Stock markets are an important constituent of the world economy. They are the most sought-after platform where millions of investors trade and invest on a daily basis. Stock exchanges are the heart and sole of the stock market.
Stock markets are bodies which facilitate the transaction in securities and other financial assets. A company must be listed on the exchange to allow public investors and traders to buy and sell its securities. Stock exchanges can be considered to be the lifeline of the stock market.
Stock markets are bodies which facilitate the transaction in securities and other financial assets. A company must be listed on the exchange to allow public investors and traders to buy and sell its securities. Stock exchanges can be considered to be the lifeline of the stock market.
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Largest Stock Exchanges in the World
1. New York Stock Exchange (NYSE)
The New York Stock Exchange is the largest stock exchange in the world with a market capitalization of over $ 24.49 trillion. The exchange was established in 1792 and has around 2400 companies listed. The exchange has taken over and merged with various companies which has resulted in such a huge capitalization. Some of the renowned companies listed on NYSE include Berkshire Hathaway, Walt Disney, Coca Cola etc.
2. NASDAQ
NASDAQ is another prominent name in the world of stock exchanges. NASDAQ is also from United States and is an abbreviation of National Association of Securities Dealers Automated Quotations. NASDAQ is also headquartered in New York city and is often accredited with the first exchange which gave rise to electronic trading. The market capitalization of NASDAQ is around $19.34 trillion.
3. Shanghai Stock Exchange (SZE)
The Shanghai Stock Exchange is the largest Asian Stock exchange. Based in Shanghai, China, it was established in the year 1866 and was adjourned in 1949. It is the third largest stock exchange in the world with a combined market capitalization of $6.5 trillion. The contemporary outlook of the Shanghai stock exchange was laid down in the year 1990.
4. Hong Kong Stock Exchange
The Hong Kong Stock Exchange has over 2500 listed companies with a combined market capitalization of $ 6.48 trillion. As the name suggests, the stock exchange is based in Hong Kong and was established in 1800s. The exchange has gone through various agglomerations and mergers. Some of the leading companies listed on the exchange include HSBC holdings, China Mobile, Petro China etc.
5. Japan Stock Exchange (JPX)
The JPX of Japan Stock Exchange is an organization which operates multiple exchanges including the Osaka Securities Exchange and the Tokyo Stock Exchange. It was established as a merger of two companies in the year 2013. It has around 3500 listed companies with a syndicated market cap of over $ 6.35 trillion. It has various renowned companies listed on it including Honda, Suzuki, Mitsubishi, Toyota, Sony etc.
6. Shenzen Stock Exchange (SZSE)
Another stock exchange from China, the Shenzen Stock Exchange based in Shenzen, SZSE has a market capitalization of $ 4.9 trillion and over 2300 listed companies. It is the second stock exchange operating in Mainland China along with Shanghai Stock Exchange. The exchange includes many companies which are controlled by the Chinese government.
7. EURONEXT
The European New Exchange Technology also known as EURONEXT is headquartered in La Defense in Paris. The exchange was established in 2000 as a consolidation of exchanges from Amsterdam, Brussels and Paris. The exchange has over 1500 listed companies and has a market capitalization of $ 4.88 trillion.
8. London Stock Exchange
A very prominent name in the world economy, the London Stock Exchange or the LSE is the oldest stock exchange in the world, which was established in 1801. IT has a market capitalization of over $ 3.65 trillion with around 3000 listed companies. Some of the prominent players listed on the London Stock Exchange include GlaxoSmithKline, Barclays and British Petroleum.
9. National Stock Exchange
National Stock Exchange popularly known as NSE is the largest stock exchange in India. The NSE is a government-owned entity and based out in Mumbai, India. It is accredited with the beginning of dematerialization of securities in India and was established in 1992. The NSE has over 1900 listed companies with a market capitalization of $ 2.7 trillion. NSE’s index – Nifty 50 is often used by investors worldwide as a barometer of the Indian financial markets.
Conclusion
Stock exchanges play a very important role in the economy of a country. They provide a platform to investors and traders for trading and investing in securities and other financial assets like commodities, bonds, derivatives etc. However, before investing in the market it is important to understand the working of the market. An investment advisor can help you in sailing through the ups and downs of market by providing research-based investment recommendations.
Happy Investing!
