Major Stock Exchanges in world
Major Stock Exchanges
Stock Exchange is an organized platform that offers trading opportunities for stock traders, brokers and investors. It enables these individuals to transact in shares, stocks and other financial products.
We’re going to give you a run down of the largest stock exchanges you’ll find in American and throughout the world. Some of these exchanges have real trading floors, while others operate as a virtual stock exchange, relying heavily on sophisticated computer networks.
New York Stock Exchange Euronext
The New York Stock Exchange or NYSE was formed in 1792 by 24 New York City stockbrokers. The NYSE is arguably the oldest and most prestigious stock exchange in the world and trades still take place on the exchange floor. On an average day, nearly $45 billion dollars are traded on this exchange and 1.6 billion shares exchange hands. There are currently around 8,500 companies listed on the exchange worth nearly $17 trillion.
To be listed on the New York Stock Exchange, the company must have in excess of 2,200 shareholders with an average daily trading volume of at least 100,000 shares. Generally, the company must have a total capitalization of $750 million or pretax earnings in excess of $10 million. There are several combinations, but the bottom line is that you need to be either very big or very profitable.
NASDAQ
Until recently every company’s goal was to have its stock exchanged on the New York Stock Exchange. That all changed about 10 years ago when NASDAQ became recognized as the most technologically savvy stock exchange in the world. Many of the largest companies in the world – such as Microsoft – now trade on the NASDAQ and for good reason.
Unlike the floor of the NYSE, NASDAQ’s network of computers allow for extremely efficient trading – a virtual stock exchange. In October 2004, the NASDAQ surpassed the average trading volume of the NYSE for the first time with an average volume of 1.6 billion shares.
Like the NYSE, the NASDAQ has a matrix approach to its listing standards. Generally, a company must have issued around 1,000,000 shares of stock valued at $10 million or more.
American Stock Exchange
The third largest stock exchange in the world is the American Stock Exchange or Amex. From the very beginning, the Amex filled a niche roll as it was the original exchange for companies that did not meet the standards of the NYSE. Today, the NASDAQ fills that role and in 1998 the owners of NASDAQ purchased the American Stock Exchange.
The niche role of the American Stock Exchange has evolved and today it specializes in derivatives and options. On a typical day, 50 million shares exchange hands and there are around 1,700 companies listed on the Amex.
In January 2008, NYSE Euronext announced it was acquiring the American Stock Exchange for $260 million in stock. The deal was completed on October 1, 2008 and the exchange was re-branded as the NYSE Amex Equities.
Related posts:
- History of Stock exchanges
- What are stock exchanges all about ?
- History of Indian Stock Exchange
- Difference between NSE and BSE
- Trading in BSE/NSE starts at 9 AM from 4th January
Filed Under: Informative
About the Author:
Hi, I'm Veer Deora and I write Review10 Blog to help you make the transition from an ametuer to a successful investor (the reader's problem or goal).
I started Review10 to help other deal with the sometimes overwhelming prospect of starting a new investment oppurtinities while still doing your regular job.
I've spent over 5 years in investment and risk handling. To contact me, please email veer.equity@gmail.com (you can add me in your gtalk list for instant assistance) 