The Largest Stock Exchange:
An In-depth Look at the New York Stock Exchange
The stock market is a financial marketplace or a collective trading network that involves stocks. It is a vast and complex network of trading activities where investors can buy and sell shares of publicly listed companies in stock exchanges such as the New York Stock Exchange (NYSE) and Nasdaq. It is an avenue for companies to raise money through the issuance of stocks. The stock market also provides earning opportunities for investors through price appreciation and dividends. The stock market’s performance through stock exchanges is often seen as an indicator of economic growth and health. 1
The Biggest Stock Exchange
In the world, there are more than 60 major stock exchanges that listed approximately 55,214 publicly traded companies as of December 2023.² Among the leading stock markets, the New York Stock Exchange (NYSE) achieved the highest equity market capitalization as of March 2024 which is over 28 trillion U.S. dollars, followed by NASDAQ, the Euronext, and the Japan Exchange Group.³ Due to the NYSE’s high equity market capitalization, it is considered the biggest stock exchange and one of the most influential institutions globally.
NYSE’s Historical Background
The New York Stock Exchange (NYSE), the first U.S. formalized stock exchange, originated in New York City and was established on May 17, 1792. During that time, 24 stockbrokers and merchants signed the Buttonwood Agreement which was an accord to create a stock exchange on Wall Street in New York City.⁴ The Agreement served as the foundation for the creation of the NYSE which kicked off with five securities that included two bank stocks and three government bonds.
On March 8, 2006, NYSE was acquired by Archipelago, an electronic trading exchange, which resulted in NYSE becoming a public entity. After a year, NYSE merged with Euronext, the largest European Stock Exchange, and created the NYSE Euronext. NYSE Euronext was then acquired by the Intercontinental Exchange, Inc. (ICE). ⁴
Economic Impact
Intending to drive transformation, NYSE helps businesses and entrepreneurs raise capital and funds to establish, grow, innovate, and expand. By listing companies, the NYSE catalyzes job creation, new product developments or innovations, technological advancement, and overall economic growth of various countries. Also, with its exceptional expertise, world-class technology, stable global clearing services, and other transformative services, the New York Stock Exchange provides high-return investment options for individuals and institutions, resulting in improved economic performance. 6
Investing in NYSE
As the oldest, most influential, and largest U.S. securities exchange, NYSE offers advantageous opportunities for individual and corporate investors. NYSE is home to more than 2,000 listed domestic and international companies, including some industry leaders worldwide such as Apple, Microsoft, and Coca-Cola. It also covers numerous industries such as technology, healthcare, finance, and energy. The diversity that the NYSE provides offers several investment options for investors. Aside from that, having the highest market capitalization, the NYSE ensures stability as it reflects the size and economic impact of the listed companies. Lastly, the NYSE’s high trading volume provides sufficient liquidity that makes the process convenient for investors to buy and sell shares at desirable prices. 5 6
Sources:
1 “What Is the Stock Market and How Does It Work?” Investopedia, April 12, 2024, https://www.investopedia.com/terms/s/stockmarket.asp
2 “Stock Exchanges Around the World” Investopedia, January 31, 2024, https://www.investopedia.com/financial-edge/1212/stock-exchanges-around-the-world.aspx
3 “Largest stock exchange operators worldwide as of March 2024, by market capitalization of listed companies (in trillion U.S. dollars)” Statista, May 15, 2024, https://www.statista.com/statistics/270126/largest-stock-exchange-operators-by-market-capitalization-of-listed-companies/
4 “New York Stock Exchange (NYSE): Definition, How It Works, History” Investopedia, August 31, 2022, https://www.investopedia.com/terms/n/nyse.asp
5 “Comparison of the number of listed companies on the New York Stock Exchange (NYSE) and Nasdaq from 2018 to 2023, by domicile” Statista, May 17, 2024, https://www.statista.com/statistics/1277216/nyse-nasdaq-comparison-number-listed-companies/#:~:text=As%20of%20the%20end%20of,much%20higher%2C%20standing%20at%203%2C432.
6 “NYSE Home Page” NYSE, 2024, https://www.nyse.com/index
