Financial Markets are the types of the marketplace that offer a way for the sale and purchase of assets such as bonds, derivatives and foreign exchange.
Sometimes, the financial market is called by a different names like “Wall Street” and “Capital Market” but both are the same things with the same meanings. In the business, investors invest their money and they can go to the financial market to grow their business.
For instance, A bank where anyone opens his saving account, Bank can use their money to give loan to the other organizations or individuals and charge an interest fee. Depositors also earn and see their money grow through interest fee, here bank is working as a financial market that benefits both depositors and debtors.
If we talk about the types of financial Market.
There are four main types of financial Market. Stock market, bond market, commodities market and Derivatives market.
Overall performance of all these markets give ranking to the any country in the world.
Stock market trades shares of companies and their investors can make money when stock market perform well.
Another type is bond market which provides opportunities to the government and companies to save their money to finance different projects.
Next is commodities market, In this market traders buy and sell natural resources.
The last one is the derivatives market, this market is a contracting base market, whose value is based on market value.
When all these markets perform well in any country, those country achieve top ranking in the financial market of the world.
Here is a description of top five financial markets in the world.
1: United States of America (USA)
United States of America’s financial market is the largest financial market in the world.
In 2018, Insurance and finance support 7.4% or 1.5 trillion Us gross domestic products.
In the large high growth Sector, leadership translates into substantial activity and the creates the jobs directly and indirectly in the United States of America.
Financial services and products help to facilitate and finance the US agro-products and manufactured goods.
In 2017, In the finance and insurance sectors, America exported $114.5 and had a $40.8 billion surplus in financial insurance and insurance trade.
Both these sectors produce 6.3 millions jobs for US people at the end of 2018. US financial service offers significant benefits to financial firms.
This finance service provide great array to the financial products to allow the customers to manage, create wealth and manage their financial needs and goals.
2: China
China financial market is second most largest financial market and most vital economies in the world.
China experienced an incredible growth rate in last four decades but by reforms, China achieved remarkable economic growth which placed his economy at the second number of world top financial markets.
China surprised US in 2010, with $39.93 trillions in total assets. China re-established its stock market in 1990 and 3709 companies were listed with Shanghai and Shenzhen stock exchange.
China’s economic reforms are still in process in many directions which are promoting bond and equity markets.
In the latest survey, total market cap of financial Market of china is $12,214,466 while America total market cap is $40,719,661. because of this China received second position among the financial markets of the world.
3: Japan
Japan is considered third most largest financial marketplace in the world.
Because Japan growth rate in few decades was strong because of its strong export rate and strong stock exchange.
If we compare the financial market of Japan with China and America then we can conclude that Japan is third most largest financial market in the world because as compared to China and IS Japan market cap is $6,718,220.
while the US has $40,719,661 and China has $12,214,466 if we talk about the companies which are listed to the stock exchange US has 4266 companies and China has 4156 while on the Third number Japan has 3754 listed companies with his stock exchange market.
Because of this Japan is considered third most largest financial market in the world. If we talk about the economy of Japan, Japan has highly developed free-market economy.
Japan received third position in nominal GDP and fourth-largest in purchasing power.
Because of these figures, Japan’s economy is considered the third-largest financial market in the world. In 2019, survey Japan’s GDP crossed $5 trillions marks in the world.
Strong corporation between advanced technology and government put their economy at highest level and make japan as export Oriented economy.
4: Hong Kong
Hong Kong is considered fourth most largest financial market in the world. Hong Kong ranked fourth in the index of Global Financial Centre report.
Hong Kong received this position because of its financial schemes like cross border trading schemes which help its economy to raise.
If we talk about the economy of Hong Kong, its economy is highly developed and free-market economy because of its low taxation near about free port trade opportunity and we’ll establish an international financial marketplace.
The economy of Hong Kong is administrated under positive non interventionism and it depends on international trade because of this Hong Kong is considered almost favorite place to start a new company.
If we talk about comparison it’s GDP and ratio of market cap with other largest financial markets we see.
The ratio of its total market cap is $ 6,130,420 and a market cap of GDP is 1768.8 % and there are 2353 companies are registered with its stock exchange.
Because of these figures the economy and for financial marketplace Honk Kong is considered the fourth largest market.
5: United Kingdom (UK)
The United Kingdom is considered the fifth largest financial marketplace in the world.
According to the World Bank report, the United Kingdom is the fifth largest financial marketplace and economy in the world heaving GDP $2.7 trillion.
The UK is one of the major trade powers. No, matter how small is the UK geographically. The UK is also considered the second-largest economy in Europe.
If we talk about figure comparison with other financial marketplaces, we see that the total market cap of the UK is $3,570,894 while it’s total market cap GDP ratio is 116.6 and there are 1858 companies are registered with it’s stock exchange market.
Because of this, the United kingdom ranked fifth for the economy and for the financial marketplace.
