The Stock Exchange is a central hub where people buy and sell these pieces, called shares. These shares let companies raise money, and investors potentially grow their wealth. Here’s the cool part: They are like the engines that keep many economies running smoothly.
Did you know that over 30,000 companies around the world, raising trillions of dollars for their growth? That’s a lot of money changing hands, fueling innovation, and creating jobs!
Let’s look at how this innovative system of investment started to support the world economy.
10. Bombay Stock Exchange
Established in 1875 by a cotton merchant named Premchand Roychand, it’s not just the oldest in Asia, but the tenth oldest globally! It is located on Mumbai’s Dalal Street, famously called as the India’s Wall Street. It is a massive marketplace with over 6,000 companies listed on the BSE.
Besides equities (regular stocks), you can trade in mutual funds. The BSE plays a key role in India’s financial system. Companies can raise capital by selling shares. And the investors can buy and sell them to potentially make a profit.
9. Toronto Stock Exchange (TSX):
The TSX is the top stock exchange in Canada and ranks 9th (as of January 2024) in terms of market capitalization globally. Opened in 1861, it’s fully electronic, meaning all buying and selling happen digitally.
Over 1,800 companies are listed on the TSX, including Exchange Traded Funds (ETFs), which are like baskets of investments. The TSX is a subsidiary of TMX Group, a large Canadian financial services company.
8. Madrid Stock Exchange (Bolsa de Madrid)
The Madrid Stock Exchange started in 1831. With over 190 years of history, it’s the biggest and most international of Spain’s four stock exchanges. The others reside in Barcelona, Valencia, and Bilbao. It is owned by Bolsas y Mercados Españoles (BME), which translates to Spanish Stock Exchanges and Markets.
Its membership is exclusive, with only 41 major financial institutions and 12 established securities dealers getting a seat at the table. As of 2001, the exchange has over 1477 domestic and foreign companies listed, showcasing its global reach. While this data might be a bit dated, it provides a sense of the scale.
7. Frankfurt Stock Exchange (Börse Frankfurt)
The Frankfurt Stock Exchange, also known as Börse Frankfurt was established back in the 16th century. It’s the largest of Germany’s seven exchanges, handling over 90% of the country’s exchange turnover.
It operates two trading venues: Xetra, a fully electronic and leading global platform, and the traditional floor-based Frankfurt Stock Exchange. The exchange is owned and operated by Deutsche Börse AG, a major German financial services group. While predominantly German-focused, it boasts international reach with listings from various companies.
6. Milan Stock Exchange (Borsa Italiana)
The Milan Stock Exchange, also known as Borsa Italiana, was founded in 1808. It’s the premier exchange in Italy, handling the vast majority of the country’s stock market activity.
Borsa Italiana is a fully electronic exchange.
Since 2007, Borsa Italiana has been part of Euronext, a leading European exchange group. This brings it closer integration with other major European markets. Borsa Italiana is a leader in promoting sustainable finance, providing a platform for green and social bond issuance.
5. London Stock Exchange
The London Stock Exchange (LSE) was established in 1801. It’s the primary exchange in the United Kingdom and the largest in Europe, handling a massive volume of trades.
The LSE operates several markets, with the Main Market being its premier venue for listing large, established companies from around the world. It also offers the Alternative Investment Market (AIM) for smaller, growing companies.
It is part of the London Stock Exchange Group (LSEG), a major financial services group formed in 2007 through the merger of the LSE and Borsa Italiana (Milan Stock Exchange). Over 1,300 companies from more than 60 countries are listed on its Main Market, reflecting its global reach.
4. New York Stock Exchange
The New York Stock Exchange (NYSE) started in 1792. It is located in the heart of New York City’s Financial District, the NYSE’s trading floor.
Over 2,400 companies are listed on the NYSE, including 82% of the S&P 500 (a stock market index of top 500 U.S. companies). Since 2013, the NYSE has been owned by Intercontinental Exchange (ICE), a major American holding company.
3. Philadelphia Stock Exchange
The Philadelphia Stock Exchange (PHLX) was founded in 1790. While initially focusing on stock trading, today the PHLX primarily deals in options – contracts that allows the buyer to trade a stock at a certain price by a certain time.
The PHLX has a history of embracing innovation. In 1975, it introduced PACE (Philadelphia Automated Communication and Execution), one of the first electronic stock order routing and execution systems in the US. Since 2007, the PHLX has been owned and operated by Nasdaq, another major exchange. This merger brought together two giants of American finance.
2. Paris Stock Exchange (Euronext Paris)
Euronext Paris, formerly known as the Paris Bourse was founded in 1802 in France. In 2000, it merged with several other European exchanges to form Euronext, becoming a pan-European financial powerhouse with over 800 companies listed.
The exchange is home to the CAC 40 Index, a benchmark stock market index that tracks 40 largest and most liquid French companies.
1. Amsterdam Stock Exchange (Euronext Amsterdam)
Euronext Amsterdam, formerly known as the Amsterdam Stock Exchange was established in 1602, shortly after the Dutch East India Company (VOC). It’s the first company to formally trade securities and is considered the birthplace of modern exchanges.
Now Euronext Amsterdam is a fully electronic exchange, ensuring fast and efficient trading practices. In 2000, it merged with the Paris Bourse and other European exchanges to form Euronext, creating a leading pan-European financial group.
Read More Blog: What are the Benefits of Stocks to invest in?
Final Line:
Amsterdam Stock Exchange is the pioneer of this system across the world. However, every exchange has contributed its share to the world economy.
