Introduction
When it comes to buying a loan on stocks, people often ask about the largest stock exchanges in the world. It is the right of the investor to know where the stock loan companies will keep his/ her stocks. And the most popular name that comes first in everyone’s mind is the ‘New York Stock Exchange.’ And obviously, why not? It is a prominent leader among the highly known stock exchanges today. But are there more larger players on the field? Of course, a big yes! Let’s learn about them in this blog.
Stock Exchanges and Stock Loan Companies are DIFFERENT
Many people often confuse stock exchanges either with the companies that offer stock loans or with individual lenders. If you also do, then clear out this confusion right away. Both the stock exchanges and stock loan providers (companies and lenders) are different from each other. Basically, these companies are the providers of collateral loans whereas the stock exchanges are the platforms where your invested stocks (via loan) are exchanged or kept.
Let us have a clear differentiation between the two below:
| Stock Exchanges | Stock Loan Companies |
| Platforms for buying and selling stocks and other securities | Financial institutions that provide loans secured by stock holdings |
| Examples: NYSE, NASDAQ, LSE, etc. | Example: Worldwide Stock Loans, etc. |
The Top Players of Stock Exchanges Around You
Now, let us learn about the emerging players in the market of stock exchanges below:
The New York Stock Exchange (NYSE):
The NYSE is neither the oldest stock exchange nor it hosts a larger number of stock-based loan companies. Then, why is it the leading name among the top stock exchanges? Because of its market capitalization of $19 trillion.
NASDAQ:
Sometimes, people confuse NASDAQ with NYSE. But they are not the same at all. The NASDAQ holds a market cap of $6 trillion (approx. 3 times less than NYSE). Despite that, it hosts major tech companies such as Apple and Microsoft.
The London Stock Exchange (LSE):
Established almost 215 years ago, LSE, although smaller than NASDAQ in market cap, finds its utmost relevance in global finance.
Tokyo Stock Exchange (TSE):
Despite marking a significant decline in market cap and the number of companies offering stock loan services listed, it is a well-known stock exchange player in the financial market of Asia.
Shanghai Stock Exchange (SSE):
It is the major stock exchange of China that has boosted the country’s economy in past years.
Hong Kong Stock Exchange (HKEX):
Established under British rule almost 125 years ago, HKEX has become a popular name both historically and economically.
Euronext:
Being a pan-European exchange, its market cap is equal to HKEX standing at $3.32 trillion. Despite being in the front for the past 16 years only, it has strengthened the overall financial European market.
The Toronto Stock Exchange (TSE):
One of the oldest stock exchanges in North America, TSE has left an undeniable impact on the Canadian economy.
Shenzhen Stock Exchange (SZSE):
Based in Western China, it has a market cap of $2.28 trillion. With its focus on tech and innovation, it is a critical player in the economic strategy of China.
Frankfurt Stock Exchange (FSE):
Being one of the oldest stock exchanges at nearly 431 years old in Germany, FSE has a market cap of $1.77 trillion.
Bombay Stock Exchange (BSE):
With a market cap of $1.68 trillion, BSE is one of the oldest stock exchanges in Asia and the key player in the Indian market.
National Stock Exchange (NSE):
The NSE of India has a market cap of $1.64 trillion. It has helped a lot in shaping the financial sector of India’s economy at a rapid pace.
SIX Swiss Exchange:
SIX Swiss Exchange, a stock exchange for share-backed companies in Switzerland, has a market cap of $1.51 trillion.
Australian Securities Exchange (ASX):
One of the top economic activities in the Asia-Pacific region, ASX owns a market capitalization of $1.27 trillion.
Korea Exchange (KRX):
The overall share of KRX in the global market is about $1.25 trillion. As a result, it has been successful in the global technology and automotive sectors.
Nasdaq Nordic:
This stock exchange brings together all the stock-secured loan companies of Nordic countries together. Ultimately, it has a market cap of $1.21 trillion.
JSE Limited:
JSE Limited, meaning Johannesburg Stock Exchange, is the largest stock exchange in Africa with a total market cap of $951 billion.
Madrid Stock Exchange (Bolsa de Madrid):
Being a very important part of the Eurozone’s financial structure, this stock exchange owns a market capitalization of $942 billion.
Taiwan Stock Exchange (TWSE):
Taiwan’s stock exchange has strong hands in the technology and electronics sectors with a total market cap of $861 billion.
B3 (Brasil Bolsa Balcão):
It was formed when two Brazilian entities merged. Today, it has built up a market cap of around $824 billion leaving an unforgettable impact on the financial and economic significance of South America.
German Stock Exchange:
It has 40 major German blue-chip companies.
Borsa Italiana:
Being an Italian stock exchange, it owns a market cap of $653 billion.
Moscow Exchange (MOEX):
Moscow’s financial market has already suffered from a lot of financial challenges, still, it has been successful in building a market cap of $447 billion. Also, it has made Russia a substantial natural resource base and economic activity.
Singapore Exchange:
With a $639 billion market cap, the Singapore Exchange has made the country a financial hub today.
Tadawul (Saudi Stock Exchange):
It has specializations in the oil and energy sectors. And, it has created a market cap of $442 billion for the Middle Eastern market.
Mexican Stock Exchange (BMV):
With a substantial growth in the market cap of $426 billion, it is important for Latin America’s financial markets.
Bursa Malaysia:
Also known by the name “Malaysian Exchange”, “Bursa Malaysia” is a representative stock exchange of Southeast Asia with a market capitalization of $380 billion.
Stock Exchange of Thailand (SET):
The major reason for Thailand’s economic growth and development is SET with a total market cap of $368 billion.
Indonesia Stock Exchange (IDX):
IDX has provided investment opportunities to a financially growing country like Indonesia with a total market cap of $347 billion.
Philippine Stock Exchange (PSE):
With a market cap of $238 billion, it has emerged the Philippines out as a country with market potential in Southeast Asia.
Conclusion
Overall, the market has leading names in terms of stock exchange who have served vigorously in shaping the global market. Every stock exchange has a valuable role in the economy of the world as a whole. While stock exchanges involve buying and selling securities, stock loan services, including stock-secured loans, stock-based loans, and share-backed finance, are very important tools for investments. Hence, both stock exchanges and the companies offering securities-backed lending are equally significant.
