By Michael J Defosse - December 01, 2017
Opportunities for global investing can be discovered on many trading platforms. There are 60 major stock exchanges throughout the world and their range of size is quite surprising.
At the high end of the spectrum is the widely recognized New York Stock Exchange (NYSE), representing $18.5 trillion in market capitalization, or about 27% of the total market for global equities.
At the lower end? Stock exchanges on the tiny islands of Malta, Cyprus and Bermuda all range from just $1 billion to $4 billion in value. Even added together, these three exchanges make up just 0.01% of total market capitalization but regardless of size, they offer global investment choices.
There are 16 exchanges that are a part of the “$1 Trillion Dollar Club” with more than $1 trillion in market capitalization. This elite group, with familiar names such as the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE), Deutsche Borse, TMX Group and the Japan Exchange Group, comprise 87% of the world’s total value of equities.
Added together, the 44 names outside of this aforementioned groups combine for just $9 trillion, or 13%, of the world’s total market capitalization.
From a geographical perspective, it is the Northern Hemisphere that is dominant. North America and Europe both hold 40.6% and 19.5% respectively of the world’s markets, and the vast majority of Asia’s 33.3% lies north of the equator in places like Shenzhen, Hong Kong, Tokyo and Shanghai.
If you are looking for the best stock exchanges to trade on, you have a wide variety of choice for strong investment opportunities. So whether you search Wall Street or Main Street, investing internationally has many benefits.
Lastly, it is important to remember that the best performing stock exchange in 2016, which was the Caracas Stock Exchange with a gain of 114%, may not be the best in 2017. Knowledge is power and the GlobEx Markets founding principle is Knowledge, Access and Opportunity.
Data based upon the World Federation of Exchanges monthly report from November 2015.