Stock exchanges as we know them have been around for more than 400 years. The first stock exchange was established in Amsterdam in 1602 to trade shares of the Dutch East India Company. Today there are as many as 16 stock exchanges with a market capitalization of over $1 trillion. The so-called ‘$1 trillion club’ exchanges account for more than 80% of the global market capitalization. Here we take a look at the top 10 largest stock exchanges in the world.
These are the top 10 largest stock exchanges
A stock exchange is a regulated marketplace that connects buyers and sellers of various financial securities such as stocks, bonds, and warrants. This list of top 10 largest stock exchanges is based on the market capitalization data from the World Federation of Exchanges as of November 2018.
10- Bombay Stock Exchange, India
Founded in 1875, the Bombay Stock Exchange was the first stock exchange in Asia. As of November 2018, it had a market capitalization of $2.05 trillion. It is the stock exchange with the highest number of listed companies on this list. According to Visual Capitalist, the BSE has 5,749 listed companies. However, most of them are small-caps. It is located at Dalal Street in Mumbai.
9- Toronto Stock Exchange, Canada
Owned and operated by TMX Group, the Toronto Stock Exchange (TSX) has 2,207 listed companies with a combined market capitalization of $2.1 trillion, earning it a place among the world’s top 10 largest stock exchanges. It has an average monthly trade volume of $97 billion. All of Canada’s ‘Big Five’ commercial banks are listed at the Toronto Stock Exchange. It was founded in 1852. Back in 2011, the TMX Group was in talks to merge with the London Stock Exchange, but it couldn’t get the approval of shareholders.
8- Shenzhen Stock Exchange, China
Formally established in 1990, the Shenzhen Stock Exchange is one of the only two independently operating stock exchanges in China. The other one being the Shanghai Stock Exchange. Its market capitalization is $2.5 trillion as of November 2018. Most of the companies listed here are based in China and it trades shares in Yuan. The Shenzhen Stock Exchange launched a ChiNext board in 2009 consisting of high-growth, high-tech startups similar to NASDAQ.
7- London Stock Exchange, United Kingdom
The London Stock Exchange was founded in 1698. It has more than 3,000 listed companies with a combined market capitalization of $3.76 trillion. It is owned and operated by the London Stock Exchange Group, which was formed in 2007 following the merger of the LSE with Borsa Italia. The LSE was the world’s largest stock exchange until the end of the First World War, when it lost that title to the New York Stock Exchange. Some of the biggest companies listed at the LSE are British Petroleum, Barclays, and GlaxoSmithKline.
6- Euronext, Eurozone
Headquartered in Amsterdam, the Netherlands, Euronext is a pan-European stock exchange with a presence in France, Belgium, Ireland, and Portugal. It has approximately 1,300 listed companies with a combined market capitalization of $3.92 trillion. Stocks listed at Euronext trade in euros. Its monthly trading volume is about $174 billion.
5- Hong Kong Stock Exchange, Hong Kong
The Hong Kong Stock Exchange was founded in 1891. It has close to 2,000 listed companies, about half of which are from mainland China. It has a monthly trading volume of $182 billion and a market capitalization of $3.93 trillion. In 2017, the exchange closed its physical trading floor to shift to electronic trading. Some of the biggest companies listed at the Hong Kong Stock Exchange are AIA, Tencent Holdings, PetroChina, China Mobile, and HSBC Holdings.
4- Shanghai Stock Exchange, China
The largest stock exchange in China has a market capitalization of $4.02 trillion. It is a non-profit organization and has more than 1,000 listed companies. Though its origins date back to 1866, it was suspended following the Chinese Revolution in 1949. The Shanghai Exchange in its modern avatar was founded in 1990. Stocks listed at the Shanghai Stock Exchange have ‘A’ shares that trade in local currency and ‘B’ shares that are priced in the US dollar for foreign investors.
3- Tokyo Stock Exchange, Japan
Founded in 1878, the Tokyo Stock Exchange is among the top 10 largest stock exchanges in the world. It has close to 2,300 listed companies with a combined market capitalization of $5.67 trillion. Trading at the Tokyo Stock Exchange was suspended for four years after World War II. It resumed operations in 1949. The TSE’s benchmark index is Nikkei 225, which consists of the largest companies including Toyota, Honda, Suzuki, and Sony.
2- NASDAQ, United States
The NASDAQ Stock Market was founded in 1971 in New York City. NASDAQ is considered the Mecca of technology companies because many of the world’s largest technology companies such as Apple, Microsoft, Facebook, Amazon, Alphabet, Tesla, Cisco, and others are listed here. As of November 2018, NASDAQ had a market capitalization of $10.8 trillion with an average monthly trading volume of $1.26 trillion.
1- New York Stock Exchange, United States
Founded in 1792, the New York Stock Exchange has been the world’s largest stock exchange since the end of World War I, when it overtook the London Stock Exchange. It has a market capitalization of $22.9 trillion and about 2,400 listed companies. According to the 2017 data from Gallup, more than 54% Americans had invested in stocks listed at the NYSE. The NYSE alone accounts for roughly 40% of the world’s stock market capitalization.