Stock Exchanges Around the World

Approximately 55,214 companies are now traded publicly throughout the world as of December 2023 (latest data), a 1.9% decrease year-over-year.

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.

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 $25.56 trillion as of December 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 $6.15 trillion as of December 2023. Around 3,930 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 September 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 and steadily. As of Q2 2023, 1,908 companies are trading on the exchange, down from 3,305 in Q4 2007. 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 National Stock Exchange of India

The National Stock Exchange of India (NSE) has a market cap of $4.3 trillion as of December 2023 and 2,370 listed companies. It surpassed the Hong Kong Stock Exchange in size for the first time in 2023. The NSE was founded in 1992 and was the first exchange in India to offer electronic or screen trading, in 1994. India's other important stock market is the BSE, formerly the Bombay Stock Exchange.

5. 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 $3.97 trillion in total market capitalization as of December 2023. Over 2,500 companies are listed on the exchange as of January 25, 2024. Most importantly, the exchange represents one of the primary avenues for global investors to invest in China.

6. The Shanghai Stock Exchange

The Shanghai Stock Exchange is one of the newest in the world. It opened in late 1990, and 2,853 companies are listed on it as of December 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.

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.