Top 12 Largest Stock Exchanges of the World in 2021

Today, we have chosen a very interesting topic, about which I’m sure many will be curious about. All of you must have heard the name ‘Stock Exchange’. In this article, I will be discussing the largest stock exchanges in the world. But, first, I will be briefly defining the stock exchange and its history.

Q. What is a Stock Exchange?

A stock Exchange is kind of a marketplace for purchasing and selling shares, bonds and securities. It can also play a role in measuring the strength of the national and world economy. Because the growth of the financial market is parallel to good standards of living and employment rates. The history of Stock Exchanges can be traced back to the early 1600s, about 400 years ago. The first stock exchange was set up in Amsterdam. Their basic purpose was to trade shares of the Dutch East India Company.

In the contemporary world, there are a number of stock exchanges. Some are huge stock exchanges while others are small. Therefore, today I am going to quote a list of the top 12 largest stock exchanges in the world. I have ranked the stock exchanges on the basis of market capitalization.

Biggest Stock Exchanges in the world.

Here’s the list:

12. Frankfurt Stock Exchange:

The Frankfurt Stock Exchange (FWB) is one of the oldest stock exchange in the world. It was initiated in 1585 to fix currency rates. After some years, it was regarded as a stock exchange. It is one of the first Stock Exchange along with London Stock Exchange and Amsterdam Stock Exchange. In the aftermath of WWII, the Frankfurt Stock Exchange was officially established as Germany’s leading stock exchange. In 1993, ownership of the Frankfurt Stock Exchange was transferred to the company Deutsche Bӧrse AG. The market capitalization of FWB is $1.99 trillion.

11. National Stock Exchange:

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India. It is located in Mumbai. The NSE was founded in 1994 as the first materialised electronic exchange in the country. NSE was the first stock exchange in the country to provide a modern, fully automated screen-based electronic trading system which provides easy trading facility to the investors. NSE has a market capitalization of $2.1 trillion.

10. Bombay Stock Exchange:

The Bombay Stock Exchange was established in 1875 during the British Raj. This was the first Stock Exchange from the largest continent, Asia. Contemporarily, the Bombay Stock Exchange has the largest number of listed companies. According to a survey by Visual Capitalist, the stock exchange has 5,749 listed companies. But most of them are small level. It is located in Dalal street, Mumbai. The BSE has a market capitalization of $2.19 trillion.

9. Toronto Stock Exchange:

The Toronto Stock Exchange (TSX) is one of the most famous stock exchanges in the world. TSX is owned and run by TMX Group. This Stock Exchange was established in 1852. Recently, they remained indulged in negotiations with London Stock Exchange for merging TSX with them. But, it didn’t succeed. The Toronto Stock Exchange has 2,207 registered companies. And a market capitalization of $3.256 trillion. 

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8. Shenzhen Stock Exchange:

The city of Shenzhen is also known as the silicon valley of China. Because of its financial and technological growth as a developed metropolis. Therefore, having a large stock exchange will not be a mere surprise. The Shenzhen Stock Exchange was founded in 1990 after Deng Xiaoping declared it as a special economic zone. There are more than 2,000 listed companies. And most of them are based in China. The Stock Exchange trades it shares in China’s own currency Yuan. Shenzhen Stock Exchange has a market capitalization of $3.51 trillion.

7. Hong Kong Stock Exchange:

The Hong Kong Stock Exchange was established in 1891. This Stock Exchange has 2,315 listed companies. Almost 50% of these companies are based in Mainland China. It has transformed itself in a electronic trading stock exchange from physical trading. There are some famous companies registered at Hong Kong Stock Exchange. Like, AIA, PetroChina and HSBC Holdings etc. The Hong Kong Stock Exchange has a market capitalization of $3.9 trillion.

6. London Stock Exchange:

The London Stock Exchange (LSE) is considered as the one of the three cosmopolitan centers of the world. The other two are New York stock exchange and Tokyo stock exchange.The London Stock Exchange was established in 1698. London Stock Exchange Group is operating this stock exchange. The latter has more than 3,000 listed companies. It was the world’s largest stock exchange till world War I. There are some very renowned companies registered in LSE. Like, Barclays, GSK, and British Petroleum. Today, the London Stock Exchange has a market capitalization of $4.59 trillion.

5. Euronext Stock Exchange:

Euronext is a multi-state Stock Exchange. It is originated from the first stock exchange of the world, Amsterdam Stock Exchange. Due to which, Eurozone’s headquarter is still located in Amsterdam, the Netherlands. It is also known as the European Stock exchange and it is the best stock exchange of Europe. Currently, Euronext is operating in  France, Belgium, Ireland, and Portugal.The Stock Exchange has more than 1,300 listed companies.  Euronext has a market capitalization of $4.65 trillion.

4. Shanghai Stock Exchange:

Shanghai Stock Exchange is the largest stock exchange of Asia. It is also the biggest stock exchange of China. This Stock Exchange was founded in 1866, but its modern foundations were laid in 1990. Because it was revoked after 1949, when PRC was formed. It has over 1,100 listed companies. They have to types of shares. The ‘A’ shares trade in Yuan while the ‘B’ shares trade in US dollars. Shanghai Stock has a market capitalization of $5.01 trillion.

3. Tokyo Stock Exchange:

It is also considered as cosmopolitan center of the world. Tokyo Stock Exchange was originated in 1878. Although trading was averted for four years after the WWII. But still it occupied a place in Top 3 Stock Exchanges of the world. The Stock Exchange has more than 2,400 registered companies. Some of the world’s most famous and largest companies of the world. For example, Toyota, Honda, Sony etc. The market capitalization of Shanghai Stock Exchange is $6.19 trillion.

2. NASDAQ Stock Market:

The NASDAQ Stock Market was established in 1971 in New York City. In just five decades, it has become the second largest stock exchange in the world. NASDAQ is regarded as the center for technology companies due to the presence of world’s biggest technology companies like Apple, Microsoft, Facebook etc. NASDAQ stock exchange has a market capitalization of $10 trillion.

1. New York Stock Exchange:

New York Stock Exchange is the largest stock exchange in the world. This stock exchange was the first in the continent of North America. It was originated back in 1792, after the American revolution. New York stock Exchange has retained the number 1 spot since the end of World war I. It snatched the first position from London Stock Exchange. The NYSE alone accounts for roughly 40% of the world’s stock market capitalization. And it has a market capitalization of $16 trillion.

Conclusion:

The above-mentioned list includes the twelve largest stock exchanges of the world. First two are the USA’s stock exchanges. And they are currently dominating the market due to their attachments with some of the largest companies in the world. These rankings are based on the updated surveys.