Principles of Economics

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principles of economics pdm pt April 2013/15 telisha naidu - 760057
Professor Frederick Ahwireng-Obeng principles of economics pdm pt April 2013/15 telisha naidu - 760057
Professor Frederick Ahwireng-Obeng

Table of Contents
Introduction 2
Year 2011 at a glance 3-4
An overview of 2011 5
Year 2012 at a glance 6
An overview of 2012 7
Conclusion 8-10
References 11
Appendix 12

Individual Assignment: For a market or markets of your choice, keep track of the spot or share price fluctuations during a period of at least two years. Prepare a report of approximately 3000 words for each market discussing in detail the multiple forces responsible for the trend.
Company: The JSE (Johannesburg Stock Exchange)
This market is characterized as being a monopoly. Pure monopoly exists when a single firm is the sole producer of a product for which there are no close substitutes (Van Rensburg, 2012, pp 155-158). The JSE is the country’s only regulator of trading of financial instruments. It is also a listed entity and the regulator of the participants who trade in the different markets – further to the JSE playing a dual role as regulator and listed entity, the JSE also clears and settles all trades, this function is normally carried out by an independent Clearing Counter Party (CCP). In 2001, the JSE purchased the ‘South African Futures Exchange’ (SAFEX) making the JSE the sole owner of all the financial exchanges in South Africa. Further to this, in 2009 the exchange purchased the ‘Bond Exchange of South Africa’ (BESA), creating a unique and monopolistic market as compared to other countries around the world. The JSE is also a stakeholder in STRATE-‘Share Transactions Totally Electronic’, furthering the monopolistic structure they have created within the South African structure.
JSE Ltd (“JSE”) is licensed as an exchange under the…...

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