Question

Discuss the major stock-market indexes used in the United States and globally. What are their characteristics?

Answer 1

The major stock-market indexes used in the United States and their characteristics –

New York Stock Exchange (NYSE): it is an auction market, where buying and selling take place between investors in an auction form. NYSE is the biggest exchange of these days where trading takes place for most of the blue chip company’s stocks.

NASDAQ: it is dealer’s market where trading happens through dealer networks and no trading take place on physical trading floor and it’s operate through a telecommunications network. Nasdaq is biggest over-the-counter (OTC) market of present time and trading of stocks happen of through Electronic Communications Networks (ECN) which is fully automated system.

The major stock-market indexes used globally and their characteristics –

London Stock Exchange (LSE) of UK: it is one of the oldest stock exchanges in the world. There are many electronic platforms on which the different products trade on London Stock Exchange.

Frankfurt stock exchange (FRA) of Germany: it is 10^th largest stock exchange in the world by market capitalization. It is one of the most efficient trading facilities in the world.

Tokyo stock exchange (TSE) of Japan: It is the 4^th largest stock exchange in the world by market capitalization and largest in Asia.