- published: 31 Mar 2014
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New Zealand (Māori: Aotearoa) is an island country located in the southwestern Pacific Ocean. The country geographically comprises two main landmasses ‒ that of the North and South Islands ‒ as well as numerous smaller islands. New Zealand is situated some 1,500 kilometres (900 mi) east of Australia across the Tasman Sea and roughly 1,000 kilometres (600 mi) south of the Pacific island nations of New Caledonia, Fiji, and Tonga. Because of its remoteness, it was one of the last lands to be settled by humans.
During its long isolation, New Zealand developed a distinctive biodiversity of both animal and plant life. Most notable are the large number of unique bird species, many of which became extinct after the arrival of humans and introduced mammals. With a mild maritime climate, the land was mostly covered in forest. The country's varied topography and its sharp mountain peaks owe much to the tectonic uplift of land and volcanic eruptions caused by the Pacific and Indo-Australian Plates clashing beneath the earth's surface.
A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.
To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members only.
The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks (see stock valuation).
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