Economics

Countries Trading The Most In Stocks

All stocks traded in the United States are valued at US $41.4 Trillion, followed by those of China at US $39.3 Trillion.

Stock value is a stock that is trading at a lower stock price compared to the piece of its fundamentals such as dividends, sales, and its earnings.When a stock trades at a price lower than its dividends, then it is referred to as an undervalued stock. A stock value is always perceived to be riskier than growth stock due to investor’s perception of the company. For a stock to gain value, it will take a long time, and therefore the investor has to exercise a lot of patience if he wants to make a profit. Stock valuation is a crucial aspect in predicting future market prices and profits. Stock valuation also predicts the expected growth of the company. Millions of stocks worth billions of US dollars are traded in the stock exchange market every day. Most of these stocks are traded in various countries around the world. Some of the countries trading the most stocks are:

United States

US Stock exchanges have gone through various changes since it was established in 1796. America Stock Exchange began with people buying and selling stock behind trucks in New York City, but now US stock market is a force in the stock market worldwide. As at 2015, US total stock valued at $41.4 trillion USD was traded across the eight major stock indexes. Dow Jones and NASDAQ were the most active markets accounting for 43% of the value of stock traded in 2015. The high volume of stock traded in the US has brought in investor confidence and creation of extra revenues for the listed companies.

China

China’s stock market has responded positively to a significant crash for three weeks in August. China stock market recovered to post a total traded stock volume worth US $39.3 trillion. The market was affected by decelerating credit growth, structural reforms, and several market adjustments. During the period of the crash, Shanghai Stock Exchange composite fell -8.5%, the lowest in the history of China Stock Market. The crash scared investors who were not willing to invest in the economy leading to a slowdown in growth and volumes of trading.

Japan

Japan traded stock volumes in 2015 were pushed up by the weak yen that also facilitated corporate earnings. Multinational firms such as Honda Motor, Sony, Toyota Motor, and Canon also benefited from the weaker currency. Despite trading in stock worth US $ 5.5 trillion in 2015, a 10% increase compare to 2014, the domestic economy did not gain much. The gains from the improvement realized from the value of stock traded were the likelihood of investors taking notice of the average return on equity which pushes them to invest back into Japan’s economy.

Conclusion

Hong Kong, South Korea, Germany, and Canada also reported over one trillion dollars worth of stock traded in the various stock markets. These high turnovers were realized because of the relatively calm trading environment in 2015 and a stable currency in most of these economies. Using 2015 market performance and volumes of stock traded economists have predicted a positive economic growth in most of the countries. The US is expected to benefit more from the large volumes since its impressive performance in 2015 boosted investor confidence.

Countries Trading The Most Stocks

RankCountry2015 Value of All Stocks Traded ($US)
1United States$41,398,501,970,000
2China$39,326,016,590,000
3Japan$5,571,527,250,000
4Hong Kong$2,068,670,580,000
5South Korea$1,843,731,080,000
6Germany$1,444,613,090,000
7Canada$1,096,269,370,000
8Spain$978,396,430,000
9Switzerland$955,219,290,000
10India$771,997,910,000

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