What is the Australian Securities Exchange known for?

The Australian Securities Exchange (ASX) is primarily known as a major secondary market where previously issued securities are bought and sold. This means that it facilitates trading of shares that have already been issued by companies, enabling investors to acquire or divest their holdings without the involvement of the issuing companies. The secondary market is vital for providing liquidity, allowing investors to easily convert their investments into cash by selling them at market prices.

While initial public offerings (IPOs) are an important function of the ASX, they represent a one-time event where a company issues shares to the public for the first time. Derivative trading also occurs on the ASX, involving financial contracts whose value is derived from the underlying assets, such as stocks or commodities. Banking operations, however, are outside the domain of the ASX as it focuses specifically on securities trading rather than banking services. Thus, being a major secondary market is the most defining characteristic of the ASX.