Fascinating Stock Market Facts
If you’ve been wondering how the stock market works, and you’re interested in investing, it’s worth educating yourself on a few fascinating stock market facts. The first is the fact that the oldest stock exchange in the US is located in Philadelphia, Pennsylvania. Another fact is that the average investor is most likely to own stocks through retirement accounts and mutual funds.
Global stock market cap is over $95 trillion
A global stock market cap of over 95 trillion dollars is a pretty impressive feat. This is a bit more than the world’s debt, which is about $277 trillion. The biggest countries in terms of equities are the US, China, and Japan, respectively.
However, the stock market has been in an upwards trend for some time. It has seen a major surge in the last few months, particularly in November, following the U.S. presidential election.
One of the perks of having a large national economy is a relatively low cost of investing in foreign markets. With the proliferation of online stock trading platforms, this is now more true than ever.
The oldest stock exchange in the US is in Philadelphia
The oldest stock exchange in the US is located in Philadelphia, Pennsylvania. This financial hub has played a major role in the development of the United States as a nation. From its founding in 1790 to the present day, the Philadelphia Stock Exchange has been an important player in the financial world. Its legacy has been the creation of new financial products and the establishment of many financial institutions.
Originally, the Stock Exchange specialized in dealing with government paper. However, it also listed stocks and index options. In addition, it provided funds to finance public works in Philadelphia. These funds were needed to develop the industrial and commercial base of the new nation.
The largest stock exchange by IPO proceeds is Nasdaq
One of the most important statistics for the Nasdaq stock exchange is its IPOs. IPOs are companies that sell large amounts of stock at a low price to raise money. This process gives the company a chance to grow and expand. The IPO market has been strong through 2020 and is expected to continue in 2021.
Among the top ten IPOs for the second quarter were TPG Inc. and Klarna. Both raised a substantial amount of funding.
The largest IPO of the quarter was Rivian Automotive. It raised $13.7 billion.
FactSet data indicates that 57 IPOs were filed for the first quarter of 2021. However, the total gross proceeds were down 87.6% from the fourth quarter of 2021.
The average stock owner is most likely to be invested through mutual funds and retirement accounts
There are several ways to invest in the stock market. The main three are individual stocks, index funds, and mutual funds. Each has its own advantages and disadvantages. In general, stock market investments have proven to be the most reliable way to build long-term wealth.
Many investors use stock mutual funds to diversify their holdings. This way, they can purchase shares in a variety of industries. While this means investing in many companies, it also reduces risk.
Another advantage of mutual funds is that they allow investors to make additional investments. It is possible to switch into other types of investments, such as bonds, as the investor nears retirement.
The poorest performing month in the stock market is September
September is one of the most volatile months in the stock market. That doesn’t mean it’s necessarily a bad month, though. Over the past sixty-odd years, the S&P 500 has delivered positive returns about one-third of the time in September, according to data compiled by Bloomberg.
This year, the S&P has seen its worst decline since 2008, and its lowest level in more than two years. It’s also been in the red for the first three quarters of the year. While many investors expect the market to turn around soon, they also fret over a tighter monetary policy that could weigh on stocks for at least another month.
The biggest stock market crashes have happened in this millennium
It is difficult to accurately predict when a stock market crash is going to happen, but there are some signs to look out for. Markets tend to fall for short periods of time, but they can last for months or even years. If you are an investor, it is best to prepare for any possible decline.
The first major market crash happened in October 1987. While the event was not as dramatic as the 1929 crash, it was still significant. This crash prompted the government to step in and help financial institutions recover.
However, the biggest stock market crash of the millennium took place in 2008. A pandemic known as Novel COVID-19 caused widespread damage in the global economy.