While stock exchanges all share the common goal of providing a marketplace where investors can buy and sell stocks, each exchange has its own unique characteristics, niche and history.

An overview of six major exchanges and the benchmark indexes that represent them provides insight into the diverse global marketplace. Top Stock Picking Strategies. Bombay Established in , the Bombay Stock Exchange BSE is the oldest stock exchange in Asia. In its earliest days, the exchange was an open-air market operating under the shade of banyan trees.

The exchange moved indoors in In it entered the digital age, replacing the rowdy shouting on the market floor with the quiet hum of computers.

With more than 5, listed companies, the BSE has the highest number of listings on any exchange in the world. It includes large, mid-size and small companies. Performance of the BSE is tracked using the Bombay Exchange Sensitive Index, commonly referred to as "Sensex. Sensex is calculated using a free-float adjusted market-capitalization methodology. Free floating indexes include only shares that are readily available for trading in the marketplace. Market-capitalization weighted indexes weigh individual components according to their market capitalization.

Under this methodology, larger companies carry a larger percentage weighting. The value of a capitalization-weighted index can be computed by adding up the collective market capitalizations of its members and dividing it by the number of securities in the index.

The alternative to weighting by market cap is a price-weighted index such as the Dow Jones Industrial Average. Emerging markets like India are fast becoming engines for future growth.

Find out how to get in on the ground floor. See The Indian Stock Market Tokyo The Tokyo Stock Exchange TSE was established in It is one of the most influential exchanges in the world. The TSE moved to electronic trading in Performance of the TSE is tracked using the Tokyo Stock Price Index TOPIX.

The TOPIX is a free-float adjusted market capitalization weighted index that tracks approximately 1, domestic companies. These companies represent what is known as the First Section, which makes up the bulk of the exchange's constituents and consists of large-capitalization companies. The TOPIX has a second section that represents approximately mid-cap companies and a Mothers section market of the high-growth and emerging stocks representing around firms.

Hong Kong Hong Kong 's first formal stock market, the Association of Stockbrokers in Hong Kong, was established in It officially took the name Hong Kong Stock Exchange in and is among the largest exchanges in Asia. Approximately 1, companies are listed on the exchange.

Trades have taken place electronically since The Hong Stock exchange is represented by the Hong Kong Stock Exchange Hang Seng Index , a free-float adjusted, capitalization-weighted index of approximately 40 companies. The Hang Seng Index is maintained by a subsidiary of Hang Seng Bank, and has been published since The Hang Seng members are also classified into one of four sub-indexes based on their main lines of business including commerce and industry, finance, utilities and properties.

The Hang Seng is the most widely quoted barometer for the Hong Kong economy. Because of Hong Kong's status as a special administrative region of China, there are close ties between the two economies and many Chinese companies are listed on the Hong Kong Exchange. London The London Stock exchange, which began formal operation in , traces its roots back to when John Castaing began to keep a list of stock and commodity prices.

Today, it is the largest stock exchange in Europe. It is also the most international of all stock exchanges offering investors the ability to purchase securities from more than 50 counties. The exchange moved to electronic trading in Stocks that trade on the London Stock Exchange are represented by the Financial Times Stock Exchange FTSE Share Index, also known as the "Footsie. Like most of its peers, the FTSE is a free-float, market capitalization weighted index.

Learn how British coffeehouses helped give rise to the juggernaut that is the NYSE. Check out The Birth Of Stock Exchanges. New York The New York Stock Exchange NYSE , also known as the " Big Board ," traces its roots back to when 24 brokers and merchants signed the Buttonwood Agreement , which set up securities trading on a commission basis.

Yahoo Finance - Business Finance, Stock Market, Quotes, News

One of the more sobering and notable dates in the exchange's long history is September 16, On that date, a bomb was detonated outside the NYSE building.

The building still bears the scars of the explosion, which killed 33 people and injured more than The NYSE is a blend of the old-fashioned open outcry auction with traders shouting orders and modern electronic trade execution. Each stock on the exchange has a specialist who oversees and facilitates all trades of that stock. Trades can be made via shouting orders to the specialist or by electronic orders. Performance of the NYSE is tracked using the NYSE Composite Index, which includes some 1, U.

The New York Stock Exchange describes the NYSE Composite Index as "a useful benchmark for investors who prefer to track global market performance in a single market. Nasdaq Developed in , the National Association of Securities Dealers Automated Quotations is the world's first electronic stock market.

List of stock market indices - Wikipedia

What began as a forum to trade smaller stocks has grown to become the highest volume stock exchange in the world. Stocks that trade on the Nasdaq exchange are represented by the Nasdaq Composite Index, a market capitalization-weighted index.

One of the index's key characteristics is its volatility, which has a direct relationship to the significant number of technology companies traded through the exchange. Learn some of the important differences in the way they operate and the securities that trade on them.

See The NYSE And Nasdaq: A World of Choice The Bombay, Tokyo, Hang Seng, London, New York and Nasdaq are some of the most widely recognized stock exchanges in the world. They are also just a few of the many exchanges through which buyers and sellers come together to trade securities. Other notable exchanges include regional facilities, such as the Toronto, Boston and Philadelphia Stock Exchanges.

Of course some stocks and other investments - such as bonds - can be bought and sold without going through an exchange. The number of innovative ways to invest money isn't quite as prolific as the number of investments available for purchase, but there is certainly no shortage of venues through which you can put your money to work or seek to make a fortune.

Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. A Global Tour By Lisa Smith Share. Top Stock Picking Strategies Bombay Established in , the Bombay Stock Exchange BSE is the oldest stock exchange in Asia.

We tell you about five of the most popular stock exchanges from around the globe. The Hong Kong Stock Exchange is the eighth largest in the world and easily accessible through ETFs. Find out everything you need to know about the eighth most traded currency in forex.

Learn some of the important differences in the way these exchanges operate and the securities that trade on them. Learn about ETFs that allow access to Hong Kong equities for investors seeking exposure to Hang Seng Index stocks traded on the Hong Kong Stock Exchange.

An exchange is an organized marketplace where securities and other financial instruments are traded. Learn about the stocks that are traded on the Nasdaq stock exchange, and discover the Nasdaq's relative volatility level An auction market is one in which stock buyers enter competitive bids and stock sellers enter competitive offers at the same Discover why Hong Kong is one of the world's leading tax havens.

Low taxation on high-net-worth individuals and corporations A stock can trade on any exchange on which it is listed.

And to be listed it must meet all of the exchange's listing requirements Learn about B shares and H shares of publicly listed companies in mainland China and Hong Kong stock exchanges, and the differences Learn the most commonly followed market and economic indicators used by market analysts to track the Chinese stock market An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies.

A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over No thanks, I prefer not making money.

Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers.

Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.