Approximately 58,200 companies are now traded publicly throughout the world as of Q1 2022 (latest data), a 2.5% increase year-over-year. The growth of global stock markets outside of the United States and Europe is a key reason that the number of public firms continues to grow.
The U.S. still has the largest exchange in the world, but many of the largest exchanges now reside in Asia, which continues to grow in influence on the world stage. Below is an overview of some of the largest exchanges in the world.
Key Takeaways
- There are approximately 58,200 listed companies worldwide as of Q1 2022.
- Though the Americas and Europe have large numbers of listed companies, significant growth comes from Asia.
- The largest stock exchange in the world is the New York Stock Exchange.
- Other large stock exchanges include the Nasdaq, the Hong Kong Stock Exchange, the Singapore Stock Exchange, and the Shanghai Stock Exchange.
1. The New York Stock Exchange
The New York Stock Exchange (NYSE) is part of the Intercontinental Exchange, which has exchanges and clearing houses worldwide. The NYSE is the largest stock exchange in the world with a market capitalization of $25.24 trillion as of Sept. 2023.
The NYSE has been around since 1792 and it is believed that Bank of New York, which is now part of Bank of New York Mellon, was the first stock traded. The ringing of the NYSE bell at the start and end of the day is a common occurrence in today’s media.
The business has grown incredibly competitive. The exchange competes for the listings of cash equities, exchange-traded funds (ETFs), structured products, futures, options, and other derivatives.
2. The Tokyo Stock Exchange
The Tokyo Stock Exchange (TSE) is now part of the Japan Exchange Group (JPX), which combined the Tokyo Stock Exchange, the Osaka Securities Exchange, and the Tokyo Commodity Exchange. JPX is the fifth-largest exchange in the world with a market cap of $5.75 trillion as of Sept. 2023. Around 3,900 firms were listed on the TSE at the end of 2023.
The TSE was estimated to have first opened in 1878. The Nikkei 225 index is one of the primary and most popular indexes that represent some of the largest and most successful firms in Japan.
3. The London Stock Exchange
The London Stock Exchange (LSE) has dropped in size, with the LSE Group now the ninth-largest exchange in the world with a market cap of $3.42 trillion as of Sept. 2023. Its estimated founding was 1801, or nearly a decade following the opening of the NYSE.
The number of companies trading on the LSE has been dropping significantly. As of July 2023, 1,900 companies are trading on the exchange, down from 2,429 in Jan. 2015. There are a whole host of factors for this occurrence, such as pension managers moving from stocks to government debt, Brexit, increased private equity funding, the lack of liquidity, and the adverse regulatory environment.
4. The Hong Kong Stock Exchange
The Hong Kong Stock Exchange is one of the top 10 largest stock exchanges. The firms that are listed on the Hong Kong Stock Exchange represent $4.1 trillion in total market capitalization as of Sept. 2023. Over 2,500 companies are listed on the exchange as of Jan. 25, 2024. Most importantly, the exchange represents one of the primary avenues for global investors to invest in China.
In Jan. 2024, the total market cap of India’s stock exchanges surpassed the market cap of the Hong Kong Stock Exchange for the first time, making India’s equities market the fourth-largest in the world.
5. The Shanghai Stock Exchange
The Shanghai Stock Exchange is one of the newest in the world. It opened in late 1990, and 2,263 companies are listed on it as of 2023. A major restriction is that A-shares of Chinese companies are only available to citizens living in China; however, H-shares of Chinese companies are listed on the Hong Kong Exchange and are open to global investors.
What Is the Largest Stock Exchange in the World?
The largest stock exchange in the world by market cap of listed companies is the New York Stock Exchange. The second-largest is the Nasdaq. Both are based in New York City.
How Many Stock Exchanges Are There in the World?
As of 2023, there are approximately 80 major stock exchanges in the world. These exchanges are spread across the globe, including North America, South America, Africa, Europe, the Middle East, South Asia, South-East Asia, and Australia.
Which Is the Oldest Stock Exchange in the World?
The Amsterdam Stock Exchange is thought to be the oldest in the world, dating back to 1602. The first public company ever was the Dutch East India Company.
The Bottom Line
Almost every region in the world has stock exchanges where companies can list their shares in order to raise capital for a variety of purposes, such as fueling growth and servicing operations. Investors in turn can purchase the shares of these companies with the hopes of making a profit on the appreciation of share prices.