History of Stock Exchange - Finance Study Pool

History of Stock Exchange

The origins of stock exchanges may be traced back to the 1600s in Europe, when trading in shares of joint-stock corporations began. The Amsterdam Stock Exchange, founded in 1720, was one of the earliest modern stock exchanges and a major trading center for Dutch East India Company shares.
History of Stock Exchange - Finance Study Pool
History of Stock Exchange - Finance Study Pool

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The London Stock Exchange, founded in 1773, is one of the world's oldest stock exchanges and is still in operation today. The New York Stock Exchange (NYSE), founded in 1792, is the world's largest stock exchange by market capitalization.

Throughout the nineteenth and twentieth centuries, stock markets sprung up in different nations across the world, facilitating investment and funding for enterprises. Today, stock exchanges can be found in virtually every country and play a significant role in the global financial system.

In recent decades, advances in technology have transformed the stock exchange industry, making it possible for people to trade stocks and other securities electronically, from anywhere in the world. This has led to greater efficiency, transparency, and accessibility for investors, but has also posed new challenges for regulators and raised concerns about market stability.

As of 2021, the New York Stock Exchange (NYSE) is widely considered to be the largest and most popular stock exchange in the world, measured by market capitalization. It has been in existence since 1792 and is situated in New York City.

The New York Stock Exchange (NYSE) is famous for its iconic trading floor, where stock transactions have been made in person for more than two centuries, but majority of its trading is now done electronically. The NYSE is home to several of the world's largest and most well-known corporations, including Amazon, Apple, Goldman Sachs, and Johnson & Johnson.

Other stock exchanges, such as the NASDAQ, have increased in size and prominence in recent years. The NASDAQ, founded in 1971 in New York City, is the world's second-largest stock exchange and is noted for its emphasis on technology and high-growth firms.

Here is a list of some of the most popular stock exchanges in the world:

New York Stock Exchange (NYSE) in the United States

  • NASDAQ - United States
  • Tokyo Stock Exchange (TSE) - Japan
  • Shanghai Stock Exchange (SSE) - China
  • Hong Kong Stock Exchange (HKEX)  in Hong Kong
  • Euronext - Europe (comprising exchanges in Amsterdam, Brussels, Lisbon, and Paris)
  • London Stock Exchange (LSE) - United Kingdom
  • S&P/TSX Composite - Canada
  • Shenzhen Stock Exchange (SZSE) – China
  • Deutsche Boerse - Germany
This is by no means a comprehensive list, and many other stock exchanges around the world are also important. These exchanges serve as a marketplace for buying and selling stocks and other securities and play a critical role in the global financial system.

Pakistan Stock Exchange (PSX) 

Pakistan Stock Exchange (PSX) is the stock exchange of Pakistan, located in the city of Karachi. It was previously known as Karachi Stock Exchange (KSE) and was established in 1947. It was renamed PSX in 2016 after it merged with the Lahore Stock Exchange and Islamabad Stock Exchange. Today, it is one of the largest stock exchanges in South Asia with a market capitalization of over $100 billion as of 2022. PSX operates under the supervision of the Securities and Exchange Commission of Pakistan (SECP) and offers trading in shares of companies listed on it, bonds, and other securities.

The Pakistan Stock Exchange (PSX) offers trading in various types of securities, including:

  1. Stocks: Represent ownership in a company and provide a way for investors to participate in the growth and success of the company.
  2. Bonds: Represent debt obligations issued by companies and government entities. Investors who purchase bonds receive regular interest payments and receive the return of their principal when the bond matures.
  3. Mutual Funds: Pool money from many investors to buy a diversified portfolio of stocks, bonds, and other securities.
  4. Exchange-Traded Funds (ETFs): Similar to mutual funds, ETFs provide a way for investors to invest in a diversified portfolio of securities, but they trade like individual stocks on the exchange.
  5. Futures: Contracts that obligate the holder to buy or sell an underlying security at a predetermined price on a future date.
As of my training data cut off in 2022, there were over 600 companies listed on the Pakistan Stock Exchange (PSX).

Some of the largest and most well-known companies listed on the PSX include:

  • Habib Bank Limited (HBL)
  • United Bank Limited (UBL)
  • National Bank of Pakistan (NBP)
  • Oil and Gas Development Company (OGDC)
  • Pakistan State Oil (PSO)
  • Engro Corporation (ENGRO)
  • Lucky Cement Limited (LUCK)
  • Fauji Fertilizer Company (FFC)
  • MCB Bank Limited (MCB)
  • Hub Power Company (HUBCO)
M.A Jinnah

As an Editor-in-Chief of financestudypool.com, my role is to supervise the website’s content creation, management, and publication process.

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