Top 5 Stock Market in the World – Indian Stock Market overtakes UK

Stock-Market in the World

The stock market (also called the share market) refers to public markets for issuing, buying, and selling stocks (also known as equities) that trade on a stock exchange or over the counter.
A share represents the capital of the company when it is part of a company.
There are two primary purposes for the stock market.
First, provide capital to companies so that they can use this fund to expand their business.
The second goal of the stock market is to provide investors with an opportunity to share the profits of listed companies.
In this article, we take a look at the Top 5 Stock-Market in the World. Keep reading to find out!

The first stock market was set up in Amsterdam in 1602 to ensure that the public was able to exchange shares in the Dutch East India Company. However, now there are countless stock-market worldwide, and their trading hours vary with local culture and geographical conditions.

Today, the American economy is the greatest in the world. Whenever we get negative news from the American markets. It could have a significant impact on world markets, particularly in the short term.
Although the developed world dominates the top places, the developing world is catching up, with China and South Asia on the list. However, when we talk about the top 5 stock-market in the world, one of the biggest factors to look at is its market capitalization. 

What is Market Capitalization?

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Market Capitalization (also known as Market Cap), is a term used to represent the market value of a company based on its current share price and the total number of its outstanding shares.

Market Capitalization = (Total no of outstanding share) * (Price of one share)

Market capitalization can be calculated by multiplying the number of outstanding shares of a company by the current price of its shares.

Let me give you an example for clarification. If a company issues one million shares at INR 100 each, its market capitalization is INR 100 million (1 million shares multiplied by INR 100).

Top 5 Stock-Market in the World

Here is the list of the top 5 stock-market in the world based on the market capitalization:

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01. New York Stock Exchange (NYSE), United States of America

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The NYSE is the world’s largest U.S. equity market. It was established in 1792 and has a market capitalization of $26.64 trillion with 3,000 publicly traded companies.
The movement of the NYSE invariably affects trading at other exchanges on the next trading day. The NYSE lists 2400 companies, with most household names being listed there, such as

Companies
Exxon Mobil Corp.
Citigroup, Inc.
Pfizer, Inc.
General Electric Co.
American Int’l Group, Inc.
Wal-Mart Stores.
International Business Machines (IBM).
Bank of America Corp. (BAC)
Johnson & Johnson (JNJ)
Goldman Sachs Group (GS)

The NYSE’s benchmark index is the Dow Jones Industrial Average (DJIA), a 30-stock price-weighted index of 30 prominent stocks. Even with its excessive influence, DJIA has been criticized because it does not represent an adequate cross-section of NYSE companies.
Other well-considered indexes include the S&P 500 and the NYSE Composite Index.

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02- National Association of Securities Dealers Automated Quotations (NASDAQ), United States of America

The NASDAQ started in 1791. With a list of 3,000 companies and a market capitalization of $23.46 trillion, it has become the second largest stock exchange in the world. NASDAQ had also become more popular with companies looking to raise capital.

The Nasdaq Composite Index is a market capitalization-weighted index, which represents the value of all its listed equities. All eligible securities include common shares and common equivalents like ADRs. However, convertible debentures, warrants, Nasdaq-listed fixed-capital funds, exchange-traded funds (ETFs), preferred shares, and other derivative securities are excluded.
the top stocks in the Nasdaq Composite account for about 40% of the index’s performance. 

Companies
Apple
Microsoft
Amazon
Meta
Alphabet
Tesla
NVIDIA

The Nasdaq Composite Index is the MCAP-weighted NASDAQ benchmark, which includes most equities that are exclusively listed on the stock market. To be listed in the Nasdaq Composite Index, the share must be a common share, not a preferred or exchange-traded fund.
Another notable index is the Nasdaq 100, which only includes the 100 largest non-financial companies listed on the NASDAQ. These 100 companies make up over 90% of the Nasdaq Composite.

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03. Shanghai Stock Exchange (SSE), China

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Although the third biggest in the world, SSE is the leading stock market in China. The company was established in 1990 with a market capitalization of $7.63 trillion.
This is an independent trade with the People’s Republic of China. The control of capital accounts by the Chinese government makes it not entirely open to foreign investors.

Companies
Kweichow Moutai 
Industrial and Commercial Bank of China
Agricultural Bank of China
China Life
Ping An Insurance
China Merchants Bank
PetroChina
Bank of China
Haitian Flavouring & Food
Hengrui Medicine 

The SSE trades stocks, bonds, derivatives, and funds. Two types of shares are available on the stock exchange: the “A” shares in local renminbi yuan and the “B” shares in US dollars.
In December 2002, carefully selected investors were allowed to invest in ‘A’ and ‘B’ stocks, with a quota of $80 billion in 2012.

04. European New Exchange Technology (EURONEXT), pan-Europe

EURONEXT is an operational stock exchange in Europe. It has a market capitalization value of $7.33 trillion and lists various types of securities, in particular debt and funds.
It lists more debt and money than any other stock exchange around the world.

Companies
Aegon N.V.
Peugeot
Michelin
LVMH Moët Hennessy Louis Vuitton SE
Alstom
BNP Paribas
L’Oreal
Unilever

French businesses represent nearly 65% of this index. It has many key indices, such as the blue-chip Euronext 100, which includes the 100 most liquid and important stocks on the Exchange.
The remaining stock exchange indexes include national indexes such as AEX (Dutch companies), BEL 20 (Belgium), FTSE MIB (Italy) and OBX 25 (Norway).

05. Japan Exchange Group (JPX)

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Located in the Japanese capital, the Tokyo Stock Exchange (TSE) is the largest stock exchange in Asia and the 5th largest stock exchange in the world, by aggregate market capitalization of its listed companies. 

Since 2013, the Tokyo Stock Exchange has participated in the Japan Exchange Group Inc (JPX), a company formed by the merger of TSE and the Osaka Stock Exchange.JPX operates several stock markets and the Japan Securities Clearing Corporation.

Today, more than 3,500 companies are listed on the Tokyo Stock Exchange, bringing the TSE’s market capitalization to $6.79 trillion as of August 2021.

Companies
Nippon Suisan Kaisha,Ltd.
Kirin Holdings Company,Limited
Inpex corporation
Oji Holdings Corporation
Sekisui Chemical Co. Ltd.
Yamaha Motor Co. Ltd.

India Becomes 7th Stock Market in the World

You would be surprised to know that the rank of the Indian stock market in the world is currently at the 7th position, overtaking the UK for the first time in terms of market cap, with the Sensex benchmark soaring by more than 23% this year.
India’s market capitalization reached $3.96 trillion in August 2022, according to Wikipedia data.

FAQs

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What are the two biggest stock markets?

The two biggest U.S. financial securities markets are the NYSE and Nasdaq.

What is the largest stock market in the world by volume?

The New York Stock Exchange, established in 1817, is the world’s largest stock exchange by trade volume.

Which is the biggest stock exchange in Asia?

Shanghai Stock Exchange, China

Which is Asia’s first stock exchange?

Bombay Stock Exchange (i.e. BSE) is an Indian stock exchange located in Mumbai. Established in 1875, BSE (formerly known as Bombay Stock Exchange Ltd.) is India’s and even Asia’s oldest stock exchange.

Which is the biggest stock exchange in India?

NSE is the largest stock exchange in India whereas BSE is the oldest exchange.

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Reference – https://www.wikipedia.org/

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