Have you ever thought about what the world’s major stock exchanges are? Anyone familiar with the financial markets understands the significance of staying informed, particularly regarding the worldwide situation.
This is due to the fact that global events can have an immediate or indirect influence on the market. As a result, the stock exchange and its investors may experience a favorable or negative impact. Furthermore, knowing about other nations allows traders to identify the finest applications while also protecting themselves from market volatility.
How to indentify the stocks exchanges
But what distinguishes the largest stock exchange? Simply put, they gain points based on the foundation time. The total number of participating firms, as well as market capitalization and other factors that are considered.
Other criteria can also be used to determine the exchange’s standing in respect to others. Take a look at the major considerations:
- The stock exchange’s market value;
- Total number of transactions completed throughout the fiscal year;
- Existence’s epoch;
- Transaction volume over the course of the year;
- The number of listed firms.
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1. New York Stock Exchange (NYSE)
Currently, The New York Stock Exchange (NYSE) is the largest stock exchange in the world. So we can realize its importance, the sum of the value of the companies that are traded on the stock exchange exceeds 19 trillion dollars.
The Buttonwood Agreement, which established pricing and equity trading preferences among 24 brokers, was signed in May 1972, and the New York Stock Exchange was born. Moreover, Apple, Amazon.com, Microsoft Corporation, and Facebook are the major firms trading on this exchange.
Nasdaq (National Association of Securities Dealers Automated Quotations), second largest stock exchange in the world, was created in 1971 and is widely regarded as one of the most significant developments in the American capital market. This is due to the fact that many firms from the new economy are present.
It brings together a number of important technology, telecommunications, biotechnology, electronics, and other firms. It is owned by the NASDAQ-listed OMX Group, which also owns eight other Nordic European exchanges.
In its 47-year history, the Nasdaq has amassed a market capitalization of more than 7 trillion dollars. It already has 3,000 firms listed. Apple, Starbucks, Netflix, eBay, and Google are among the most well-known American firms listed on the Nasdaq.
4. Tokyo Stock Exchange (TSE)
TSE, the world’s first daily stock exchange, is regarded as one of the industry’s pioneers, having merged with the Osaka stock exchange in 2012. The Japan Exchange Group arose as a result of this.
In its 140-year history, it has acquired a market worth of $5 trillion. Toyota, Honda, and Mitsubishi are among the more than 2,000 firms on the list.
3. London Stock Exchange (LSE)
In its more than 200-year history, the London Stock Exchange (LSE) has amassed a market capitalization of over 6 trillion dollars. It is the major stock exchange in the United Kingdom, consisting of shares in the top British corporations.
HSBC, Unilever, Royal Dutch Shell, Royal Bank of Scotland, British Energy, and British American Tobacco are among the most prominent businesses listed on the LSE.
The B3 is a Brazilian stock market that was founded in São Paulo in the 1890s. However, in 2009, she had a significant transformation. The trading session on the so-called BM&FBovespa was changed from speakerphone to fully electronic.
As a result, new technologies entered the nation, increasing the amount of transactions on the exchange. Given this, a number of new firms went public. In its 128-year history, the market value has risen to more over 820 billion dollars.
Vale, Petrobras, Itaú, Ambev, Bradesco, and Cielo are among the more than 400 listed businesses.
Important: All the content here is not recommendative, it is just for informational purpose. If necessary, contact investment specialists.
Translated and adapted by Billpay
Source: Finance One