Stock exchange is a place where anyone can invest their money to buy shares from a particular company.
Around the globe, there are more than 100 international exchanges that trade approximately 30,000 shares, and the most important in the world are in North America, Asia and Europe.
Although the concept of the stock market had already originally appeared in Brussels in the 16th century, the first stock exchange was officially founded in 1602 in Amsterdam, with the aim of raising funds for future businesses in the country.
The European countries near the metropolis did not take long to realize the success of the Amsterdam Stock Exchange and decided to do the same to support the businesses and economy of their country. An example of this is the London Stock Exchange and the Paris Stock Exchange.
What Is A Stock Exchange?
The North American financial markets are the most profitable to invest since they are the most liquid markets in the world. Among them, the United States stock markets stand out, which have a large index of world-renowned companies such as Apple, Walt Disney, Coca-Cola, Pepsi, etc.
1. New York Stock Exchange (NYSE)
Stock exchange founded in New York in 1792, with headquarters at 68 Wall Street. It was born after the signing of the Buttonwood Agreement, agreed by 24 stockbrokers and merchants in the region.
Today it is the largest stock exchange in the world and in the United States, with a market capitalization of over $ 21.3 billion.
The indices that compose it are : S&P 500 Index, Dow Jones Industrials 30 Stock , Nyse Composite Index New and Nzse Us 100 Fund.
It was founded in 1971. Its headquarters are also in New York, a city in which it is also the most important stock exchange.
At present, it is an American exchange characterized by housing more than 5,000 companies in the technology, computer, telecommunications, etc. It has the highest number of exchanges per hour on world exchanges and its market capitalization exceeds $ 9.6 trillion.
The stock market is based on two of its most representative indices, the famous Nasdaq100 (made up of the 100 most important companies in the technology sector), and the Nasdaq Composite Index , which includes all Nasdaq companies, both digital and financial, insurance , telecommunications, etc.
To be part of this exchange, companies must (among other requirements) report a minimum movement of 200,000 daily shares for three consecutive months. Some of them are American Airlines Group Inc, Apple Inc, Adobe Systems Inc, Amazon.com Inc, Intel Cop. among other.
3. Toronto Stock Market (TSX)
Founded in 1986, its headquarters are in the Change Tower in Toronto’s Financial District. TSX is in the twelfth place of the largest exchanges in the world and with the largest market capitalization: 5.9 trillion Canadian dollars.
In addition to stocks, the stock market deals with mutual funds, exchange-traded funds, and trusts. In comparison with the rest of the world stock exchanges, TSX stands out for being the stock exchange in which a greater number of mining, oil and gas companies are listed.
A large number of Canadian and foreign companies such as Suncor Energy, Royal Bank of Canada, Potash Corporation of Saskatchewan or Canadian National Railway are represented in this environment.
4.London Stock Exchange (LSE)
Undoubtedly one of the oldest exchanges in the world, since it was founded in 1571 (under the name of “The royal Exchange”) by Queen Elizabeth I of England. Later, in 1698, what is known today as the “London Stock Exchange” was officially born.
Currently, this exchange is made up of more than 3,000 British and international companies, among which are: Burberry Group, Petra Diamonds, Ferrexpo, Findel Plc, Acacia Mining, etc; reaching a capitalization of more than $ 4.5 trillion. Its index par excellence is the famous FTSE 100.
The LSE is understood and labelled as a very international exchange since around 350 foreign companies from 50 different countries participate in it. In addition, trade is carried out with Asia and Africa.
It is made up of a primary market and a secondary market for trading stocks, bonds (including retail bonds), derivatives, exchange-traded funds, debt securities, listed commodities, and warrants, among others.