Trading on the stock market can be an exciting way to invest your money, but some people are hesitant to jump in. They’re worried about how much money is traded on the stock market daily.
So, we decided to do some research to find out how much money is traded on the stock market each day. We were surprised by what we found.
You can read our findings below.
The Stock Market
The Stock Market is a term used to describe the free market economy where shares of publicly quoted companies and other equity shares are bought and sold without any form of entry or exit restrictions. The value of daily transactions in the stock market is hard to estimate due to the huge volumes of securities changing hands by the second. Moreover, due to the fluidity of the market, it can be very difficult to give an accurate value of daily trades on a global scale; however, when done on an exchange by exchange basis, the situation becomes clearer. Here are some financial, statistical facts about the stock market.
Daily Trades
No one can tell for sure how much is traded daily on a global scale, but according to HSBC data, the value of securities traded on the NYSE is $5.1 trillion every 24 hours, and between 2-6 billion securities change hands in the process. Meaning that the volume is likely double when you factor in the trading activities of other exchanges like NASDAQ, Dow, and others.
Here are other important data
Global Market Value
According to CNBC, the value of the global stock market is estimated to be about $95 trillion as of 2020. The estimate came as a result of increased confidence in the efficacy of vaccines for the pandemic. While no one can claim that the $95 trillion figure is 100% correct, this figure paints a good picture of the value of the market worldwide.
When you break this figure down on a country-by-country basis, the data becomes even more interesting.
The US holds sway
For instance, the New York Stock Exchange and the NASDAQ have a huge chunk of the market value. Of the $95 trillion worth of securities in the global stock marketplace, these two US exchanges control 54.5% of the lot, which translates to $51 trillion. The influence of these exchanges is not difficult to understand. The United States of America has long been the global capital of Finance, especially since after the Second World War and being a hub of technology innovation, owners of capital are drawn to the investment opportunities present in the US. Furthermore, the NYSE and NASDAQ are two of the most technologically advanced stock exchanges in the world. These factors best explain why the US controls more than half of the global market.
A Bullish Run
Th value of the market has risen astronomically over the last 10 years, according to market analysts. This rise was influenced by a decade-long Bullish Run that lasted for almost 20 years before it was ended by the pandemic of 2020. This phenomenon caught observers by surprise because the longest bullish run recorded was just 4 years and 6 months. In fact, many believe that, but for the pandemic, which created panic and uncertainty in the market, the run would have continued for a few more years.
Several Blue Chip Companies did well
Over the last 10 years, many blue-chip companies did quite well. Companies like Tesla, Apple, Google, Amazon, Walmart, and many others posted amazing numbers. However, not all of them were privately owned though. For example, Saudi Arabia’s Aramco was also a major contributor to the global value of the stock market. As of the end of 2020, Aramco had the highest market capitalization globally, which stood at $1.68 trillion, which is also 2% of the global stock market value.