“The stock market is often likened to a battlefield, and for good reason. Both environments are fraught with uncertainty, risk, and the potential for both loss and gain.”
―Billy Polk,Soldier to Stockholder: Mastering the Stock Market with Military Precision
Profit and loss are part and parcel of any business. You never know when the market will go up or down. Anyone interested in getting a stake in any business ought to know that their investment is fraught with risk. To have some kind of control over this, we have stock exchanges. A stock exchange is a market where buyers and sellers trade in various financial instruments like stock, shares, bonds, and equity, among other things. As it is monitored by an official regulatory body, investing in a company listed on a reputed stock exchange is a safe bet.
In today’s world, trading has become a trend. It seems that every other person is in one way or another involved in stocks. Nowadays, trading is not only limited to wealthy businesspeople but also ordinary men with modest means. Naturally, we now have a large number of stock exchanges all around the world. This may confuse people who are new to the trading game.
To abate some of this confusion, I am here with a list of the 10 most reputed and biggest stock exchanges worldwide today.
New York Stock Exchange (NSYE)
Location: The United States of America
The New Stock Exchange is the largest stock exchange in the world. Located in New York’s Wall Street, NSE, with its iconic trading floor full of screaming traders, epitomizes the financial pulse of America. It was established on May 17, 1792, making it one of the oldest stock exchanges in the world. Naturally, The Big Board is not only a modern financial hub but also a historic symbol. Some of the famous companies listed on the NYSE are Coca-Cola, Walt Disney Company, Berkshire Hathaway Inc., and McDonald’s Corporation.
National Association of Securities Dealers Automated Quotations (NASDAQ)
Location: The United States of America
Way back on February 8, 1971, the NASDAQ emerged as the world’s first electronically traded stock market. Located in New York City, the NASDAQ is fast-paced and market trend-oriented. Its focus on innovation and technology has led it to become the second largest stock exchange in the world today. Apple, Facebook, Google, Microsoft, Tesla, Amazon, and Intel are only some of the many tech giants listed on the NASDAQ.
Shanghai Stock Exchange (SSE)
Location: China
China is the second largest economy in the world. Being one of the only two stock exchanges operational in the People’s Republic of China, it offers traders a large scope for investment. Big Chinese companies like Alibaba, China Mobile, and Tencent are listed on the SSE.
European New Exchange Technology (EURONEXT)
Location: France
The EURONEXT Stock Exchange is a leading stock exchange in Europe. Established in the year 2000, it primarily operates in Belgium, France, Ireland, the Netherlands, Portugal, and the United Kingdom. The European New Exchange Technology boasts of various companies from myriad sectors, offering its investors to diversify their portfolios and manage risk.
Japan Stock Exchange (JPX)
Location: Japan
The Tokyo Stock Exchange and the Osaka Securities Exchange merged in 2013 to form the Japan Stock Exchange. Today, it is one of the largest securities markets in Asia. The prestigious Japan Stock Exchange is home to blue-chip companies like Sony, Suzuki, Toyota, Honda, and Mitsubishi.
Shenzhen Stock Exchange (SZSE)
Location: China
The Shenzhen Stock Exchange was founded in 1990. Located in the Futian District of Shenzhen City, it is one of the two stock exchanges operating independently in China. Today, it is not only one of the largest stock exchanges in Asia but also the world.
Hong Kong Stock Exchange (SEHK)
Location: Hong Kong
Located in Hong Kong’s Central District, the Hong Kong Stock Exchange is Asia’s fastest growing stock market. Today, with its innovative technology, diverse companies, and strict regulatory body, it has gained a spot in the top ten largest stock exchanges in the world in terms of market capitalization. HSBC Holdings & Petro China and China Mobile are some of the big names registered with the SEHK.
National Stock Exchange (NSE)
Location: India
Established in 1992, the National Stock Exchange was the first dematerialized electronic exchange in India. The government-owned NSE is located in Mumbai and is one of the largest stock exchanges in the world. Reliance, LIC, and Nestle India Ltd., among many others, are some of the big names listed on the National Stock Exchange.
London Stock Exchange (LSE)
Location: The United Kingdom
The London Stock Exchange is one of the oldest stock exchanges in the world. Headquartered in Paternoster Square in London, it has over 2,000 listed companies and is one of the top ten stock exchanges in the world. British Petroleum, Barclays, and GlaxoSmithKline are some of the big names listed on the LSE.
Saudi Stock Exchange
Location: Saudi Arabia
Saudi Arabia is a thriving economy. Established in the year 2007, the Saudi Stock Exchange is the only authorized stock exchange in Saudi Arabia. Today, it has bagged the position of the tenth largest stock exchange in the world in terms of market capital. Riyadh Bank, Saudi Telecom, Saudi Aramco, and Al-Rajhi Bank are some of the giant companies listed on the Saudi Stock Exchange.
Conclusion
If you think trading in financial instruments is a modern phenomenon, think again. Stock exchanges have a long history. Way back in the 1300s, Venetian lenders provided debt issues to interested lenders and investors. They even kept a record of it. In the 14th century, Sans the Stock was set up in Antwerp, modern-day Belgium. Here, merchants from all over the world gathered and bought goods in the hopes of selling them later for a profit. Another hundred years passed by. The Dutch East India Company started offering stocks for their sea voyages. It became the first publicly traded company on the first modern stock exchange which was established in Amsterdam. Then came the 1700s. The United States of America joined the game. The US Stock Exchange, NASDAQ, and the New York Stock Exchange came into existence. Thus, began the long and illustrious tale of stock exchanges.
Today, there are multiple stock exchanges around the world. I sincerely hope this list helps you to choose the right one to invest your hard-earned money in.
Published by Kajori Sheryl Paul
Reading is my passion, and writing is my compulsion. I started reading from a very early age. Since then, I have not stopped. I have garnered this addiction from my father. I have always loved reading his books. As you can see, books are my world. I escape this world to traverse the world of my books. Naturally, I have an affinity to create worlds of my own. There are thoughts constantly swirling in my head. These are the thoughts that I jot down. Sometimes, they become poems while sometimes stories. More often than not, they are just reviews of the plethora of books I read and the things I do.View all posts by Kajori Sheryl Paul
