Certain financial markets stand out for their large capitalization and their high volume of transactions. From New York to Frankfurt, via Tokyo, Shanghai and London, discover the world's largest stock markets.
Most countries have one or more stock exchanges. Some of these markets do not weigh very heavily in the international financial system… Others act as giants.
Are you considering investing in major global stock exchanges to diversify your investments and potentially benefit from higher returns? A little historical and factual overview of the most important financial markets on the planet, to consult before you start.
Warning: investing in financial markets, wherever they are located, involves a risk of capital loss.
The major stock exchanges in North America
The New York stock exchange
The New York Stock Exchange, or NYSE (New York Stock Exchange), or Wall Street Stock Exchange, is considered the world's largest stock exchange (1) . It has experienced some dramatic events, including the crash of 1929. This has not prevented it from remaining ultra competitive, both in terms of the volume of capital and the number of transactions.
NASDAQ
The NASDAQ (National Association of Securities Dealers Automated Quotations) is the other major American stock market. NASDAQ is a marketplace particularly geared towards technology. The famous Gafa (2) , the tech and digital giants, are listed there .
Toronto Stock Exchange
Founded in 1852, the Toronto Stock Exchange is Canada's largest stock exchange. About 1,500 companies are listed there. Among them are the Royal Bank of Canada and the Compagnie des Chemins de Fer Nationaux du Canada (3) .
The major stock exchanges in Asia
Tokyo Stock Exchange
The Tokyo Stock Exchange is the largest stock exchange in Japan , and one of the most important financial markets in Asia. Its predominant index is the Nikkei 225 Stock Average. This index is based on the capitalization of 225 major Japanese companies, including Yokohama, Mitsubishi, Fujitsu, Sony and Honda.
Shanghai Stock Exchange
The Shanghai Stock Exchange is a relatively young market (opened in its current form in 1990), on which there are two types of shares. On the one hand, Class 'A' shares are listed in renminbi (the official name of the currency of the People's Republic of China). On the other hand, Class 'B' shares are priced in US dollars. The 'A' securities are mainly reserved for Chinese investors.
Hong Kong Stock Exchange
Third essential stock exchange in Asia: the Hong Kong Stock Exchange. The flagship index in this market is the Hang Seng Index. The securities are primarily traded in Hong Kong dollars (HKD). This exchange brings together companies like Alibaba, HSBC, Bank of China and Lenovo (3) .
The major stock exchanges in Europe
Beyond the Paris Stock Exchange, let's focus on 3 financial centers that serve as a benchmark.
London Stock Exchange
Located in the heart of the City, the London Stock Exchange is one of the oldest financial markets in the world. It was officially launched in 1801, but has origins dating back to 1698. Over 1,000 British and international companies are listed there.
Frankfurt Stock Exchange
The Frankfurt Stock Exchange (Deutsche Börse) is the first German stock exchange. The most widely used index on this financial market is the DAX (Deutscher Aktienindex), made up of the top 30 listed companies (including BMW and Adidas (3) ). The Frankfurt Stock Exchange mainly brings together national companies or companies from other countries whose currency is the euro.
Euronext
Euronext Stock Exchange is a pan-European stock exchange bringing together the Paris, Amsterdam, Dublin, Brussels and Lisbon stock exchanges. Transactions are made in euros. In view of the number of countries represented, several indexes make it possible to follow the evolution of prices. But one index clearly emerges: the Euronext 100 . Companies like Accor, Danone, Peugeot and Sodexo (3) are included.