{"id":5718,"date":"2024-05-14T15:19:24","date_gmt":"2024-05-14T08:19:24","guid":{"rendered":"https:\/\/hva.group\/?p=5718"},"modified":"2024-12-03T07:24:00","modified_gmt":"2024-12-03T00:24:00","slug":"the-importance-of-the-stock-market-to-the-economy","status":"publish","type":"post","link":"https:\/\/hva.group\/en\/the-importance-of-the-stock-market-to-the-economy\/","title":{"rendered":"THE IMPORTANCE OF THE STOCK MARKET TO THE ECONOMY"},"content":{"rendered":"
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Stock market<\/strong> reflect luck <\/strong>economic dynamics. The fluctuations of stock indices, such as VN-Index, Dow Jones or Nikkei, become a bulletin about the health of the global economy. The stock market is not only a place for trading, but also a window opening a vision of the future of economies and businesses around the world.<\/p>\n\n\n\n

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1. What is the stock market?<\/h4>\n\n\n\n

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Stock market concept<\/strong> is a group of buyers and sellers of shares (or securities) that represent ownership in a business; it can include shares listed on a public stock exchange, or shares that are traded privately, such as shares of a private company sold to investors through crowdfunding platforms. Investments in the stock market are mostly made through stockbrokers and electronic trading platforms.<\/p>\n\n\n\n

>>> See more articles: Learn about stock order types: ato, atc, lo, mp<\/a><\/p>\n\n\n\n

There are 60 stock exchange<\/strong> worldwide. Of these, 16 exchanges have a market capitalization of $1 trillion or more, accounting for 87% of the world's market capitalization. Apart from the Australian Securities Exchange, these 16 exchanges are located in North America, Europe and Asia.<\/p>\n\n\n\n

The scale of global stock market<\/strong> by 2023, based on data from the World Federation of Exchanges (WFE) and the Securities Industry and Financial Markets Association (SIFMA). With a market capitalization of $46.2 trillion, the United States has the largest share of the global equity market, equivalent to 42.5%. This is nearly four times larger than the second-largest market, the European Union (EU) ($12.1 trillion, equivalent to 11.1%). China has the third-largest equity market in the world, with a market capitalization of $11.5 trillion, equivalent to 10.6%. It is followed by Japan ($5.8 trillion), Hong Kong ($4.3 trillion), the United Kingdom ($3.2 trillion), Canada ($3 trillion), Australia ($1.7 trillion), and Singapore ($600 billion).<\/p>\n\n\n\n

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Chart of the size of the global stock market in 2023<\/p>\n\n\n\n

>>> See more articles: How to handle margin calls for stock investors<\/a><\/p>\n\n\n\n

2. History of the formation of the world stock market<\/h4>\n\n\n\n

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In the late 15th century, Antwerp (Belgium) emerged as a center of international trade. Merchants took advantage of the anticipation of rising prices of certain commodities and traded them for profit. At the same time, basic bond trading also began to appear.<\/p>\n\n\n\n

In the early 16th century, an English official observed this model in Belgium and proposed the establishment of an exchange in London, England, which later became known as the London Stock Exchange. Similar exchanges were later established in France, Germany, and northern Europe.<\/p>\n\n\n\n

These market trading models have grown stronger with the participation of many members and diversified content. Their nature has led to the division into many different markets such as Commodity Market, Foreign Exchange Market, Futures Market and Stock Market, each market has its own characteristics that are convenient for participants.<\/p>\n\n\n\n

Some important events of World Securities<\/strong>:<\/p>\n\n\n\n