The stock market is a place where public company shares are bought and sold. When we buy stock, we own a part of the company. The value of our ownership is determined by how many shares the company has issued and how many we have. The stock market is governed by rules to ensure fair and transparent trading. Stock prices are influenced by both fundamental and technical factors, such as company performance, market sentiment, and previous price action.
Stock Exchange
Stock exchanges are physical or electronic places where we can buy and sell stocks and other securities. India has two main stock exchanges, such as BSE and NSE. These exchanges provide a platform for investors to buy and sell shares of listed companies. The stock exchanges are crucial for capital formation, price discovery, and market liquidity. Stock exchanges allow institutional and individual investors to participate in the equity markets.
Stock Index
A stock index is a statistical measure that tracks a group of stocks to measure the overall market or a particular sector. Indices are created by selecting stocks based on market cap, industry, or trading volume. The index follows a sample of companies to give a picture of the entire market.
The Nasdaq Composite, Dow Jones Industrial Average, S&P 500, and NIFTY 50 are some of the most popular stock indices. These are the benchmarks used to measure the performance of mutual funds, individual stocks, and investment portfolios.
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List Of 10 Highest Returns Of Stock Index In The World
Top 10 Highest Returns of Stock Index in the World for the Last 10 Years
NASDAQ, United States
NASDAQ is the 2nd largest stock exchange in the world by number of shares traded. It’s an American stock exchange based in New York City, USA. The Nasdaq Composite Index was launched on February 8, 1971, with a starting value of 100. It’s heavily weighted towards technology stocks. In 2024, The index has listed 3982 companies.
The NASDAQ has a market capitalisation of US $25.966 trillion as of May 2024. In the past 10 years, the index has had substantial growth, and it has increased by 301.90% from July 2014 until July 2024. The NASDAQ has given high returns compared to other indexes in the world for the last 10 years. The index is currently trading at an all-time high of 18031.29, as of July 1, 2024.
Nifty 50, India
NIfty50 is one of the largest stock exchanges in India. It has the weighted average of the top 50 of the largest Indian companies listed on the national stock exchange. It is the world’s most actively traded contract. The Nifty50 was launched on April 22, 1996. It covers 13 sectors of the Indian economy.
In June 2024, the NIFTY 50 allocated 34.11% of its weight to financial services, which includes banking, 12.06% to information technology, 12.52% to oil and gas, 8.03% to consumer goods, and 8.06% to the automotive sector.
The NSE has close to 2255 listed companies with a market capitalization of $4.90 trillion as of May 2024. In the past decade, the index has had significant growth, and it has increased by 225.27% from July 2014 until July 3, 2024. The Nifty50 index is now trading at its all-time high of 24307.25 as of July 3, 2024.
S&P500, United States
The Standard and Poor’s 500 (S&P 500) is a stock market index used for the valuation of 500 of the largest firms on stock exchanges in the United States. It was officially launched on March 4, 1957. The S&P 500 is one of the biggest, and it accounts for about 80% of the capitalization market of United States public companies.
The S&P 500 index has a market capitalization of over $46.238 trillion as of July 2, 2024. Over the past ten years, the index has given a return of 179.99% until July 2024. The S&P 500 is currently trading near its all-time high of 5523.64 as of June 28,2024.
Nikkei 225 stock index, Japan
The Nikkei 225 is a stock market index used to track the performance of 225 of the largest and most liquid publicly traded companies in Japan across various industry sectors. The index is a price-weighted index. The Nikkei 225 Index was established on September 7, 1950, and operates for the Tokyo Stock Exchange (TSE).
The Japan Exchange Group has a market capitalization of $6.317 trillion as of May 2024. Over the subsequent decade, the index experienced a remarkable surge of 169.09%. The Nikkei 225 Index has now traded at 40580.69, which is trading below the all-time high of 41087.75 on March 22, 2024.
Taiwan Weighted Stock Index, Taiwan
The Taiwan Weighted Stock Index is a market capitalization-weighted index that tracks all common stocks listed on the Taiwan Stock Exchange (TWSE). The index was published in 1967 and has a base value of 100. The Taiwan Stock Exchange has listed 971 companies as of 2022.
The Taiwan Stock Exchange had a combined market capitalization of $2.075 trillion as of May 2024. In the last 10 years, the index has had substantial growth, and it has increased by 144.03% from July 2014 until July 2024. The Taiwan Weighted Stock Index has now traded at 23172.43 on July 3, 2024, which is below its all-time high of 23406.10 reached on June 20, 2024.
DAX stock index, Germany
The DAX Stock Index is a stock market index consisting of the 40 major German blue chip companies trading on the Frankfurt Stock Exchange. The index measures the performance of the Prime Standard’s 40 largest German companies in terms of order book volume and market capitalization. The DAX Stock Index was established on July 1, 1988.
The DAX Stock Index has a market capitalization of $1.886 trillion. Over the past 10 years, the DAX Stock Index value has increased by 85.06% from July 2014 to July 2024. The Index is currently trading at 18264.86, which is below the all-time high of 18892.92 reached on May 15, 2024.
CAC 40 stock index, France
The CAC 40 stock index is a capitalization-weighted benchmark comprising the 40 most influential stocks from the 100 largest market capitalizations listed on Euronext Paris. It is the benchmark French Stock Market Index. The CAC 40 Stock Index was established on December 31, 1987.
The Euronext Exchange has a market capitalization of $7.043 trillion as of May 2024. The CAC 40 Stock Index has experienced a remarkable 68.68% increase in value over the past 10 years, The index is now trading at 7613.33, which is below its all-time high of 8259.19 touched on May 10, 2024.
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SSE Composite Index, China
The SSE Composite Index tracks the performance of all stocks listed on the Shanghai Stock Exchange. The Shanghai Stock Exchange is the world’s third-largest stock market by market capitalization. It is Asia’s biggest stock exchange. The SSE Composite Index was launched on July 15, 1991.
The SSE Composite Index has a market capitalization of $6.630 trillion as of May 2024. In the last 10 years, the SSE Composite Index has experienced a remarkable 44.84% from July 2014 to July 2024. The SSE Composite Index was currently trading at 2982.3755, which is below the all-time high of 6124.0439 reached on October 15, 2007.
SZSE 300 Index, China
The SZSE 300 Index is a stock market index of the Shenzhen Stock Exchange, representing the 300 largest companies by free float-adjusted market capitalization. It is a sub-index of the SZSE Component Index, SZSE 1000 Index, and SZSE Composite Index. The SZSE 300 was launched on November 4, 2024. The Shenzhen Stock Exchange has listed 2844 companies.
The Shenzhen Stock Exchange has a market capitalization of $4.024 trillion as of May 2024. Over the past 10 years, the index has experienced a significant increase of 32.41%. The SZSE 300 Index is trading at 3727.4758, which is below the all-time high of 7302.7998 touched on July 15, 2015.
FTSE 100 Index, United Kingdom
The FTSE 100 Index is a stock market index of the 100 most highly capitalized blue chip companies listed on the London Stock Exchange. It was established on January 3, 1984. The FTSW 100 Index has 32 sectors with a market capitalization of $2.6442 trillion as of May 2024.
Over the last 10 years, the index has experienced a significant increase of 18.28% from July 2014 to July 2024. The FTSE 100 Index is currently trading at 8169.18, which is below the all-time high of 8474.41 touched on May 15, 2024.
Conclusion
In conclusion, The stock market remains a dynamic and vital part of the global economy. It is a critical platform for companies to raise financing and for investors to potentially develop their assets. Despite its inherent volatility and vulnerability to economic, political, and social forces, the stock market has generally risen over time.
This highlights its importance in reflecting overall economic growth and innovation. However, careful investing requires detailed analysis, diversification, and a keen understanding of market forces to navigate its complexities and mitigate risks. What do you think about the world stock market returns? Let us know in the comments below
Written By Nikhil Naik
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