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Different types of Stock Exchanges in the world and in India

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In this article,I am going to tell you the biggest and largest stock exchanges in the world by the total market capitalization of all listed companies.

Before I start, let us briefly talk about what the stock exchange is.

What is Stock Exchange

Stock Exchange market is an important component of a stock market. It is a place where all the buyers, sellers and stockbrokers can trade through shares.

  • It helps to run the transaction between traders of financial instruments and targeted buyers. The largest stock exchanges have thousands of listed companies. 
  • The Frankfurt Stock Exchange is the largest stock exchange in the world which was founded in the late 16th century. And currently the largest stock exchange in the world is the New York Stock Exchange.
  • A stock exchange in India,attached to a set of rules and regulations which is directed by the Securities and Exchange Board of India or SEBI. 
  • It’s aim is to protect the interest of investors and to promote the stock market of India. 

Stocks that are not listed on a reputed stock exchange can still be traded in an ‘Over The Counter Market’. But such shares would not be held high valuable in the stock exchange market.

Top Largest Stock Exchanges in the world 

Here are these biggest and largest stock exchanges in the world 

  1. New York Stock Exchange (NYSE), Market Capitalization – $28.36T 

            United States of America 

  • Rank 1st on the list of largest stock exchanges in the world and also highly admired stock exchange in the USA .
  • Situated at 11,Wall Street ,New York City.
  • Established on 17th May, 1792.
  • It has 2400 listed companies namely – JPMorgan Chase, ExxonMobil, American Express, IBM, McDonald’s, Walmart, and Nike.
  • The average trade volume ranges from 2 to 6 billion shares.
  • It  offers exchange-traded funds (ETF’s), trading of equities, fixed income, and several other options. 
  1. National Association of Securities Dealers Automated Quotations (NASDAQ) 

Market Capitalization ‐ $22.33T 

United States of America 

  • Rank 2nd on the list of largest stock exchanges in the world and also world first electronically traded stock market. 
  • Headquartered at 151 W,42nd Street ,New York City.
  • Started its business on 8th February, 1971.
  • It has more than 3,000 stocks listed companies namely- Apple, Microsoft, Google, Facebook, Amazon, Tesla, and Intel

NASDAQ shows about  9% of the total market value of the world. Because it is an industry leader in the USA, it allows you to buy and sell shares and equities, futures. It allows you an opportunity for the most unprecedented organizations.

Also this stock exchange has never been listed with any oil and gas company, or utility companies, and it is more inclined towards the healthcare sector and consumer services.

  1. Shanghai Stock Exchange (SSE),

Market Capitalization – $7.6T

            China

  • Rank 3rd on the list of largest stock exchanges in the world and also the largest stock exchanges in Asia.
  • Located in the city of Shanghai, China
  • Laid down in 1990 after the Chinese Revolution in 1949.
  • More than 1450 listed companies, 1507 listed stocks and 12,888 listed securities.
  • It provides two types of share exchanges namely  ‘A’ shares and ‘B’ shares.
  • Allows all users to trade equities, bonds, index funds, and options.

‘A’ shares for local exchange currency and ‘B’ shares for US dollars foreign investors. 

It is built out by commercial banks and state-owning insurance companies.

  1. European New Exchange Technology (EURONEXT), 

Market Capitalization – $6.45T

Europe

  • Rank 4th on the list of largest stock exchanges in the world and the best stock exchange in the Europe 
  • headquarter in Amsterdam, Netherlands.
  • Company Address at La Défense in Greater Paris.
  • Established in 2000 by the merger of stock exchanges in Amsterdam, Paris, and Brussels.
  • It has almost 1500 listed companies namely – Aegon, Peugeot, Michelin, Phillips, Alstom, L’Oreal, ArcelorMittal, BNP Paribas, Royal Dutch Shell, Unilever, Schneider Electric, etc.

It navigates financial markets in Amsterdam, London, Brussels, Lisbon, Oslo, Dublin, and Paris.

EURONEXT allows the segments which are equities, warrants, exchange-traded, bonds, commodities, funds and certificates, derivatives, indices, and foreign exchange trading platforms.

Euronext is a multi-state stock exchange

  1. Japan Stock Exchange (JPX) 

Market Capitalization – $6.93T

Japan

  • Rank 5th on the list of largest stock exchanges in the world  
  • Formed by the merger of two companies on 1st January, 2013
  • It has listed 3500 companies namely Toyota, Suzuki, Honda, Mitsubishi, and Sony.
  • It is a Japanese financial services corporation with multiple securities exchanges like Tokyo Stock Exchange and Osaka Securities Exchange. 
  1. Shenzhen Stock Exchange (SZSE), Market Capitalization – $5.7T

China

  • Rank 6th on the list of  largest stock exchanges in the world and a self-regulatory legal entity, which is closely supervised by the China Securities Regulatory Commission (CSRC).
  • Established in 1990, 1st December. 
  • It has listed almost 1900 companies.
  • It has a trading platform for share ‘A’ for local trade and share ‘B’ for trading US dollars and for foreign investors.

The stock market of Shenzhen introduced the “ChiNext Board” in 2009 consisting of high tech & high growth startups.

  1. Honk Kong Stock Exchange (SEHK) Market Capitalization – $6.8T

China

  • Rank 7th on the list of largest stock exchanges in the world.
  • Located in Hong Kong
  • Origin in mid 1800s.
  • It has 2,538 listed companies namely China Mobile, and HSBC Holdings & Petro China.
  • This has converted its physical trading process into electronic trading, 3 years back in 2017.

It allows you to trade equities, Exchange-traded funds (ETF), fixed income, and derivatives trading.

It has gone through many significant mergers, such as those with the Hong Kong Futures Exchange Ltd and Hong Kong Securities Clearing Company Ltd.

  1. London Stock Exchange(LSEGroup), UK and Italy  Market Capitalization – $3.71T
  • Rank 8th on the list of largest stock exchanges in the world and the oldest stock exchange in the world. 
  • Established in 1801
  • It has further than 3000 listed companies namely – Barclays, British Petroleum, and GlaxoSmithKline.

You might be glad to know that LSE was the world’s largest stock exchange until the circumstances of World War I.

The LSE set up the first standard price, market, and equity-market liquidity data in Europe.

The LSE’s secondary market instruments include bonds, derivations, ETFs, debt securities, exchange-traded goods(ETCs), global depository receipts (GDRs), gilt-edged securities, among others.

The LSE amalgamated with Borsa Italiana S.P.A, the Italian stock exchange, in June 2007, with the amalgamation entity called the London Stock Exchange Group (LSEG).

LSE is also the maiden source of standard prices, equity-market liquidity, and market data in Europe.

  1. National Stock Exchange (NSE): 
  • Established in 1992 in Mumbai 
  • It is authorised as the pioneer among the demutualised electronic stock exchange markets in India. 

This stock exchange market was established with the aim to exclude the monopolistic impact of the Bombay Stock exchange in the Indian stock market.

The estimated market capitalization of the National Stock Exchange as of March 2016 was US$ 4.1 trillion and was acclaimed as the 12th largest stock exchange in the world. 

NIFTY 50 is NSE’s indicator, and it is extensively used by investors across the globe to gauge the performance of the Indian capital market.

Top Stock Exchanges in India

There are two main stock exchanges in India namely the –

  1. Bombay Stock Exchange (BSE): 
  • Established in 1875 in Mumbai at Dalal Street. 
  • It is famed as the oldest stock exchange not just in Asia and is the ‘World’s 10th largest Stock Exchange’.
  • The estimated market capitalization of Bombay Stock Exchange is  $ 4.9 Trillion 
  • It has upto 6000 listed companies publicly.

Its performance is measured by the Sensex, and it reached its all-time high in June in 2019, when it touched 40312.07.

  1. National Stock Exchange which I describe earlier 

Here is a list of stock exchanges in India 

The Bombay Stock Exchange Ltd

  • India International Exchange or India INX
  • Metropolitan Stock Exchange of India Ltd (was valid up to September 15th, 2019)
  • National Stock Exchange of India Ltd.
  • NSE IFSC Ltd.

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