I require you to select 3 stocks at the beginning to be locked in for the duration.
You can choose 2 or 3 others that can be traded at will.
Your strategy should be summarized in your ASX Wik
In addition you should maintain a record in your Wiki of the following. Account for why you chose your stocks.
Keep notes on the companies that you invested in, in terms of their mining operations/prospects - what they mine, volume mined, where located etc. Are they often in the news?
Track the value of yourstock against the exchange rate of the Australian $, the gold price and the oil price via an Excel sheet. Determine if there is a relationship.
Through the use of sample graphs etc, record the performance of your stocks in a format that you could present to an audience.
State what you would do differently next time and why.
Did the group approach work well? Why or why not?
Any other relevant comments.
Summarise the above in the final submission