In 2021, if you are thinking to invest in stock trading, it necessary to understand the concept of it. To get started, you must know what is stock list, what are stock exchanges, what are the popular stock exchanges in the world. By keeping the track of stock list and exchanges, it will help you to know which share to buy.
Depending on where you live stock list has different names like price list, stock exchange list, or stock exchange table. In this article, I will share what exactly is Stock list, what is market cap, and what are the popular stock exchanges in 2021.
What is Stock List?
As it name sounds, a stock list is list of stocks that is listed on different exchange markets. Each exchange has its own one or more share lists in which all companies or shares are listed. Every list is categorized by market capitalization.
It means how much a company’s share worth. It must be clear now how the companies are listed on the share list. The largest companies with high share worth are listed on top, the medium-sized companies with less worth are listed after large ones and small sized companies are listed in the last.
The most talked about stock exchange lists are Large cap, Mid cap, and Small cap. On the stock exchanges, companies are categorized by the market capitalization as follows:
- Small-cap: $300 million to $2 billion
- Mip-cap: $2 billion to $10 billion
- Large-cap: $10 billion to maximum
Lets take an example to calculate the company’s market cap. If a company has 2 million outstanding shares and each share worth is $30, then market cap of that company is $60 million. It is a important point to consider as it tells you how strong the company is and should you invest in or not.
How Stock Exchange Works?
A stock exchange is a market that doesn’t own the stocks, only the stock buyers connect with stock sellers to purchase a stock of any company. Depending on where you are, there are many exchanges like New York Stock Exchange, Nasdaq, NGM Equity and many more. In stock market, financial instruments are traded like bonds, equities, and commodities.
Exchanges connect the corporations and governments with the investor or buyer. The purpose of exchange is to provide liquidity in the market that means enough buyer and sellers should ready to trade in. They also have the responsibility to run the trade smoothly and in fair manner. All things are kept open to the investors so that they can understand which company to invest their money.
Popular Stock Exchanges in the World
Every person who is interested in investment in stock market asked a question what are the popular and common used stock exchanges in the world. Stock exchanges give you detailed information of every company that is listed there. You can understand which company worth your investment. Below are a list of exchanges that are widely used around the world:
- New York Stock Exchange (NYSE)
- Bolsas Mercados Exchange
- NASDAQ Nordic
- NASDAQ First North
- NASDAQ OMX
- London Stock Exchange
- NGM Nordic MTF
- NGM Equity
- Spotlight Stock Market
- The Taiwan Stock Exchange
- The Korea Exchange
- The Swiss Exchange
- Australian Securities Exchange (ASX)
- National Stock Exchange of India
- X-terna Listan
- American Stock Exchange (Amex)
Above I have mentioned most popular stock exchanges from around the world. I recommend you to do some research on your own also to get the right exchange that suits you. Before investing in any company, do research and do paper work and choose that share and stock exchange that fulfills your needs.