Blog Feed – Ezzat Daniel Nessiem – Financial Administrator

How to make a homemade mask?

With the new COVID-19 popularly known as coronavirus raging across countries, the need for maximum protection of oneself has become a must.

It is however not surprising that hand sanitizers, alcohol wipes, including face masks have started disappearing from the stores’ shelves. After all, these are some of the essentials required to stay protected during this outbreak.

While the street is covered with people and canine wearing face masks, stores are running out of it. Not only that, but surgical face masks also come with some pennies. Hence, here comes the questions popping up on everyone’s mind- can I DIY face mask? How effective are they in protection? How can I make a homemade protective face mask?

Well, Ezzat Daniel Nesseim, an Australian based finance expert is here to answer your questions and walk you through the process of making your own protective face mask. Let’s dig in!

How effective are DIY face masks

The most effective ways of protecting yourself during this time are properly handwashing or sanitizing the hands, practicing social distancing and wearing a face mask.

Research has shown that the surgical mask captured around 80-95 percent of particles. The good news is DIY mask has also proven to be effective. It reduces the transmission of infectious diseases with almost 90 percent of the filtering capabilities of surgical masks.

However, before proceeding on how to make one at home, you might as well know the pitfalls of face masks

Wearing a face mask over a long period of time comes with challenges. The air intake is being restricted and breathability might be a bit difficult. Hence, consider limiting the wearing to only crowded places. Besides, people with respiratory problems, cardiac or any other breathing-related medical conditions should check with their health providers before wearing a face mask.

It is important to note here that wearing a face mask is not a guarantee that one cannot contract coronavirus. Even the most effective face mask which is an N95 respirator does not only makes breathing difficult and also blocks only 95 percent of small particles even when worn properly.

It is no surprise that CDC and health officials keep raising awareness to stop the purchase of face masks. Partly because of its downfalls and the need to make it available for those who need them the most.

Here are our top-rated picks in ultraportables, two-in-ones and laptops for creatives and gamers and even our favorite budget-friendly options.

This list is your first stop to discovering the best of our top-rated laptops. Some of our top picks are here for battery life and performance, others for style and features, and a couple because they’re just all-around good deals. Whether you’re looking for something for work or entertainment, for home or travel, or a two-in-one or traditional clamshell, this list has them all. We’ve considered all of the details — not just battery life. This means we’ve taken into account everything from the number of gigabytes of RAM and the refresh rate to the quality of the screen and keyboard.

Best Windows Ultraportable

We already had the XPS 13 as a top pick for anyone looking for great performance and battery life in the smallest chassis possible for a 13.3-inch screen size display. But for 2019 Dell also fixed our one complaint by moving the webcam back above the display. This device has 16 GB of RAM, a backlit chiclet keyboard, several USB ports and even a fingerprint reader. Not too shabby.

HP Spectre x360 13 (late 2019)

HP outdid itself on its latest ultraportable premium two-in-one. At first glance it might seem like little more than a processor update — it’s running on a great 10th-gen Intel CPU — the latest x360 is significantly smaller than its predecessor without sacrificing usability. New features like an instant mic mute button join other privacy and security features like an IR camera and fingerprint reader and switch to disable its webcam. Plus, it’s available with 4G LTE wireless so you can get your work done wherever and whenever you want.

Microsoft Surface Pro 6

The Surface Pro continues to hit all the right notes if you’re looking for a do-it-all Windows tablet that doubles as a Windows laptop. These powerful laptops feature the 8th Generation Intel Core processor and long-lasting battery life. Microsoft recently announced the updated Pro 7, but expect the Surface Pro 6 to hang around at potentially lower prices, especially bundled with its excellent keyboard and pen.

Apple MacBook Pro

The combination of the MacBook Pro’s hardware and MacOS extracts the maximum performance from the components while delivering class-leading battery life in a way Windows systems never seem to do, and the high resolution display screen remains terrific. You pay for it, though — base price for the 15-inch model of this device is $2,399 and that’s with a meager 256GB SSD hard drive. And you’ll have to overlook the keyboard’s potential shortcomings.

Razer Blade 15 Advanced

Razer’s featureless-slab aesthetic slips seamlessly fits into almost any environment, and if you opt for one of the higher-end configurations it’s (unsurprisingly) a great laptop for both creative work and gaming. If you’re willing to go with black and an emptied wallet, you can get an Adobe RGB calibrated 4K OLED display and a GeForce RTX 2070 for $3,300.

Apple MacBook Air

This is our go-to recommendation for those in search of a MacOS laptop for everyday basic use. The MacBook Air was updated earlier in the year with Apple’s True Tone display, new processors and a $100 price drop. As Apple’s most affordable laptop starting at $1,099, it’s not exactly a bargain and you can get a lot more computer for your money if you go with Windows. Regardless, the Air remains one of the best laptops available for battery life, performance and design.

Acer Predator Triton 500

A gaming powerhouse with a Core i Processor in a thin and light package. The keyboard isn’t terrific and it can run hot and loud, and like any gaming laptop the battery life is pretty short. But if you need maximum graphics, a quick refresh rate and CPU performance in a reasonably portable laptop, this is a good option.

Toyota HiLux Review by Ezzat Daniel Nesseim

There was a time when you’d only ever see a Toyota Hilux on a building site or farmyard. They may have been very capable off-road and blessed with legendary reliability, but on the road they were slow, unrefined and uncomfortable. That said, the rest of its pick-up rivals couldn’t claim to be any better on the black stuff.

Skip forward to the present day and pick-ups have become an increasingly popular alternative to large SUVs. While improvements to how they drive have helped, we suspect the tax savings available to company car users are more of an incentive. You see, any pick-up with a payload of 1000kg or more is classed as Light Commercial Vehicles, which in finance terms means a fixed road tax and benefit-in-kind price based on age, regardless of how big it is, how thirsty the engine is or how much it costs.

Like most rivals, the Hilux is available as a two-seat single cab, an extra cab with a couple of occasional rear seats and finally as a double cab. With four doors and usable rear seats, it’s no surprise that the double cab is the most popular option. As for engines, there’s a single 2.4-litre diesel with 148bhp, available with both a manual or five-speed automatic gearbox.

100% Working Safety Hacks for Corona Virus

The news of the novel corona virus spreading worldwide and even surpassing the originated place, mainland china is raising concerns, chaos, and worries among businesses and employees in the workplace. Australia is also not an exception as the corona virus cases have continued to soar after the first case has been reported in January 2020. Hence, it’s no surprise that businesses are concerned and seeking answers on how best to respond to employees’ fears and protect them from the spread of the virus. Either you are working in virus prone areas such as airline, healthcare, or not, here are working safety hacks given by Ezzat Daniel Nesseim to help protect the workplace and employees from spreading the virus and ensure a safe work environment. Let’s dive in!

Employers should be prepared to respond to :

Employees’ fears and unwillingness to continue working with employees, customers, partners or others who have just returned abroad or from the affected areas.

Incorporate risk management strategies for employees involved in international travels

Respond positively to employees who have recently travelled to and fro the affected areas

Guide responses to employees who feel sick or has a family member that is sick

Here are ways to protect the workplace from CoronaVirus in Australia

Avoid close contact with people who are sick

It has been confirmed that the primary means in which the virus spread is through person to person contact. That is:

Between individual who is in close physical contact with a person already having the virus

Through infected droplets produced when an infected individual speaks, coughs or sneezes

Droplets that find their ways into the noses, mouths of other people nearby.

What can be done in the workplace:

Employees should avoid being near anyone showing respiratory diseases such as coughing and sneezing.

A sick employee can be given a paid sick leave to allow for the diagnosis and treatment of the condition.

A sick employee should stay home and keep away from public areas such as work or errands to prevent the spread of the illness

Practise respiratory hygiene and cough etiquettes

Cover the mouth and nose with a tissue while sneezing or coughing. Or cover with the crook of the arm if there is no tissue available.

Throw away used tissue immediately in closed bins and in case there are any spit or mucus on the skin, wipe out immediately. Do not forget to wash the hands after coughing or sneezing.

Carry put regular handwashing with alcohol-based sanitisers. Whether before eating or after going to the bathroom or generally when it appears unclean, it is very vital to wash the hands regularly to kill any virus or bacteria your hands might have come in contact with

Incorporate other good health hygiene such as stress management, eating good food, staying hydrated and getting enough rest.

“These are basic health hygiene that should be practised every day either an individual is at risk or coronavirus or not.:” says Ezzat Daniel Nesseim.

Perform routine workplace cleaning

Employers should make it a priority to ensure all commonly touched place in the workplace should be disinfected and sanitised. This includes the doorknobs, countertops, telephones, computers, toilets, bathroom sinks, switches, handles( among others)

Provide employees with sanitizers and disposable wipes to ensure these places are wiped after each use.

If possible, avoid touching commonly used surfaces such as elevator button, handrails or even shaking of hands with people. Wipe the areas first or use tissues to cover your hands if you must touch those surfaces.

Since the virus is also spread when a person touches the contaminated surfaces or areas and then touches the nose and mouth, therefore, avoid touching eyes, nose and mouth.

Communicate with employees about travel plans

Communicate with employees who need to travel and strongly advice them against travelling to infected areas. Better still, every travelling plans can be postponed or cancelled.

Employees who decide to travel should be advised to check themselves of any symptoms of the virus after their return to avoid infecting others.

Employees who are forced to be quarantined or are stuck in overseas should not hesitate to speak with the employers and carried them along with the situations they found themselves. An individual hooked down in affected areas can ask for a paid leave or long leave and should reach an agreement with the employer in regards to payment and leave.

Share measures, objectives and, means of protection with employees

Organisations should see it as there responsibilities to reduce concerns, share organisations objectives and communicate with employees on the steps being taken to combat the spread of coronavirus.

Educate workforce members on how to protect themselves, and share strategies and guidelines to curb the spread of the virus.

More importantly. Employees should be guided on the best defence against coronavirus which is a strong immune system. Therefore, everyone should be put in their best effort to ensure their body is armed with defensive attacks against the virus. This comes with adequate rest, eating a nutritional meal, avoiding junks and overprocessed food and staying hydrated.

Difference between Journal and Ledger

Double entry system of bookkeeping says that every transaction affects two accounts. There is a proper procedure for recording each financial transaction in this system, called as accounting process.The process starts from journal followed by ledger, trial balance, and final accounts. Journal and Ledger are the two pillars which create the base for preparing final accounts. The Journal is a book where all the transactions are recorded immediately when they take place which is then classified and transferred into concerned account known as Ledger.

Journal is also known as book of primary entry, which records transactions in chronological order. On the other hand, Ledger, or otherwise known as principal book implies a set of accounts in which similar transactions, relating to person, asset, revenue, liability or expense are tracked. In this article, we have compiled all the important differences between Journal and Ledger in accounting, in tabular form.

Definition of Journal

The Journal is a subsidiary day book, where monetary transactions are recorded for the first time, whenever they arise. In this, the transactions are regularly recorded in an orderly manner, so that they can be referred in future. It highlights the two accounts which are affected by the occurrence of the transaction, one of which is debited and the other is credited with an equal amount.

A short note is given in support of each entry, which gives a brief description of the transaction, known as Narration. The complete process of recording the entries in the journal is known as Journalizing. It has five columns which are Date, Particulars, Ledger Folio, Debit, and Credit. A journal can be:

Single Entry: Entry having one debit and a corresponding credit.
Compound Entry: Entry having one debit and more than one credit or entry having more than one debit for a single debit or two or more debit and two or more credits. In the case of compound entry, it should be kept in mind that the total of debit and credit will tally.

Definition of Ledger

Ledger is a principal book which comprises a set of accounts, where the transactions are transferred from the Journal. Once the transactions are entered in the journal, then they are classified and posted into separate accounts. The set of real, personal and nominal accounts where account wise description is recorded, it is known as Ledger.

While posting entries in the ledger, individual accounts should be opened for each account. The format of a ledger account is ‘T’ shaped having two sides debit and credit. When the transaction is recorded on the debit side the word ‘To’ is added, however, if the transaction is to be recorded on the credit side, then the word ‘By’ is used in the particular column along with the account name.

At the end of the financial year, the ledger account is balanced. For this purpose, first of all, the totals of the two sides is determined, after that, you need to calculate the difference between the two sides. If the amount on the debit side is more than the credit side, then there is a debit balance, but if the credit side is higher than the debit side, then there is a credit balance. Suppose if an account has a debit balance, then you have to write “By Balance c/d” on the credit side with the difference amount. In this way both the sides will tally.

Now, at the beginning of the new period, you have to transfer the opening balance to the opposite side (i.e. On the debit side as per our example) as “To Balance b/d”. Here c/d refers to carried down, and b/d means brought down.

Conclusion

In the beginning, we talked about the procedure of recording a transaction. It involves a series of actions like they are first recorded in the journal, from there they are classified and grouped into separate accounts and posted into the ledger, which is then transferred to trial balance and at the end the final accounts are prepared.These steps provide a base to prepare the financial accounts of a company. If any of the above steps is missing, then it would be hard to prepare the final accounts.

Stock Market Investment and Goals

Having your money work for you without you working for money is one good thing about investment. You put your money or capital in investment vehicles that drive more money over time while you simply scale through life. This is an excellent way of growing wealth but if not done properly, it can drive your wealth to the drain. If you are just setting out in the stock market investment, here is Ezzat Daniel Nesseim, a financial advisor and investment expert, to walk you through getting started as an investor in the stock market.

Define your investment goals

The first thing to do before anything is to have laid down investment goals, how you want to achieve them and the level of risk you are willing to take. Do you want to be actively involved in the investment or you want to just invest and leave it there? Are you ready to pay higher fees for less commitment or low fees for more commitment to the investment? Is your investment for short term goals or long term goals?

Many online brokers will ask you your goals in order to tailor the investment in regards to that. If you are investing for maybe less than five years, you might want to consider investing in bank certificates, bonds, money market mutual funds among others.

Another aspect is your risk tolerance. The stock market is hardly stable and it swings up and down. if you have a low level of risk tolerance, your best bet is to go conservative.

Determine how you want to go about the Stock Market Investment

“When it comes to the stock market, it is either you already know how to play the card and or you are a beginner and you need someone to manage your investment for you,” says Ezzat Daniel Nesseim. Whatever the category you belong to, examine these options and know how you want to invest.

Brokers:

For a full-service broker, you will have to pay a substantial amount but it comes with more useful recommendations and information. They provide a full spectrum of brokerage services including financial advice, retirement planning, tax tips and many more.

There are also discount brokers offering the least expensive paths to stock investment and they also provide tools such as an investment account to place your investment. Some of them also offer Robo advisory services as well for those who are just starting out on stock market investment.

Before selecting broker, assess them based on the minimum deposits restrictions, fees, and commissions, investment research, and tools provided.

Robo advisors:

Various companies that leverage technology to provide investment advice and lower investment cost have emerged. This service makes investment decisions for you based on your investment goals. If you don’t know much about stock investment, consider opening a Robo advisor account and avail of full investment management. As compared to hiring money managers, the Robo advisor is a low-cost management alternative.

Money managers:

Money managers work with financial advisors, retirement planners, researchers and investment managers who have deep knowledge of the stock market. They provide experts advice required for making smart investment decisions, help with portfolio mix and ensure you get the most of the investment. It is a good option for investors who just want to invest and leave it in the hand of experts to manage. However, it comes with a hefty price tag.

In the emerging markets, transformation and disruption in technology is a boon. On the one hand, there is no shortage of ideas in investing the funds. It can be done using mergers and acquisitions, investing in various product lines, in the new markets and initiate new divisions, etc. On the other hand, understanding the source from where the fund arrives for the investments is the key.

Among the many ways, one way to raise funds is debt and equity, which are most suited to large enterprises, but these are costly, need a lot of time, and depend on the shareholders’ reactions. Other ways include accumulating funds by reducing the workforce or selling unwanted assets. Even minimizing capital investments is a wise idea. However, these things require a significant overhauling process in organizations, which sometimes leads to substantial organizational changes. Therefore these processes of raising funds are considered as the last option by most of the businesses.

The Solution

Supply chain financing has recently emerged as one of the best options for raising funds. When I say supply chain finance, it means that the companies can access funds hidden in their supply chain. The latest trends in the supply chain include shifting from the documentary trade and opening account for supply chain finance. Factoring and supply chain finance will grow in the coming years at a decent rate. Integrated treasury solution meets clients’ needs, and digitization of trade is the growing trend.

With these trends in supply chain financing, there are 3 ways to raise the capital, namely reducing inventory, reducing receivables, and increasing the supplies. Executing one or more of these methods can be done by choosing term negotiations, dynamic discounting, letters of credit (LOC), and factoring.

What is Supply Chain Finance?

“Supply Chain Finance or Reverse Factoring is the way by which the supplier gets the advance money for his supplies with the help of invoices presented by the buyers. These invoices are then provided to the banks or NBFC for the small discount, and then the capital is raised before the buyers’ credit limit matures. In general, the credit limit maturity ranges between 30 and 45 days. This unlocked money can be utilized for various purposes of funding.”

19 Effective Business Ideas in the Finance Sector

Building or maintaining a solid financial ground is never the easiest thing to do, as this requires exceptional skills like the ability to calculate the possible ROI of an investment, understand the dynamics of assets and liabilities over time, amongst many others.

Many individuals desire to have a good understanding of the processes involved in building a solid financial ground. However, this is something only specific set of people, often referred to as finance experts, can handle.

Finance experts command both fortune and respect, with no dearth of employment/business opportunities.

If you are an expert in the finance sector or an upcoming finance graduate, below is a list of effective business ideas you can venture in.

Start an Auditing Firm

Average Annual Pay: $31,625 – $78,685

What they do: It’s important for every firm to review their financial status at least once every year. This financial review, otherwise called auditing, is done best finance experts. Hence, if you are knowledgeable in the finance field and you’re looking forward to starting your own business, setting up an auditing firm is something to be considered. With the ability to network, market and position yourself well, you can land yourself good business deals.

Develop and Sell Accounting and Banking Software

Average Annual Pay: $52k- $175k

What they do: Accounting and banking software are used widely to efficiently manage the finances of an organization. For a software developer who also has an understanding of finances, this is one of the best options. Many accounting software are doing well in the market. If you can come up with something similar or even more user-friendly than these software, you can build a good business off of it.

Retail Finance Related Books/E-books

Average Annual Pay: Widely varies

What they do: If you are a credible writer and writing comes naturally to you, write and publish finance-related books. You can reduce the publishing costs by releasing e-books. Be it books written to help student’s clear top notch exams or finance self-help books that even an average person can learn from — this is a lucrative business idea.

Blog About Finance

Average Annual Pay: $19k – $79k

What they do: Build a blog platform, make it as professional as possible with the use of reliable theme providers like Colorlib. After this, provide in-depth knowledge on finance-related topics. Blogging is the easiest and most widespread format to build an audience, share insights and also learn. After you successfully build a large audience, there becomes numerous ways to monetize your blog — be it affiliate marketing, selling ad spots, sponsorships, and so on. You can also be approached by large firms to consult for their company.

Start Publishing a Finance Magazine

Average Annual Pay: Widely varies

What they do: Finance Magazines can be a great income source if you can pack it up with valuable stuff. There are many finance magazines doing great. Package something unique and stand a chance to get hold of a fair market share.

Online Finance Coaching

Average Annual Pay: $30k – $122k

What they do: If teaching comes to you naturally but you don’t want to be tied down physically, this is a great option for you. Start a coaching centre to prepare students for the various finance related certification exams. With multiple educational sites on the web where you can host your courses, all you need to do is to design and create one.

Start a Mortgage/Debt-Reduction Service

Average Annual Pay: $30,418 – $53,276

What they do: This is one of the few businesses in the finance industry which you can get into with little or no start-up capital. The job is to help individuals/companies renegotiate their debts/mortgages and get them a better deal. The money you make will be based on commissions or perhaps as agreed upon percentage.

Finance Consulting Firm

Average Annual Pay: $24k – $175k

What they do: Ranging from investments to savings and budgeting, finance consultants offer their expertise in these services. It’s a thriving business where you can start consulting for individuals, businesses, or even the government.

Tax Consultant

Average Annual Pay: $39k – $79k

What they do: Every country has its own set of laws governing the payment of tax, and these laws are often administered very strictly. Many big time businesspersons often get sent behind bars while trying to evade the taxes. Starting a tax consultancy firm is a very viable business option to help brands settle their tax-related issues.

Manage Investment Portfolios

Average Annual Pay: $52,163 – $188,912

What they do: Most people fail to realize that managing wealth is more important than creating one. Rich people, however, know the importance of efficient finance management and as a result, they often employ professionals to manage their investment portfolios. If you have the required skill set, help rich people remain rich and, you can get richer yourself.

Build Investment Tools

Average Annual Pay: Varies

What they do: Stock investment tools help businesspersons to analyse their desired investment fields after which it’ll present the investment that is most likely going to yield a good ROI. With a good technical know-how and a core finance expertise, you can build such tools.

Budget Consultant

Average Annual Pay: $41,035 – $82,730

What they do: Preparing a budget for a certain project is often a big deal for many people and organizations. If you are good with fund allocation and can efficiently distribute available fund to effectively cover the required sectors of a project, becoming a budget consultant for firms/individuals is an excellent business option for you.

Risk Management Consultant

Average Annual Pay: $74k

What they do: Many businesses fail because they couldn’t account their business risks well and thus did not have a proper risk-management plan in place. With a good risk management plan, a business can mitigate the risks from the initial stage and this, thus, has created a market demand for risk-management consultants who know their craft.

Credit Repair Business

Average Annual Pay: $33,988 – $70,559

What they do: A credit repair business has low start-up costs and great profit potential. The responsibility involves identifying errors in credit reports and disputing inaccurate information with the appropriate organizations to improve credit ratings. These services are taken up on behalf of clients who are undergoing credit problems.

U.S. open jobs fall sharply for 2nd straight month

WASHINGTON — U.S. businesses sharply cut the number of jobs they advertised in December for the second straight month, an unusual sign of weakness in an otherwise healthy job market.

The number of available positions dropped 5.4% to 6.4 million, a historically solid number, the Labor Department said Tuesday. There are still more open jobs than there are unemployed people, an unusual situation that has persisted for nearly two years. Before that, the ranks of those out of work exceeded the number of open jobs.

Still, the total of available jobs has fallen by more than 1 million in the past year, the biggest annual drop since the Great Recession. Most of that decline has occurred in just the past two months. Job openings are now at their lowest level in two years. The decline comes after job openings had hit the highest level on records dating back to December 2000.

Nearly all other measures of the labor market remain healthy: The unemployment rate is 3.6%, nearly a half-century low, and employers added 225,000 jobs last month, a solid increase.

“The trend in job growth has remained strong through January … but the recent decline in job openings signals that job growth could slow at some point,” said Daniel Silver, an economist at JPMorgan Chase.

Over the past two months, openings have fallen across all large industries covered by Tuesday’s report, known as the Job Openings and Labor Turnover survey, or JOLTS. Some of the biggest declines were in construction, manufacturing, financial services, and retail.

Australian Share Market Today all Ordinaries

Some of you must have a range of indices being published on the bulletin and newspapers to help investors in making decisions. While some still cannot wrap their heads around the strange list of numbers that are being read on TV. Whatever the category of people you belong, it is important to understand what it is, how it works and how vital it is for your investment and management decisions. Thus, Ezzat Daniel Nesseim is here to walk you through what the Australian share market All ordinaries is all about. Read on!

What is The All ordinaries index?

Fondly referred to as All Ords, All Ordinaries is the summary of the measure of the largest 500 companies listed on the Australian stock exchange market. It was developed in 1980 and it is the oldest official share price index in Australia.

It is considered as the standard upon which the overall sharemarket performance and trends are determined. In the economic context, it provides information on market trends and serves as an indicator of how people react to situations and events.

When it was established, All Ords was given a base value index of 500 points. this means if the current index value is at 5000 points, Australian Share Market Today in All Ords has grown tenfold.

The All Ords was restructured to include 500 corporations baes on market capitalization on the 3rd of April, 200o. In March 2019, it accounted for 92% of the value of all the shares on the Australian Stock Exchange (ASX). However, with the introduction of a new benchmark index such as ASX 200, this premiered index has lost significant value.

What is The ASX 200?

Many investors prefer to use different indices because it covers 200 largest companies-, unlike all ordinaries 500. As the name suggests, ASX 200 is a benchmark index that tracks the performance of 200 companies based on floated-adjusted market capitalization. The value used to measure the performance of their shares is 313.3.

ASX 200 was started on March 31, 2000, and it is widely referred to as the leading stock exchange index in Australia.

What about the dividend?

The dividend paid to shareholders is not inclusive in the All Ordinaries index. Hence, it is not a complete reflection of all the total returns made by investors during the period. The All Ordinaries Total Return Index (XAOA), unlike all ordinaries, includes all cash dividend reinvested from the ex-dividend dates. It, therefore, provides a complete reflection of the return made on the investment. However, XAOA is not an index used on a daily basis and it is used as a guide for long term investment.

What are the requirements for All-Ordinaries Index Inclusion?

To be a part of the 500 biggest company on all ordinances index, a company must have a market value of at least 0.2 percent. The average turn over rate on ASX must be at least 0.5 percent which must be maintained every month. The average daily market from 6 months will be considered and it must meet the minimum benchmark index set by ASX

The ranking of the members on the Australian Securities Exchange (ASX) is based on market capitalization. All ordinaries have does not consider liquidity.

The above criteria are for inclusion and do not extend to the continuity of the membership. If a company is removed from being a member, the company has to wait until the next rebalance which is conducted annually in March. To ensure that the companies included do not fall below the requirements, updates of the portfolio are conducted every month.

How is the All Ordinaries index calculated?

As stated earlier, the All Ordinaries weighted index is on market capitalization. To calculate the market cap of a company, the total number of shares issued by a company is multiplied by the current share price. This value will now stand as the parameter of the percentage weight of that company.

Investors and wealth planners prefer to use other indexes such as the All Accumulation index. This is because this includes dividends and there are not many stocks to be considered.

“if you are looking to have a good return on your investment, share market indices will provide a good guide.” says, Ezzat Daniel Nesseim, a successful investor with an-depth knowledge of wealth management of leading Australia’s banks.

Compare the longer-term price movements and get a clearer picture of the trends, the economic situation and how your investments are holding up- Ezzat Daniel Nesseim advises.