Top 10 largest stock exchanges in the world
CachHayNhat - We have all heard of stock exchanges and know, from the way they are discussed in the media, that the biggest exchanges have an impact on the world economy. Do we know what a stock exchange really is? It is a market for buying and selling financial instruments such as shares of a business or bonds issued by the government. Observers look at what's going on in exchanges every day to try and get a picture of how well businesses are doing, especially multinational corporations.
The largest stock exchanges are located in major financial capital cities. However, there are markets that cannot be ignored in emerging countries.
Top 10 largest stock exchanges in the world
Market capitalization: 30 trillion dollars
Market capitalization: 11 trillion dollars
Market capitalization: $5.6 trillion
Market capitalization: $5.5 trillion
Market cap: $4.3 trillion
Market capitalization: $4.65 trillion
Market capitalization: 3.8 trillion USD
Market capitalization: $2.7 trillion
Market capitalization: $2.2 trillion
Market capitalization: $2.2 trillion
1. New York Stock Exchange
Location: New York City, USA
Established: 1792
Market capitalization: 30 trillion dollars
The NYSE is the largest stock exchange in the world when it comes to market capitalization. More than half of Americans invested in publicly traded companies and had 40% of the world capitalization in 2018. It was the largest market in the world over the past century.
Given the number of market shares listed, when something goes wrong with the NYSE, the world suffers. Such events include the market crash of 1929 and the attack on the World Trade Center.
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In 2018, the NYSE elected the first female chairperson in the corporation's history.
2. NASDAQ
Location: New York City, USA
Established: 1971
Market capitalization: 11 trillion dollars
The NASDAQ was created when a group of dealers wanted a way to provide automated stock quotes (an acronym for National Association of Securities Dealers Automated Quotations). An ostensibly automatic quote reduces the difference between the bid price and the price the seller is willing to accept. Finally, NASDAQ not only offers automated quotes, but also has the ability to buy and sell securities electronically, making it the first electronic stock market.
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Due to NASDAQ's policy to allow trading for smaller companies, it has attracted technology companies like Microsoft to join the listing. Those companies grew and helped make NASDAQ the second largest.
3. Tokyo Stock Exchange
Location: Tokyo
Established: 1878
Market capitalization: $5.6 trillion
The Tokyo Stock Exchange, also known as the Nikkei, is the largest stock exchange in Asia. The establishment of the market was part of a movement to bring Western-style economics and finance to the Japanese empire. During World War II, the Tokyo exchange merged with markets in other cities to form an all-Japan market. After the war, as part of the rebuilding work led by the United States, a new Tokyo Stock Exchange arose.
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During Japan's economic boom in the Showa and Heisei eras, the market exploded in value, and in 1990 the Nikkei index held 60% of the world's market capitalization.
4. Shanghai Stock Exchange
Location: Shanghai, China
Established: 1990
Market capitalization: $5.5 trillion
The Shanghai market is the largest in China and the second largest in Asia. Three of the largest markets are located in China reflecting their growing economy, the second largest in the world in 2018. The government of the People's Republic of China exercises significant influence over the SSE as well as the market. Shenzhen market due to the government's monetary policy. Unlike HKE, there is very little foreign investment.
There has been trading in Shanghai since the late 19th century in various forms. The current market, under government control, was established to meet the requirements of economic reform.
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SSE is the only non-profit stock exchange in the top 10 largest in the world.
5. Hong Kong Stock Exchange
Location: Hong Kong
Established: 1891
Market cap: $4.3 trillion
Hong Kong was a major financial center in Asia before the People's Republic of China annexed the city in 1997 (the city is now known as the "Special Administrative Region" of China). The Hong Kong Exchanges and Clearing entity became the parent company of HKE in 2000. The Chinese government's investment in HKE and its participation in the market has been the subject of some controversy.
HKE is one of the oldest stock exchanges in Asia, established during the years of Hong Kong as a British colony.
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As a result, the majority of trading on HKE is done electronically, causing the exchange's floor to close in 2017.
6. Euronext
Location: Amsterdam
Established: 2000
Market capitalization: $4.65 trillion
Given the formation of the European Union trade organization and the adoption of the currency, it makes sense to have a stock exchange that reflects the EU's approach to international trade. Euronext is built on the consolidation of exchanges in several major European cities: Paris, London, Brussels, Amsterdam and Lisbon. The other two exchanges held a controlling financial interest in Euronext until 2014 when it was spun off from the parent company and offered shares to the public.
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While its headquarters are in Amsterdam, Euronext has market buildings in major European financial centres.
7. London Stock Exchange
Location: London, England
Established: 1571
Market capitalization: 3.8 trillion USD
LSE currently has more than 2,600 companies on its list with origins in 60 countries. These numbers combine companies in the main market and those traded in the alternative international market, creating space for smaller companies. Transactions between brokers are carried out on the floor and electronically.
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The first stock exchange in London was the Royal Exchange. Traders are not allowed to go on the floor due to their behavior, which is considered inappropriate for the establishment. They were forced to meet at a nearby cafe.
8. Shenzhen Stock Exchange
Location: Shenzhen, China
Established: 1990
Market capitalization: $2.7 trillion
China is one of the fastest growing economies in the world and has two of the world's largest stock markets. The first is SSE located in Guangdong province. It is the fourth largest exchange in Asia.
The city's population has exploded in the years since the SSE opened. The population increased from 2 to 12 million people. Large international corporations such as Tencent and Huawei have offices in Shenzhen as the city has become a major financial center.
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SSE headquarters, built in 2013, is unique in that the building's foundation is raised more than 100 feet above the ground.
9. Toronto Stock Exchange
Location: Toronto, ON, Canada
Established: 1861
Market capitalization: $2.2 trillion
There were a few informal gatherings of businessmen in Toronto in the mid-19th century for the purpose of trading commodities, bonds, and issuing bank instruments. After a period of economic hardship in Toronto, the group paused the meeting until the market developed stronger.
There have been several other exchanges in Canada over time. However, the TSE is the senior group that trades stocks. A privately held company, the TMX group, has become the parent company of TSE.
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Unlike other exchanges that have an exchange, TSE is a company that conducts all transactions electronically.
10. Bombay Stock Exchange
Location: Mumbai, India
Established: 1875
Market capitalization: $2.2 trillion
In the late 19th century, a group of 20 businesses would gather in Mumbai to buy goods and sell them under the trees in front of the city's town hall. The gathering grew in number over time, eventually becoming the Indigenous Stock & Stock Brokers Association. This is the group that will become the Bombay Stock Exchange.
BSE uses BSENSEX as an index to measure market volatility. There are 30 companies in the ranking.
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BSE is the oldest existing stock exchange in Asia.
Top 10 largest stock exchanges in the world