Question

write a essay explaining the stock market structure in fiji and describing the reguations used by spse to govern its isted cmpanies and stockbrokers

Answer 1

the stock market structure in fiji can be defind by Market structure is defined as the particular environment of a firm, the characteristics of which influence the firm’s pricing and output decisions. There are so mainy theories of market structure

Pure competition

Monopolistic competition

The theory of monopolistic competition is built on three assumptions:

(1.) There are many sellers and buyers.

(2.) Each firm produces and sells a slightly differentiated product.

(3.) There is easy entry and exit.
     The monopolistic firm has no rivals, and it produces a good for which there are no substitutes. In a monopolistic competition, it has a downward slope. This means that it has to lower price to sell an additional unit of the good it produces. Just like the pure competition, monopolistic firm charges the highest price it can possibly charge for its product.

Evaluating Market Structures Economics 212 Abstract Many types of market structures exist, with each market structure proving more effective than the other for certain firms. If a firm choses to enter a different market structure then that firm's financial success will either diminish or flourish accordingly; the latter is usually the case regarding monopolistic competition market structures in the short run. Firms in this market structure must compete by using strategies, hiring skilled labor, evaluating

the reguations used by spse to govern its isted cmpanies and stockbrokers

Why Regulation? Do you know what a ‘security’ is? Our laws provide an inclusive definition of ‘securities’. It says that ‘securities’ include shares, bonds, debentures, units of CIS, etc. It does not define in terms of ingredients an instrument must have to be considered as ‘securities’. I have not seen an ingredient type definition of ‘securities’ in any other jurisdiction. It is precisely because ‘securities’ are most insecure instruments. The only ingredient common to all types of securities is its associated ‘insecurity’. It is like a blind man named padmalochan. If it is a market for such insecure instruments, market would collapse if somebody does not regulate away the insecurities

The self-regulatory organizations (SROs) like stock exchanges have also laid down their rules of game Securities market is regulated by following governing bodies:

1. Securities and Exchange Board of India (SEBI)

2 Department of Economic Affairs (DEA)

3 Department of Company Affairs (DCA)

4 Reserve Bank of India

5 Stock exchanges

- Significant among the legislations for the securities market are the following:

1 The SEBI Act, 1992, which establishes SEBI to protect investors and development

and regulate securities market. All the powers under this act are exercised by SEBI.

2 The Companies Act, 1956, which set out the code of conduct for the corporate sector

in relation to issue, allotment and transfer of securities, disclosures to be made in public issues and non payment of dividend. Powers under this Act are exercised by SEBI in case of listed public companies and public companies proposing to get their securities listed.

  The Securities Contract (Regulation) Act, 1956, which provide for regulation of

transaction in securities through control over stock exchanges. Most of the powers under this act are exercised by Department of Economic Affairs (DEA), some are concurrently exercised by DEA and SEBI and a few powers by SEBI.

The Depository Act, 1996, which provides for electronic maintenance and transfer of ownership of dematerialized securities. SEBI administers the rules and regulation under this Act.