Major Stock Markets in the worlds

Most of the major securities markets are continuous. However, call market procedures are used when trading volume is low and orders have to accumulate over time in order to give dept to a market. Most organized markets use mixtures of both systems. For example, the NYSE generally is a continuous market. However, call market procedures are sued to set the opening prices of shared traded on NYSE. Major stock markets in US 2 national and Regional exchanges.

New York Stock Exchange (NYSE)

The New York Stock Exchange (NYSE), the largest organized securities market in the United States, was established in 1817 as the New York Stock and Exchange Board.

At the end of 2000, approximately 3000 companies had issues listed on the NYSE, for a total of an about 3200 stock issues with a total market value of more than $13.0 trillion.

The average number of shares traded daily on the NYSE has increased steadily and substantially. Prior to the 1960’s, the daily volume averaged less than 3 million shares, compared with current average daily volume in excess of 1 billion shares and numerous days when volume is over 1.3 billion shares.

The NYSE has dominated the other exchanges in the United States in trading volume. During the past decade, the NYSE has consistently accounted for about 85% of all shares traded on US listed exchanges, as compared with about 5 % for the American Stock Exchange and about 10% Regional exchange combined. Because shares price on the NYSE tend to the higher than those on other exchanges, the dollar value of trading on the NYSE has averaged about 87% of the total value of US trades, compared with less than 3 percent for the AMEX and 10% for the Regional exchanges.

American Stock Exchange (AMEX)

The American Stock Exchange (AMEX) is the second largest organized US security exchange in term of the number of listed companies, but in term of dollar value of trading, the AMEX is actually smaller than the two largest Regional exchanges- The Midwest and The Pacific. Its organization and procedures are quite similar to those of the New York Stock Exchange, except that its listing requirements are not as those of the NYSE. There are approximately 660 seats on the AMEX, with over 950 listed stocks and 325 listed bonds.

NASDAQ Stock Market

NASDAQ is the largest US electronic stock markets. With approximately 3300 companies, it lists more companies and, on average, trades more shares per day than any other US market. It is home to category-defining companies that are leaders across all area of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. Approximately 54% of NASDAQ-listed shares traded are reported to NASDAQ systems

The National Association of Security Dealers Automated Quotation System (NASDAQ) is he largest OTC market.

NASDAQ stock market is divided into two sectors: NASDAQ National and NASDAQ small cap market. Share volume is higher than on the NYSE but dollar volume is slightly less than that on the NYSE; Microsoft, Intel are listed in the NASDAQ.

Foreign Stock Exchanges

In addition to the domestic stock exchanges there are a number of foreign stock exchanges. In Canada, the Toronto Exchange and the Montreal Stock Exchange are the dominant exchanges. On the worldwide basis the Tokyo Stock Exchange and the London Stock Exchange are first and third in dollar volume, respectively; the New York Stock Exchange is second. Other important foreign stock exchanges include the Zurich Stock Exchanges (Switzerland), Sydney Stock Exchange (Australia), Paris Stock Exchange (France), Frankfurt Stock Exchange (Germany), Hong Kong Stock Exchange (China), and South African Stock Exchange. The foreign exchanges are organized in a fashion similar to those in the United States and create a marketplace in which the securities of companies based in the given country are traded. Often those companies are foreign subsidiaries of American companies.

London Stock Exchange

The London Stock Exchange (LSE) is a stock exchange located in London. Founded in 1801, it is one of the largest work exchanges in the world, with many overseas listings as well as UK companies.

The former Stock Exchange Tower, based in Threadneedle Street/Old Broad Street was open by Queen Elizabeth II in 1972 and housed the Trading Floor where traders would traditionally meet to conduct business. This becomes largely redundant with the advent of the “Big Bang” on 27 October 1986, which deregulated many of the Stock Exchange’s activities. It eliminated fixed commissions on security trades and allowed securities firm to act as brokers and dealers. It also enabled an increased use of computerized systems that allowed dealing rooms to take precedence over face to face trading.

In July 2004 the London Stock Exchange moved from Threadneedlee Street to Paternoster Squire close to St Paul’s Cathedral, still within the “Squire Mile”. It was officially opened by Queen Elizabeth II once again, accompanied by the Duke of Edinburgh, on 27 July 2004. The new building contains especially commissioned dynamic sculpture called “The Source”, by artist Greyworld.

The LSE is broken down into the Main Market and Alternative Investment Market or AIM. The FTSE actuaries’ series of indices tracks the performance of the London market. Shares in the LSE trade under the ticker symbol LSE.

Tokyo Stock Exchange (TSE)

The stock exchange headquartered in Tokyo, Japan. Tokyo Stock Exchange was established on May 15, 1878, and trading began on June 1^st of the same year. The Tokyo Stock Exchange is a stock Exchange Market located in Tokyo, Japan. It was shut down during World War II; after reorganization, trading resumed in May 16 1949.

The TSE dominates its country’s market much as the NYSE does the United States. Specially, about 87% of trades in volume and 83% of value occur on the TSE. The trading mechanism is a price driven system wherein investors submit bid and ask prices for stocks. At the end of 1999, there were about 1700 companies listed with a total market value of 300.2 trillion yen. Both domestic and foreign stocks are listed on the Tokyo Exchange.

Bombay Stock Exchange (BSE)

BSE is one of the oldest stock market in Asia. Its history dates back to nearly two centuries.

BSE is located in Dalal Street, Mumbai. Established in 1875, there are 3500 companies in the country which are listed and have a significant trading volume. As of July 2005, the market capitalization of the BSE is about Rs. 20 Trillion (US $466 Billion). The BSE ‘Sensex’ is a widely used market index for the BSE. As of 2005, it is among the 5 biggest stock exchanges in the world in term of number of transactions. Along with the NSE, the companies listed on the BSE have a combined market cap of $125.5 billion.

An informal group of 22 stcokbrokers had been trading under a banyan tree opposite the Town Hall of Bombay from mid-1850s. this banyan tree still stands in Horniman Circle Park, Mumbai. This informal group of stockbrokers organized themselves as ‘The Native Share and Stockbrokers Association’ which, in 1875, was formally organized as the Bombay Stock Exchange.

Premchand Roychand was a leading stockbroker of that time, and he assisted in setting out traditions, conventions, and procedures for the trading of stocks at BSE and they are still being followed.

James M Maclean inaugurated the Brokers’ Hall in January 1899. After the First World War, BSE was shifted to an old building, near the Bombay Town Hall and in 1928, the plot on which the BSE building now stands, on Dalal Street, was acquired, and a building was constructed in 1930.

The BSE followed the familiar outcry system for stock trading, which was replaced in the year 1995, with screen-based eTrading, BSE is presently housed in a 28-storied Jeejeebhoy Towers, where the older structure once stood: the present building derives its name from Sir Phiroze Jamshedjee Jeejeebhoy, the chairman of the BSE from 1966, until his death in 1980.

The BSE Sensex is a value-weighted index coposed of 30 companies, with the base April 1979 = 100. The set of companies in the index is essentially fixed. These companies account for around one-fifth of the market capitalization of the BSE.