Part 2/8:
One of the defining features of the Australian stock market is its extreme concentration. Statistically speaking, the three largest companies account for 20% of the overall market. This concentration amplifies when considering the six largest companies, which together make up a daunting one-third of the market share. Even more revealing is the fact that the top 14 companies represent half of the market. These 14 entities are predominantly comprised of four major banks, a couple of miners, a telecommunications company, and a handful of retailers.