The free-market economy’s most crucial element is arguably the stock market. It seeks to level the playing field for all types of investors while supporting the democratization of access to trade and capital exchange. That is not to imply that large investors and expert money managers don’t enjoy some benefits. However, only a free-trade stock market provides arguably equal opportunities for common people.
To comprehend the impact that stock markets can have on the world economy, one does not necessarily need to be familiar with stock market statistics and data. When the globe entered the second-worst recession in history ten years ago, that became clear to everyone. The severity of the economy’s vulnerability was demonstrated during the Great Recession.
The fact that we may not be fully aware of all the impacts that crises will have on the course of history is more concerning. It’s critical to keep a close check on things since averting a crisis is always preferable to dealing with its effects, especially when the next one can be even more disastrous.
The purpose of this presentation of stock market statistics and facts is to compile all the most interesting data and recent information for you to read, share, and remember. The first step to a healthy economy is staying informed.
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Market capitalization
The total market capitalization exceeded pre-corona virus levels in November 2020, setting a new high of $95 trillion: The stock market has steadily increased over the past few months after experiencing a significant decline due to the pandemic. The prospect of a COVID-19 vaccination gave the stock market a healthy dose of confidence in November, leading to a modest increase in value. At that time, US election estimates predicted a Biden victory.
19 stock exchanges
19 stock exchanges in the world collectively have a market value of over $1 trillion: More than 87 percent of the market capitalization of the entire world was held by these stock exchanges in 2015. Together, Nasdaq and the New York Stock Exchange have a larger market capitalization than all other exchanges on the list put together. Alphabet and Amazon, two US businesses, entered the elusive $1 trillion club in 2020, but both of them left before the market ended.
September effect
One of the most intriguing financial phenomena is the September Effect. Since 1950, the S&P 500 and the Dow Jones have experienced a modest decrease each September on average. Since Nasdaq began operations in 1971, this month of the year has also seen a modest decline in its composite index. Large market falls in September do not occur as frequently as they did before 1990 due to the September Effect, which has started to fade in recent years. One explanation for this is because, in anticipation of the September Effect, investors started selling their equities in August.
Stock market crashes
Since two of the worst stock market crashes in history—in the years 1929 and 1987—happened in this month, October is regarded as a cursed month. In October 1929, “Black Tuesday,” the Dow Jones dropped by about 25%. While the Dow Jones plunged 22% on Black Monday in October 1987.
Dutch East India Company
The first international firm was the Dutch East India Company, founded in 1602. It was the first business to issue stocks and is the forefather of all modern businesses. Because the directors of the corporation controlled it, shareholders had little power. Shareholders, however, received a generous return. Over the first half of the 17th century, the average yearly dividend was 16 percent.
Foreign equity
Ten percent or so of US families have foreign equity: One of the most positive stock trading statistics is that American households have been diversifying their portfolios more over the past ten years, according to US stock market trends. The percentage of global stock that Americans own has been steadily increasing since the Great Recession ended in 2008, with only minor setbacks. This percentage of the global equity market has increased by about 15% over the last ten years, thanks to the economic recovery and less expensive and constrained foreign investing.
Corrections in the stock market
Corrections in the stock market often occur every two years: A market loss of more than 10% but less than 20% is referred to as a stock market correction. These drops are substantial but fall just short of the point at which a bear market begins. Market corrections used to occur around once a year before the turn of the century, but they are now less common after World War II. The S&P 500 has experienced 13 corrections since the start of 1980. The stock market value percentage declines by 14.8% on average throughout the average length of 92 days. Only five times over that time have decreases exceeded 20 percent.
Berkshire Hathaway
Berkshire Hathaway, owned by Warren Buffet, has the most expensive stock in the world: The majority of industry experts only concur on the rarest investment numbers. One of them is the likelihood that Warren Buffet is history’s best investor. It seems appropriate that his company, Berkshire Hathaway, owns the most valuable stock in the world.
Some of the most well-known businesses in America are owned by this corporate juggernaut, including Duracell, Geico, and Dairy Queen. Additionally, it holds sizable stakes in major corporations like American Express and Coca-Cola. The business never underwent a stock split, which means that the value of a single share was never diminished. This is what makes Berkshire stock worth $320,250 (October 2020) per share.
New York Stock Exchange
In 1943, the New York Stock Exchange hired its first female employee due to a lack of male employees following World War II: The NYSE, like the earlier structure that hosted the exchange from 1792 until 1903, was only accessible to men during the first part of the 20th century.
During World War II, however, the exchange was short of clerks and runners. As a result, women were temporarily permitted to operate on the trading floor at the NYSE for the first time in the market’s long history. Up until 1947, this existed. Women were once again prohibited from the exchange until 1965 when Muriel “Mickie” Siebert purchased a seat and rose to the position of “First Lady of Wall Street.” As the sole female employee at the NYSE for the following ten years, Siebert gained notoriety and had a room on the seventh floor named in her honor.
Not immune to the appeal
The stock market is currently more than 80% automated: Stock markets are most definitely not immune to the appeal and benefits of machine-run algorithm trading, which is transforming many industries. Because of this, figures on the US stock market reveal that machines already handle the vast majority of trading. To the dismay of many analysts and investors, computers employ sophisticated mathematical models to quickly make trading decisions online. This results in a market that is more concerned with short-term fluctuations and sell-offs than with a long-term outlook.
