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Overview of top ten share markets in the world in 2019 based on market capitalization

Share market is a market where regular activities of issuance, purchase or selling of stocks of public companies take place. Financial instruments such as bonds, stocks or equities, corporate bonds, derivatives are traded in the share markets worldwide.

Market capitalization most commonly known as Market Cap is an instrument used to indicate the size or value of a company. Obtained by multiplying outstanding shares of a company by the current market price of the company. Based on market capitalization top ten share markets in the world are ranked as follows;

  1. New York Stock Exchange (NYSE), United States, established in 1972 is the largest stock exchange with a market cap of $22.923 trillion. NYSE hosts 82% of the S&P 500 as well as 70 of the largest world corporations.
  2. National Association of Securities Dealers Automated Quotations System (NASDAQ) also in the United States is the second largest share market with a market cap of $10.857 trillion. NASDAQ which was established in 1971 mostly consists of Tech stocks and lists companies in Global Select Market, Global Market or Capital Market.
  3. Tokyo Stock Exchange (TSE) established IN 1878 is the largest stock exchange in Japan with a market cap of $5.679 trillion. Its benchmark index is NIKKEI 225 consisting of Toyota, Sony, Honda and Suzuki.
  4. Shanghai Stock Exchange (SSE), the largest stock exchange in China, has a market cap of $4.026 trillion. Stocks listed in the SSE have different classes of shares; ‘A’ shares traded in local currency and ‘B’ shares traded in USD.
  5. Hong Kong Stock Exchange (SEHK) was founded in 1891 has a market cap of $3.936 trillion with HSBC Holdings, PetroChina and China Mobile as some of the biggest companies listed.
  6. EURONEXT, the largest stock exchange in Europe has its headquarters located in Amsterdam. It has a market cap of $3.927 trillion and stocks only trading in Euros.
  7. London Stock Exchange, United Kingdom, was founded in 1698 and has a market capitalization of $3.767 trillion. LSE is one of the most diverse stock market with companies form 40 different sectors.
  8. Shenzhen Stock Exchange (SZSE), China, was established in 1990 and has a market capitalization of $2.504 trillion.
  9. Toronto Stock Exchange in Canada is owned and operated by TMX group has a market cap of $2.095 trillion.
  10. Bombay Stock Exchange located in Mumbai India has a market cap of $2.056 trillion and the last of the top ten share markets.

Overview of ASX including historical evolution, industry categorization, number of listed companies (as 0f a date 2019) and importance of ASX in Australian economy

ASX is an Australian based exchange where traders buy and sell securities of listed companies and other financial instruments. It begun back in the 1800’s where Australian cities amalgamated existing exchanges. A corporate body, Australian Associated Stock Exchange (AASE), was formed in 1937 to govern the association hence formalising it. At this time trading was done using the auction based call system. This system proved to be inefficient especially during mining booms. This system was replaced by the post system.

 In 1987, Australian Stock Exchange was formed. At this time trading was done using the Electronic price dissemination system but in the same year they launched a new trading system, the Stock Exchange Automated Trading System (SEATS). In 2006, Australian Stock Exchange merged with the Sydney Stock Exchange and formed the current Australian Securities Exchange (ASX). With the merger, an Integrated Trading System (ITS) was implemented.

According to the Australian and New Zealand Standard Industrial Classification (ANZSIC), ASX is categorized in the financial industry. Today the Australian Stock Exchange is rated one of the most diverse share markets in the world with a market cap of A$1.9 trillion and more than 2000 listed companies.

ASX has the following importance to the economy;

  • It helps both local and international companies have access to cost effective capital.
  • It encourages saving and investments in the society.
  • It provides data and technology services to institutions that helps in making sound decisions.
  • Listed Companies are able to mitigate risk and acquire capital for growth through ASX.
  • It creates employment opportunities to Australian residents

Write a brief overview of the 3 selected companies from ASX including industry sector they belong to, key products, market capitalization, price performance over the past 5 years.

ALTHEA GROUP HOLDING LIMITED (AGH)

This company is categorised in the industry of Pharmaceuticals, Biotechnology and Life Sciences. It is responsible for governing and maintaining standards and practices that lead to the production, exportation and importation of medicinal cannabis in Australia. It has a market cap of AU$81.66 million. AGH has been experiencing volatile share prices in the past 5 years with the highest share price of AU$1.23 that happened this year in July and the lowest share price of AU$0.18 December last year. Below is a graph that shows its trend in the past 5 years;

DOMINO’S PIZZA ENTERPRISES LTD (DMP)

This company is categorised in the industry of Consumer Services. It has large restaurant chains all over the world that primarily sell and deliver pizza. It also offers franchise services. It has a market cap of AU$4.433 billion. DMP experienced an incline in its share price that saw its highest share price at AU$80.69 in August 2016. It since declined. In the present year its highest share price hit AU$53.63 in November and had its lowest share price of AU$40.23 in June. Below is a graph that shows its trend in the past 5 years;

TALON PETROLEUM LIMITED (TPD)

It is an Australian based company categorised in the industry of Energy. It is renowned for the exploring, production and development of petroleum resources in the United Kingdom. It has a market cap of AU$4.4 million. Below is a graph that shows its price performance in the past 5 years;

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