Firstly, most of us would rather have Re 1 today than Re 1 tomorrow (and Re 1 to be received in 2100 seems practically worthless today); secondly, if the interest rate is 8 percent per annum, I can 'buy' Re 1 per year by putting Rs 12.50 in the bank. Now, if interest rates rise overnight to 10 percent, that same annual income of Re 1 per year will cost only Rs 10. Since fixed income streams suddenly became affordable, share stock system trading should also become affordable. The inverse relationship between interest rates and share value generally holds true, but in finance markets, stock prices have not reacted to the recent increase in interest rates. This is because development in share stock system trading earnings has been so strong.

This means that the price we are willing to pay for a share stock system trading basically depends on its current earnings (the P/E ratio); but more importantly, it depends on our expectation that earnings will grow over time. As the Australian economy has gathered steam, companies across sectors have shown earnings growth year on year.

In the event of liquidation, Australia share stock system trading have rights to a company's assets only after bondholders, other debt holders, and preferred Australia common shares have been satisfied. Typically, Australia common shares receive one vote per share to elect the company’s board of directors (although the number of votes is not always directly proportional to the number of share stock system trading owned). The board of directors is the group of individuals that represents the owners of the corporation and oversees major decisions for the company.

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