The best stock markets in the world

A stock market is a market on which investors, whether individuals or professionals, owners of one or more stock market accounts, can buy or sell different securities. Thus, the best stock markets play a central role in the global economy. They help businesses raise capital by issuing shares, bonds to investors for business expansion, working capital requirements, capital expenditure, etc.

Si you are an investor or simply a company that wishes to open its capital to the public, then knowledge of the best stock markets will be of capital importance to you.

Today, Finance de Demain Consulting presents to you, according to their market capitalizations, the best stock markets in the world. Before discussing this subject, let us first understand what a stock market is, more commonly known as Stock Exchange.

What is a Stock Exchange?

the stock market, also known as the stock market, is an organization that allows a person or company to buy and sell securities. Securities can be stocks, bonds issued by a company or a government and different financial instruments in a public place.

Stock exchanges grant membership to designated securities brokers and members who act as intermediaries for the purchase and sale of securities. The exchange ensures compliance with fair trading policies and compliance related to the trading activities themselves. Stock exchanges have different indices that act as a barometer of the health of the economy.

Nowadays, almost all exchanges exist as electronic markets. The market price of the company's underlying shares and different commodities such as oil, gold, copper, etc. depends on the demand and supply situation in the market as buyers and sellers place their respective execution orders.

History of stock markets

The oldest and first stock exchange was established ago over 400 years in Europe, in the Netherlands. Dutch East Indian stocks were used to trade on the stock exchange. The main responsibility of an exchange is to ensure that there is adequate liquidity in the market.

The bigger the exchange, the better it is for all stakeholders. There are around 60 major stock exchanges around the world.

The 10 best stock markets in the world

We have compiled a list of the top 10 stock markets in the world based on market capitalization data provided by the World Federation of Exchanges. Let's go.

1. The New York Stock Exchange (NYSE)

NYSE is the largest stock exchange in the world, located at 11 Wall Street, New York City, United States. NYSE has around 2400 listed companies which include many blue chip companies like Walmart, Berkshire Hathaway Inc, JP Morgan Chase, etc.

It is one of the oldest stock exchanges which was founded in 1792. The market capitalization of all companies listed on NYSE is approximately $22,9 trillion in 2021.

The average daily trading volume is between 2 and 6 billion sharess. NYSE is the only exchange in the United States that offers floor trading to large traders. It offers trading in various financial instruments such as exchange-traded funds (ETFs), stocks, bonds and several other options.

The ownership structure of the NYSE changed in 2006, when it merged with Archipelago Holdings to form the NYSE Group, Inc. In anticipation of this change, the last seats on the exchange were sold in December 2005.

All seat holders became shareholders of the NYSE Group. A merger with Euronext NV, a group of European stock exchanges, created the holding company NYSE Euronext in 2007. In 2008, NYSE Euronext acquired the American Stock Exchange (subsequently renamed NYSE Amex Equities).

The main index of this exchange is the DOW JONES INDUSTRIAL AVERAGE.

2. NASDAQ

NASDAQ stands for National Association of Securities Dealers Automated Quotations. It is the second best stock market in the world. Created in 1971, the NASDAQ is based at 151 W, 42nd Street in New York. It is the world's leading electronic stock market with a total market capitalization of $10,8 trillion.

More than 3 stocks are listed on NASDAQ with an average market value of $000 trillion each month. Big tech companies like Microsoft, Google, Facebook, Tesla, Amazon, Apple, etc. are listed there. NASDAQ-listed companies contribute 1,26% of the total global market value. The NASDAQ index is also called the NASDAQ.

There is an interesting fact about the NASDAQ stock market that you will be surprised to know. It has no listed companies in the oil and gas sector or the utilities sector. She is more inclined towards the technology, healthcare and consumer services sector.

3. The Tokyo Stock Exchange (TSE)

The Tokyo Stock Exchange, also known as Tosho. It is third in the ranking of the best stock markets in the world and is located in Tokyo, Japan. TSE was established in 1878. TSE has more than 3 listed companies with a cumulative market capitalization exceeding $500 trillion.

Nikkei 225, is the benchmark that constitutes 225 Japanese business conglomerates like Honda, Toyota, Suzuki, Sony, Mitsubishi and many more.

You will be amazed to know that TSE suspended its operations completely for 4 years after World War II. TSE allows members to trade derivatives, global stocks, bonds, etc. TSE account more than 1 employees and is best known for ensuring trade compliance and market surveillance.

However, some market participants have complained that over the years. According to them, the TSE has become too big and complicated compared to other global exchanges. The TSE consists of five sections.

The first section lists the largest companies in Japan and the second section lists medium-sized companies. Together, these two sections are called the “ main markets ».

4. The Shanghai Stock Exchange (SSE)

The Shanghai Stock Exchange is one of the best stock markets in the world and the largest in Asia. It is located in Shanghai, China and ranks fourth based on market capitalization.

This stock exchange was founded in 1866 but was postponed in 1949 due to the Chinese revolution and its modern foundation was laid in 1990.

In 2006, it listed the shares of 842 companies, representing a stock market capitalization of around 915 billion US dollars.

The Shanghai Stock Exchange had soared by 130% in 2006 and then by 97% in 2007, the dynamism of the economy of China then attracting millions of new investors to the market. In October 2007, the ESS Composite (main market index) peaked at 6 points.

It suffered particularly from the financial crisis of 2008, losing more than 65,5% of its value, ending the year 2008 at 1 points, representing a loss of 820 billion dollars in market capitalization. Today, SSE has over 81 public companies listed on its platform with a combined market capitalization of approximately $3 trillion.

However, this stock market is a bit different from its aforementioned counterparts. Here, market regulators impose circuit breakers to curb price volatility. Whenever there is unfavorable news or uncertainties, the Chinese government reserves the right to stop trading for the day.

5. Euronext: best stock markets in the euro zone

Located in Amsterdam, the Euronext stock exchange is considered one of the best stock markets in Europe.

It ranks fifth in our ranking with over 1 companies listed on its platform with a total market capitalization of over $300 trillion. Its reference indices are'AEX-INDEX, le PSI-20 and CAC 40. The average monthly total volume is around $174 billion.

Euronext operates regulated and transparent cash and derivatives markets. Its offering covers products such as equities, ETFs (exchange traded funds), warrants and certificates, bonds, equity derivatives, commodity derivatives and indices.

This exchange operates the regulated market of Paris, Amsterdam, Brussels, Lisbon, Oslo, Dublin and Milan. It operates markets dedicated to SMEs and ETIs such as Euronext Growth and Euronext Access. Euronext also offers services to third parties.

6. The Hong Kong Stock Exchange (HKSE)

The Hong Kong Stock Exchange, founded in 1891, is ranked sixth in the list of the best stock markets in the world. The HKSE benchmark index is the Hang Seng index. There are a total of 1200 debt securities and more than 2300 companies listed on the HKSE, of which about 50% are from mainland China.

The total market capitalization of all listed HKSE stocks is over $4 trillion. HKSE generates a trading volume of more than one million derivative contracts per day with HSCEI futures.

In 2017, HKSE moved from physical trading process to e-commerce. Many large conglomerates like HSBC Holdings, AIA, Tencent Holdings, China Mobile, etc. are listed on HKSE.

7. The London Stock Exchange (LSE)

The London Stock Exchange, which is one of the oldest stock exchanges in the world, is owned and administered by the London Stock Exchange Group. LSE, which was established in 1698, ranks seventh in the list of the world's largest and best stock markets.

It was the largest stock exchange in the world until the outbreak of the First World War. The NYSE later turned it around to become the world's largest stock exchange after the end of World War I.

However, the LSE rejected two acquisition offers launched by the NASDAQ between 2006 and 2007. In 2007, it acquired the Italian Stock Exchange based in Milan for 1,5 billion euros to create the London Stock Exchange Group (LSEG ). Today, there are around 3 companies listed on the LSE with a combined market capitalization of more than $000 trillion.

Many leading UK companies like Barclays, British Petroleum, Vodafone, GlaxoSmithKline, BlackRock, Qatar Holding among others are listed on the LSE. The main index of this market is the FTSE 250.

8. La Shenzhen Stock Exchange

The Shenzhen Stock Exchange is located in Shenzhen, known as the Silicon Valley of China. Shenzhen is the second largest stock exchange in China after the Shanghai Stock Exchange which was established on December 1, 1990.

Shenzhen is the eighth largest and one of the best stock exchanges in the world. It has over 1400 companies listed on its platform with a total market capitalization value of around $3,92 trillion.

Most of the companies listed on this exchange are based in China and all trading actions are in Yuan currency. As most listed companies are based in China, the Chinese government has full power to halt trading for the day in the event of any adverse news or event affecting the shares. China has two sets of stocks available for investors and traders

• A-shares which are traded in local currency, the Yuan
• et B Shares which are traded in US dollars for foreign investors

The main index of this market is the SZSE Component.

9. The Toronto Stock Exchange (TSE)

The Toronto Stock Exchange is owned and operated by TMX Group. TSE was founded in 1852 and is located in Toronto, Canada. TSE has approximately 2 listed companies with a total market capitalization of $200 trillion.

Several financial instruments such as real estate investment trusts, stocks, bonds, commodities, ETFs, etc. are traded on the Toronto Stock Exchange with an average monthly trading volume of $97 billion.

This exchange recently made headlines for merging with the London Stock Exchange, but the deal fell through as shareholders rejected the proposal. The main index of this market is the S&P/TSX.

10. Bombay Stock Exchange (BSE)

Bombay Stock Exchange, the oldest stock exchange, established in 1875 in Asia. It occupies the tenth place in the ranking of the best stock markets in the world. BSE located at Dalal Street, India has more than 5 companies listed on its platform. The total market cap of BSE is over $500 trillion.

The BSE is home to the S&P BSE SENSEX benchmark index, acronym for sensitive index. Sensex is made up of 30 stocks representing different sectors of the economy. Many blue chip companies such as Reliance Industries, Tata Consultancy Services, Infosys, HDFC Bank, ICICI Bank, Tata Steel are part of the BSE SENSEX Index.

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