Through this article, we will see how the US stock market is and why America is considered the most powerful country in the world. America’s two important are, in which NYSE and NASDAQ both have a capital market of 25 trillion and 20 trillion US dollars, which is much bigger than all the stock markets in the world.
The market capital of a company like Apple is 3 trillion US dollars, which is much bigger than the economy of any country. If we think that can we make money in American stock market? So its facilities have been developed than ever before, the additional tax that we had to pay earlier is now negligible, so we can sit in India and invest our money in the US stock market.
We will try to find out what additional benefits we can get from investing money in a US company. It sounds very easy to recite, but sitting in India, studying American companies and investing money is very difficult and skillful work, it requires a lot of hard work, but this opportunity is given to us today that we can invest in the American stock market.
US Stock Market –
- 9.30am to 4 . 00 pm i.e. 7. 30 pm to 1. 30 pm (Indian Time)
NYSE, this stock market is the world’s largest stock market, if we look at the market capital, then NASDAQ is this stock market. This stock market we can get an idea of how much influence the US stock market has on the world’s stock market. Listed companies on the NYSE, most of these companies other than America’s technology are listed here, which are called blue chip companies.
On the NASDAQ, we get to see all the tech companies listed, and one feature is seen in the US stock market and that the companies which are listed on NSE in India are listed on BSE but it is not so in America. A company that is listed on NASDAQ is not listed on NYSE, due to which the market capital of both the stock exchanges is different.
American companies, mostly do their business internationally, that’s why we get to see many American companies in the American stock market, especially on NYSE and NASDAQ, but in India, we only get to see companies registered in India in the stock market.
History of America Stock Market –
Although, like the rest of the world, America’s discovery is quite new, but today we know it as the most developed country. We get to see the first US stock market in 1790 in Philadelphia. NYSE This stock market was established in 1792, which is in the main city of New York City, USA.
America’s stock market has seen this journey from the traditional stock market to today’s digital stock market and even today the NYSE has kept some trading in the traditional way, which is as a heritage of history. America became the first country in the world which has given a platform to companies of all countries to raise money through Nasdaq.
Sitting in any corner of the world, we can invest money in America’s stock market through digital technology. America has done lot of development in the technology field, as a result of which tech companies like Google, Apple is keeping their influence all over the world and due to this, America’s stock market is about 45 trillion US dollars, which is not so much even with all the stock markets of the whole world. It is possible
Structure of US Stock Market –
NYSE This stock exchange is considered to be America’s oldest and largest stock exchange, in which America’s blue-chip companies are listed. In the Nasdaq, we see most tech companies registered, in which more than 2500 companies are listed and companies from any country in the world can be registered on this stock exchange, in a way, international companies are listed here.
The NYSE Stock Exchange has 3300 US companies listed on it and it is considered to be the second sector company of America, due to which the market capital of this stock exchange is $ 25 trillion, it is considered to be the largest stock exchange in the world. The market capital of Nasdaq is $ 20 trillion and both these stock exchange listed companies are registered on the same stock exchange only. In India we see that the same companies are listed in BSE and NSE.
S&P 500 Stock Exchange This is an index designed for the big tech companies of America and companies in the rest of the sector. Here we have to keep in mind the difference between stock market, stock exchange and indices. Nasdaq is a stock exchange as well as an index so we should always keep this structure in mind.
Major US stock exchanges
- NASDAQ 100
America’s main indexes –
- DOW JONES
- S&P 500
- RUSSELL 2000
Regulatory Authority of US Stock Market –
The Securities-Exchange Commission (SEC) This is the US stock market regulating body that monitors all illegal activities. The Securities Exchange Act 1934 The SEC has been established under this law, and it is an independent institution. This organization does this work to make rules and implement all the activities happening in the stock market of America.
As a worldwide financial advisor, this organization acts as financial advice to stock exchanges and financial institutions around the world. In India, we see that SEBI, this regulatory authority, regulates the entire stock market. The fundamental difference between the stock market of India and the US is that international companies are listed on the US stock market.
Only companies registered in India under the Companies Act are listed on the stock exchange of India, for any foreign company to be listed in India, it is mandatory to be registered in India. There is no such provision in the US that any company in the world is registered in the NASDAQ index. So the work of SEC is slightly increased from SEBI of India and due to international trading we always have to make some different rules to SEC to control the US stock market.
Features of US Share Market
- If the market falls, then the circuit filters 7 -13 -20 percent this structure and finally the market is closed for that day.
- In India, we buy according to the share, but in the US stock market, we can buy a small part of any stock.
- The Securities Exchange Commission is the independent body that regulates the US stock market.
- There are 3300 companies listed on the Nasdaq, which lists international companies from around the world, and mainly tech companies are listed on the Nasdaq Index.
- Nasdaq is also this stock market and Nasdaq 100 is also an important index of this stock exchange.
- There are mainly 2800 companies listed in NYSE which are blue-chip companies of America listed.
- Listed companies in NYSE and Nasdaq listed companies are different, all companies are listed equally on both BSE and NSE stock market in India.
- DOW JONES This index has been created by becoming the most important index of the US stock market, becoming the Top 30 of Nasdaq and Top 30 of NYSE.
- S&P 500 This index is made up of only companies registered in the United States of America.
Features of NASDAQ –
- Nasdaq is also the stock exchange of America and is also an important index.
- The Nasdaq Index comprises 2500 companies based on the market capitalization of companies around the world.
- Nasdaq Stock Exchange was established in 1971 in which mainly tech companies are listed.
- Companies listed on the Nasdaq Stock Exchange are not listed on the NYSE Stock Exchange.
- Nasdaq Stock Exchange It became the world’s first computer-less stock exchange in electronic form.
- Nasdaq Composite This is the largest company in the tech sector with the most market capital.
- The Nasdaq Stock Exchange has a market capitalization of US$ 20 trillion and has 3,300 companies listed on it.
Features of NYSE –
- It is said to be the world’s oldest and the world’s largest stock market, according to the market capital, whose market capital is 30 trillion US dollars.
- America’s blue chip companies are listed on this stock market, which contains shares of all industrial sectors.
- NYSE listed companies are not listed on Nasdaq, they are listed only on NYSE registered companies.
- Trading in electronic form was first introduced on the NYSE in 2007, but even today traditional trading has been kept in some places, where trading is done in actual.
- Indices like DOWJONE, NASDAQ, S&P 500 and the RUSSELL 2000 are both listed on important stock markets.
- US Share Market & Indian Share Market / US Share Market & Indian Share Market –
- In America, mainly two stock markets are bought and sold, in which the main ones are NYSE and Nasdaq, similarly in India we see that all transactions are done on BSE and NSE.
- In America, the shares or companies listed on the NYSE and Nasdaq are different, whereas in India there is the same company on both the stock exchanges.
- We can take at least one share in the stock market of India, we can take a small part of any share in the US stock market.
- By investing in India, we get dividends and increased share prices, it is our profit, but if we invest in America, then the increased price of extra dollars is our profit.
- The stock market of America is very large as compared to India and the potential of those companies to grow is also very high because they are international companies.
- The capital value of a technology base company like Apple is equal to the full economy of India, from this you can get an idea of the US stock market.
- The NYSE stock exchange has a market value of USD 25 trillion as of 2018, while the stock market of India is USD 3 trillion.
- The market value of the Nasdaq is 20 trillion US dollars, the same BSE and NSE are listed by the same companies.
- The Nasdaq index of America may list foreign companies which are international companies, this facility has not been given in India till now or this facility is not there in any other market of the world.
- Sitting in India, we can invest money in the stock market of America, such a provision is prohibited for foreign investors to invest directly in the stock market of India.
How to Invest in the US Stock Market –
Before the 1990s, investing in the stock market of America was a very complicated or impossible task, but due to globalization and through international treaties, many facilities have been created. The provisions of double tax have been removed and you can trade directly in the stock market of America through the online portal, just some fees have to be spent which was very expensive earlier.
To invest in US stock market from India, some agency has been appointed which connects us with the US broker company and provides that facility to us in exchange for some fee. For this, you can do this process online by some special banks, in which you are provided with the facility of accounts of banks like Kotak Bank and ICICI Bank.
Demat and Bank Account: This facility is available for free of cost or some fees, according to different agencies, we can open our account by checking it thoroughly and converting the rupee into dollars, the initial deposit is taken from which We can start our trading. Many companies like IND MONEY and Capital.com provide such services.
Critical Analysis of US Stock Market –
Investing in the US stock market can be very risky because in case of some problem in the economic matter, there is no such solid system of international law which belongs to any country, so the chances of getting justice are very difficult. We see that we have very little knowledge to invest in the stock market of India.
On this it can be quite a difficult task to study the stocks in a very big stock market like USA. The most important thing is that the US stock market is already very expensive and investing in it generally means that as much money as our entire portfolio in India is not enough for us to buy one share in the US stock market.
Fundamental information of the company is necessary for long-term investment, we can take it very easily in India, but while investing in an international company, it is very difficult to get the right information about that company. In India, we get to see the economic inequality on a large scale, whose whole life goes to struggle for everyday life, investing is a far-fetched thing, that’s why most people invest in America from India, who are already very rich. Happens.
In this way, we have tried to study the stock market of America, in which we have seen how the American stock market works and we have tried to compare it with the stock market of India. The main reason why the American company is successful is that a lot of money is spent on education and revision.
Talking about us, we do not invest that much money on education and modification so that our company can compete with other companies in the international market. The level of education is necessary for companies like Apple, Google to be built in India, on the same economic level, India has to change our basic structure to develop more than America.
America’s stock market is so big that the rest of the world’s stock market seems very small in front of it, in technology, we see many companies of America that rule the world. From a political point of view, that private business is promoted a lot and bankruptcy is not a crime, for this protection laws are made. In this way, we have tried to give information in the context of the US stock market and if you want to give some suggestions to us, then definitely write to us …