The Amsterdam Stock Exchange is thought to be the world’s oldest stock exchange, dating back to around 1602.
Today, there are around 60 major stock exchanges operating around the world, with millions of people trading in over 50,000 publicly listed companies every day. Most of which are headquartered in the USA, Europe or Asia.
Indeed, while America has the largest and possibly most well-known exchange in the world, many of the most prominent ones are now in the Far East. This means that investors can choose to speculate their money in several different stock markets across the globe, many of which offer lucrative potential.
However, for those new to investing in equities as a way to grow your wealth, you may not be aware of all the places you can do this. So, in this post, to point you in the right direction, we’ll outline 7of the top stock markets in the world.
Before you start trading, though, just remember while many people have made a significant amount of money trading through these platforms, there is no guarantee you will. So, only invest what you are prepared to lose.
1. The New York Stock Exchange
The New York Stock Exchange (NYSE) is probably the most famous stock exchange in the world. It was established around 1792 and is now part of the Intercontinental Exchange, a body that has several clearing houses and exchanges around the world.
As mentioned, The NYSE is by far the largest of all stock exchanges, boasting a market capitalisation of a mind-blowing $25 trillion and around 3000 employees.
The first stock ever traded on the NYSE is believed to have been that of the Bank of New York (now part of Bank of New York Mellon). Today, the exchange competes for the listings of exchange-traded funds (ETFs), futures, structured products, cash equities, options, and other derivatives.
Famously, trading is commenced and proceeded every day with the ringing of the iconic NYSE bell.
2. The London Stock Exchange
For many years, the London Stock Exchange (LSE) was the big fish in the global stock market pond. However, it has gradually dropped in size to the point where it is currently ranked as the world’s ninth-largest exchange.
Originally launched around 1801, it has a market cap of over $3 trillion. However, the number of companies listed on the LSE has steadily declined over the years, especially since 2010 and there are now only around 1900 actively trading on the exchange.
There are several reasons associated with this, including Brexit, a lack of liquidity, pension managers switching from stocks to government debt, more private equity funding, and an adverse regulatory environment.
3. The Hong Kong Stock Exchange
The Hong Kong Stock Exchange was launched in 1914 and is now one of the top ten in the world.
Between them, the 2500 companies listed on the HKSE have a total market cap of just under $4 trillion.
Many overseas investors are attracted to this exchange because it offers a good avenue to invest in Chinese businesses.
4. Australian Stock Market (ASX)
The Australian Stock Exchange Limited (ASX) was only formed in 1987. However, it has quickly become one of the world’s foremost financial market exchanges.
Based in Sydney, it provides investors with access to over 2150 companies and accounts for around 80% of the country’s equity market.
You can check out the Westpac share price to get an idea of how it has performed over the last few years.
5. The Tokyo Stock Exchange
The Tokyo Stock Exchange (TSE) has been around since 1878 and now forms a part of the Japan Exchange Group (JPX). A body that also includes the Tokyo Commodity Exchange and the Osaka Securities Exchange.
It is now the world’s fifth-largest exchange, with just under 4000 firms trading on it and a market capitalisation of over $6 trillion. It accommodates the Nikkei 225 index, which is one of the most popular and leading indexes in the world, and represents major Japanese firms like Mitsubishi Corporation, Fujitsu, Panasonic, and Nomura Holdings.
6. The National Stock Exchange of India
Surprisingly, the National Stock Exchange of India has only been around since 1992. However, it quickly gained traction, becoming the nation’s first exchange to offer screen or electronic trading just two years later.
Today, the NSE boasts a market cap of $4.3 trillion and more than 2,350 listed companies. It is arguably more popular now than the BSE (Bombay Stock Exchange), the country’s other major stock market.
7. The Shanghai Stock Exchange
The Shanghai Stock Exchange (SSE) is one of three stock exchanges that operate independently of each other in mainland China, with the Shenzhen and Beijing Stock Exchanges being the other.
While around 2,850 companies are listed on it, trading in this exchange can be complicated as it is not wholly open to foreign investors. This is because it is often mandated by the rulings of the central government and controls on capital accounts exercised by the authorities on the mainland.
Notwithstanding, it is currently the biggest stock exchange in Asia and the third largest in the world by market capitalisation, which currently stands at $7 Trillion.
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