Shares in Value Logo
Product Review Img Vertical

Date : 28/11/2023

Industry Changes That Could Impact Small Cap Stocks

Top view of a paper clips,pen and memo notes written with New Regulations on green square background.

The Australian share market is a constantly changing landscape, as new rules and regulations are regularly introduced. This means that investors must always stay on top of the latest developments in order to ensure they are making the best decisions for their investments.

Small-cap stocks are particularly sensitive to industry changes due to their size and tendency to be more volatile than larger companies.

Changes in the Australian Share Market

The Australian Securities and Investments Commission (ASIC) is continuously introducing new laws and regulations that dictate how businesses can operate. These regulations aim to protect both investors and the market as a whole.

Recent changes include the introduction of the Corporate Governance Principles and Recommendations, which ensure that companies are complying with Australian standards on corporate governance. It also includes the ASIC Regulatory Guide 227 which prohibits company officers from engaging in excessive trading of shares or derivatives.

Additionally, the ASX has also been scrutinising the operations of certain listed companies and has stopped trading for several stocks until they meet certain requirements. These restrictions, while beneficial from a risk management perspective, can have a significant impact on the performance of certain small-cap stocks.

Impact of Recent Regulatory Changes on Small Cap Stocks

Small-cap stocks face a much higher risk of being affected by any changes in the industry. Given the fact that these stocks tend to be more volatile and lack the resources to navigate the compliance process, they can be greatly impacted by any new regulations or restrictions. Therefore, it is important for small-cap investors to be aware of the latest changes in industry regulations, and to exercise caution when investing in these stocks.

Shares in Value provides comprehensive insights into the ASX market and offers a range of stock research tools to help investors make informed decisions. Our comprehensive analysis of small-cap stocks gives investors an insight into what stocks are performing well, and which ones may be worth avoiding due to the industry changes.

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.