CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Stock market exchanges

Chapter 1: Intro

How does a company list? What are the biggest exchanges? Do they trade every day? Here’s our lowdown on stock market exchanges.

First, let’s look at the London Stock Exchange (LSE). Though founded in 1801, its roots actually stretch back much further to the coffee houses of 17th-century London. Today, it hosts the UK’s top 100 companies, called the FTSE 100. It also hosts the FTSE All-Share index, absorbing more than 900 public companies in total.

The LSE also operates the Alternative Investment Market (AIM) where it’s more affordable to list and where the rules, generally, are less onerous.

The biggest change for the LSE arrived on 27 October 1986 when share trading went electronic. This made commissions smaller and trading far more efficient: good news for the average investor, cutting fees and upping transparency; bad news for the City’s ‘old boy club’ and goodbye to many over-extended alcoholic lunches in the process.

Other well-known stock exchanges including the New York Stock Exchange (the biggest by market capitalisation) and the Tokyo Stock Exchange. Here’s a complete list of the most active stock markets today. 

Chapter 2: How does a company list?

Most companies ‘go public’ because they want to raise cash and create a market for their shares. In exchange, they give up some ownership of the business. This ‘public’ journey can also create positive – or negative – publicity en route.

A huge amount of time, not to mention expense, is invested in the flotation process, persuading investors of the robustness of the business. Corporate governance, lawyers, a comprehensive financial communication and investor relations strategy… The governance load is immense.

A well-prepared initial public offering (IPO) usually takes between 15-20 weeks. Companies can choose from a Premium Listing or a Standard Listing. The Premium Listing means you have to meet higher-than-average standards. A Standard Listing means it meets basic EU legislation while the compliance burden is lighter.  

Chapter 3: When are stock exchanges open for business?

Given world time zones, you’ll always find one that’s actively trading. But the London Stock Exchange – which itself became a public limited company in 2000 – trades from 8am to 4.30pm Monday to Friday.

Where it all started:

In 1698, Jonathan’s Coffee House in London’s Exchange Alley began issuing stock and commodity prices. It was there – among the smell of clay pipes, coffee, brothels and other “evil smells” – that the origins of the London Stock Exchange were born.

Test yourself

Which Stock Exchange is the biggest by market capitalisation?

Shanghai Stock Exchange (SSE)
Tokyo Stock Exchange (TSE)
New York Stock Exchange (NYSE)
London Stock Exchange (LSE)
Previous lesson

Who are the main market players?

Take the final quiz

Finance Quiz 13 questions

Looking for more?

computer
Education Hub

You’ll find everything you need to know here; from how-to guides to investment strategies.

figure
computer
Trading Guides

Our in-depth guides will provide you some insights into the wide variety of financial instruments, their unique features and how to use them in your trading portfolio.

Trading Glossary

1990

That's the number of terms in our glossary.


Do you know your CFDs from your IPOs or ETFs? Remove the mystery with our definitions glossary.

See all

Term of the day

Short Position

Looking for a short position definition? This is an investment or trading technique commonly used when an investor believes the value of a stock is about to drop. First, the investor borrows stock from a broker and then sells it on the market....

Read more
The most common word

Closing Price

Looking for a closing price definition? The closing price is a security’s trading price at the end of a day’s business in a financial market. This makes it the most recent valuation of a security until the next trading session. Where...

Read more

Still looking for a broker you can trust?

Join the 580.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading