Question

Find information on the major financial markets in the US and also for the country you have chosen. This would include discussions of stock markets (NYSE, NASDAQ, etc. in the US) and a description of the stock exchanges for the country you chose. Discuss the nature and size of these markets (for example, how many firms are listed on the exchange; how much is traded in monetary terms on each day). In addition, provide information on interest rates in the US and in your country, again for the 3 most recent years available. For the US, provide information about rates such as the Prime Rate, the Fed Funds rate and an average of long-term commercial bonds rates. As close as you can, provide the same sort of information for your country. Discuss the values you find. Provide an explanation and interpretation of the material that you present and what it implies in terms of the working of the financial markets in this country.

Answer 1

There are numerous financial markets in the US. The major ones are the National Association of Securities Dealers Automated Quotation System (Nasdaq) which is the longest screen enabled stock exchange. New York Stock Exchange (NYSE), American Stock Exchange (AMEX) Other stock exchanges are Chicago Board Options Exchange (CBOE), International Securities Exchange (ISE), Philadelphia Stock Exchange (PHLX) and there are others also.

The Nasdaq has around 3300 companies listed under it. The daily business in Nasdaq is around $0.20 trillion on average. The prime rate in the US is around 5.50 in a year. It was around 3.25 a month ago. The Feds Fund rate in the US is around 2.50 a year ago. At present, it is 0.25. The average of long-term commercial bond rates was around 3.18% in 2019.

The stock exchange in India is around 23 from which the Bombay Stock Exchange and National Stock Exchange are the prime ones. There are around 5000 companies listed in the BSE and around 1600 companies listed in NSE in India. The daily average trading in the BSE is around $ 3 billion.

The interpretation which we gate is that Nasdaq is doing a high volume of trading daily as compared to the Bombay Stock Exchange in India. Beside that the listed number of companies is more in BSE rather than nasdaq.