Stock Exchanges are markets where financial instruments are traded publicly. Stocks from companies that have gone public are traded on a daily basis in respect to market demand and supply of the orders. A stock of a company can be traded in one or more exchanges respectively.
Financial instruments traded include equities, debt instruments, commodities, derivatives. The exchanges brings together investors, corporations and even the government, where as their demand and supply set precedence for the price of a stock.
The World Stock Exchanges have given access to capital for companies who seek expansion, diversifying ownership and growth. For venture capitalists firms an IPO on a stock exchange can be an exit strategy, to cash out and make profits. Stock Exchanges have also ushered in new millionaires whether an investor, analyst or a mere trader. Collectively, stock exchanges make up what we have come to know as “The Stock Market”.
So here is the list of the world’s largest stock exchanges by market cap;
- New York Stock Exchange (NYSE)
President: Stacey Cunningham
Year of Origin: 1792
It is regarded as one of the world’s largest stock exchange, which uses both physical brokers and electronic to execute a security trade. Financial Instruments and products traded include equities, options, exchange traded products, market data, bonds and technology solutions. NYSE is also home to 5000 Fixed Income Indices, approximately 400 proprietary Equity Indices, Commodity Indices (including Energy, Livestock, Soft, Grains, Oil Seeds, Base & Precious Metals), 44 spot currency indices, the famous ICE US Dollar Currency index and so many more.
Market Cap: $28.52 trillion (as at 30th June 2018)
2. NASDAQ (National Association of Securities Dealers Automated Quotations) Exchange
President/CEO: Adena Friedman
Year of Origin: 1971
Market Cap: approximately over $12 trillion
It is credited for being the first exchange where as investors buy and sell financial instruments on a computerized system that is accountable and transparent with no need of a physical trading floor. Just like NYSE, NASDAQ also allows trading equities, equities derivatives, Exchange Traded Funds (ETFs), Fixed Income, commodities and structured products, market data services etc.
3. Tokyo Exchange Group (TSE)
President/CEO: Atsushi Saito
Year of Origin: 1878, however 1949 started operating officially as Tokyo Stock Exchange
Market Cap: over $5 trillion
TSE operates five markets under the First Section, Second Section, Mothers, JASDAQ and TOKYO PRO Market, whereas;
- First and Second Section – Here stocks of large and second tier Japanese and foreign companies
- Mothers – Stocks of companies demonstrating high growth potential, trade in this section, with hopes of graduating to the first section
- JASDAQ – Offers a market for stocks of companies which demonstrate high innovation acumen, reliability, unique business models, future growth potential and internationalization
- TOKYO PRO Market – This has created opportunities for professional investors. These investors include specified investors and certain non residents
In 2012, Tokyo Stock Exchange merged with Osaka Securities Exchange to form the Japanese Exchange Group (JPX) which now houses Tokyo Stock Exchange, Osaka Exchange, Tokyo Commodity Exchange, Japan Exchange Regulation and Japan Securities Clearing Corporation.
Products available under Tokyo Stock Exchange include Domestic Stocks, Foreign Stocks, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), Real Estate Investment Trusts (REITs), Venture Funds, Country Funds, Infrastructure Funds, Preferred Stocks, Japanese Government Bonds, Convertible Bonds, Subscription Warranty Securities, Preferred Equity Investment Securities, TOKYO PRO Market and TOKYO PRO-BOUND Market.
4. Shanghai Stock Exchange (SSE)
President/CEO: Zhang Yujun
Year of Origin: 1990
Market Cap: Over $4.8 trillion
Located in the city of Shanghai, products available on the SSE include Equities, Bonds, Derivatives and Green Securities.
President/CEO: Stéphane Boujnah
Year of Origin: 2000, after a merger of Amsterdam, Paris and Brussels Exchange.
Market Cap: About €4.5 trillion, with 1,450+ listed companies
Euronext has earned its dues as a leading pan-European exchange that has amassed a wide global presence and local presence. It has grown to become a go-to avenue for debts products, funds and European Tech SMEs. The listed products on Euronext include 1,259 equities, 40,442 Bonds, 1,150 ETFs and 77,369 structured products.
6. London Stock Exchange (LSE)
President/CEO: David Schwimmer
Year of Origin: 1571, making it the Oldest Exchanges in the world.
Market Cap: Over $4.5 trillion
London Stock Exchange is part of the London Stock Exchange Group, which was formed when the former merged with Milan Stock Exchange in 2007 to form the latter.
LSE provides liquidity and market place for investors who trade Equities, Debt and Exchange Traded Products (ETPs). It is home to companies from Israel, United Kingdom, Europe, Russia, Central Asia, Middle East, Africa, Asia Pacific, China and North & South America.
7. Hongkong Stock Exchange
Year of Origin: 1891
Market Cap: Over $3.5 trillion
Located in Central Hongkong, products under Hongkong Stock Exchange include Equities, Exchange Traded Products (ETPs), Structured Products, Real Estate Investment Trusts (REITs), Debt Securities, and Derivatives.
8. Shenzhen Stock Exchange
President/CEO: wang Jianjun
Year of Origin: 1990
Market Cap: About $3.5 trillion
This exchange is home to financial instruments and products including equities, bonds, funds, market data and asset-backed securities. Situated in Futian, district of Shenzhen, it is one of the two stock exchanges that operates independently in Mainland China, the other been the Shanghai Stock Exchange.
9. Toronto Stock Exchange
President/CEO: Lou Eccleston
Year of Origin: 1861
Market Cap: Over $3 trillion
Located on EY Tower, Toronto Financial District in Ontario, Canada, it is a subsidiary of the TMX Group is also home to Montréal Exchange, TSX Venture Exchange, TSX Alpha Exchange and Shorcan.
10. Bombay Stock Exchange (BSE) India Limited
President/CEO: Ahishkumar Chauhan
Year of Origin: 1875
Market Cap: Over $2 trillion
Located at Dalal Street in Mumbai, BSE allows the trading of Equities, Derivatives, Exchange Traded Funds (ETFs), Debt, Currency and Commodity Derivatives.