Question

List major stock exchanges in the US and around the world. Discuss some of the important characteristics of each of these exchanges.

Answer 1

Some of the major Stock Exchanges are:

1. NYSE ------ USA
2. NASDAQ ------USA
3. LSE --------UK
4. BSE --------INDIA
5. Shanghai Stock Exchange -------CHINA

NYSE - New York Stock Exchange

This accounts for trading in North America. It still uses physical trading floor in wall street in New York. It is an auction market. The auction happens among the buyers and sellers.

NASDAQ

It also accounts the trading in North America. It uses telecommunication centres for trades to happen. It is a dealer market i.e. investors doesn't buy or sell directly rather have to trade through dealers. These dealers are also called as market makers.

LSE

It is the primary stock exchange of the UK and the largest in Europe. It is a free market and deregulated exchange. There are multiple ways or status of companies to join the exchange i.e Premium or Standard or Other Segments. Premium segment companies can only issue equity shares whereas the Standard segment can issue equity as well as GDRs and Debts also.

BSE

It is the largest and first security market of India. It is based in Mumbai. The securities that are lsted are stock, stock options, stock futures, index options, index futures. The benchmark index SENSEX consists of 30 companies and a free-float market-weighted index.

Shanghai Stock Exchange

Largest stock exchange of Mainland China. If a company wants to get listed then it needs CSRC's approval and must have minium RMB 50 million as share capital. It classifies the stocks into two classes i.e. A class, B class. B class are quoted in dollars and A class are quoted in yuan.