Top 25 facts about the stock market in 2024

Top 25 facts about the stock market Research

Ten years ago, it became clear that the world had plunged into the second most devastating recession in history. The global crisis that began in 2008 is a testament to how fragile the global economy can be.

Humanity is incapable of predicting the consequences of a global crisis. Therefore, it is important to pay close attention to what’s happening: it is easier to prevent a crisis than to deal with its aftermath.

We have collected for you the most interesting facts about the stock market. You will find out which stock exchanges are popular in 2024, how much capital is invested in exchanges, when the first stock exchange was founded, and many other important facts.

To learn more about stocks, exchanges, currencies, and cryptocurrencies, read other articles prepared by the TradingWebsite team: stock market statistics, Forex statistics, and cryptocurrency statistics.

Contents

Key Facts about the Stock Market in 2024:

  • The U.S. owns 59.9% of the world stock market value.
  • In 2018, the capitalization of the global market decreased by 14.9% compared to 2019.
  • In 2022, the capitalization of the international stock market reached $104 trillion.
  • Stock market prices usually fall in September.
  • 10% of American investors invest capital in companies from various countries around the world.
  • The U.S. owns 59.9% of the world’s capital share.
  • Apple is the most expensive company in the world — market capitalization is $2.35 trillion as of December 2022.
  • The most trades on the stock exchange are concluded in the information technology sector.
  • The first stock exchange was founded in 1602 in Amsterdam.
  • The return on the S&P 500 stock index is 11.8% per annum.
  • Women were not admitted to trading on the stock exchange until 1965.

Facts about the Stock Market

1. In September 2022, the capitalization of the international stock market reached a record $104 trillion

The capitalization of the global stock market still exceeds $100 trillion, which is much higher than the 2020 level, even though the market is somewhat bearish now.

Interestingly, financial analysts expected a global economic decline from 5.7% in 2021 to 4.1% in 2022, but now it seems that these estimates were overly pessimistic, as in 2022 humanity faced a global economic decline of only 2.5%.

Data source: TradingHours.com.

2. The capitalization of the five largest stock markets in the world is over $60 trillion

Here are the TOP-5 most expensive stock exchanges in the world:

  • New York Stock Exchange — capitalization of $23.02 trillion
  • Nasdaq Stock Exchange — capitalization of $19.5 trillion
  • Shanghai Stock Exchange — capitalization of $7.05 trillion
  • Tokyo Stock Exchange — capitalization of $5.55 trillion
  • Shenzhen Stock Exchange — capitalization of $5.16 trillion.

Interestingly, the total capitalization of the American stock exchanges NYSE and Nasdaq is $42.52 trillion.

Data source: TradingHours.com.

3. Over 27 years, US investors with average income lost more than half of their shares

In 1989, American investors with an average income owned 15% of all shares on the US stock market, but by 2016 their share had reduced to 5%.

Interestingly, during the same period, the share of stocks owned by affluent Americans increased dramatically — over 27 years, their share in the US stock market increased from 0.1% to 5%.

Data source: A Wealth of Common, Sense.

4. About 10% of American investors buy shares of companies in different countries

After the onset of the global financial crisis, which occurred in 2008, the share of international shares owned by American investors increased to almost 10%.

Data source: A Wealth of Common, Sense.

5. A 5-10% drop in the stock market leads to a recovery of prices within one month

Typically, market prices recover within four months if the stock market falls by 10-20%. If the stock market falls by 20-40%, then the recovery of prices takes 15 months.

However, there are exceptions. For example, after the crash of the stock exchange in 2008, the international financial market took almost 13 years (151 months) to recover.

Data source: Guggenheim Investments,Spence.

6. The eleven-year bullish trend in the stock market ended due to the coronavirus pandemic in 2020

A typical bull trend in the stock market lasts about 4.5 years. The last price increase on the US stock exchange was the longest in history. This happened thanks to record low interest rates and record high corporate profits, mostly due to the growth of the US technology industry.

Companies like Apple, Google, and Amazon, in 2024 are the most expensive corporations in the world, their ascent, helped the stock market to quadruple its capitalization from 2008.

The bull market on the stock exchange began in 2009 and ended only in March 2020. The eleven-year bull trend ended abruptly due to the COVID-19 pandemic, but after 33 days, the price growth in the market resumed.

Data source: Yardeni, Investopedia.

7. The U.S. owns 59.9% of the world’s capital shares

In 2022, the value of the US stock market reached 59.9% of the global market. This happened as a result of the strengthening of the dollar and the rise of American stocks, which began in 2005. Another reason why the U.S. increased its share in the global capital market: a sustained decrease in the capitalization of most international stock markets that began in 2008.

Interestingly, in 2016, the U.S.’s share of the global capital market was 36.53%, while China owned 10.21% of the shares.

Data source: Seeking Alpha, Statista.

8. A price correction happens in the stock market once every two years

A stock market correction is typically a drop in the value of assets by more than 10% but less than 20%. Although major declines occurred about once a year at the beginning of the 20th century, after 1945, corrections in the stock market began to happen less frequently.

The average duration of a stock market correction is 188 days, with stock values typically falling no more than 21.7%.

The last two corrections in the stock market, in 2020 and 2022, were bearish.

Data source: Yardeni Research.

9. Apple is the most valuable company in the world (market value over 2.35 trillion dollars)

In August 2020, Apple became the first publicly traded company with a market capitalization of over 2 trillion dollars. Also, Apple was the first American company to surpass the 1 trillion dollar mark, and then doubled its value within two years.

But that’s not all Apple’s records. On January 3, 2022, Apple became the first company to reach a capitalization of 3 trillion dollars.

Here are another five companies with very high market values in the stock market as of December 2022:

  • Saudi Aramco — 1.89 trillion dollars
  • Microsoft — 1.9 trillion dollars
  • Alphabet (Google’s founder) — 1.3 trillion dollars
  • Amazon — 960 billion dollars Berkshire
  • Hathaway — 696 billion dollars.

Data source: Macrotrends, CNBC.

10. Most transactions in the U.S. stock market are in the information technology sector

Here are the TOP-5 sectors of the U.S. stock market with the highest market capitalization in 2022:

Information Technology — 28.1%

  • Healthcare — 11.8%
  • Consumer Sector — 11.8%
  • Financial Sector — 11.5%
  • Communication Technology — 9.6%.

Data source: The Balance.

11. More than 80% of transactions in the U.S. stock market are automated

Most transactions (over 80%) on the U.S. stock market are carried out using algorithmic trading.

Trading takes place using the latest high-speed computers, which decide to buy or sell a financial asset based on complex mathematical models.

Data source: CNBC.

12. 22% of transactions are made off-exchange

According to a 2020 SEC (Securities and Exchange Commission) report on algorithmic trading, about 22% of all stock trading took place off the stock market.

Data source: US SEC.

13. Investors purchased a record $3 trillion worth of stocks prior to the coronavirus pandemic in 2020

In 2020, the total value of the global stock market increased by more than $13 trillion.

From 2015 to 2019, investors spent a record $3 trillion on stock purchases. However, in the first quarter of 2020, the volume of stock transactions sharply decreased, returning to the usual transaction volume of $200 billion. This happened due to the financial crisis caused by the COVID-19 pandemic.

Data source: Siblis Research.

14. The U.S. stock market grows after presidential elections

Stock market statistics for the last two centuries show that the value of the S&P 500 index begins to rise immediately after the U.S. midterm elections and in the third year of the president’s term. For example, the S&P 500 index increased in the first year of Bush, Obama, and Trump’s terms. This fact is known as the «Presidential Election Cycle Theory.»

The average yield of the S&P 500 stock index is 5.2% in the first year of the U.S. president’s term, 4.8% in the second year, 12.8% in the third year, and 5.7% in the fourth year.

These data can be explained by low volatility in the stock market, which usually occurs in the run-up to the U.S. president’s midterm elections — investors become more cautious during this time.

Data source: Investopedia.

15. Trading on the New York Stock Exchange starts with the ringing of the bell at 9:30 a.m.

The New York Stock Exchange rings an actual bell at 9:30 a.m. before the start of trading. This tradition has been observed since 1903, before which trading was opened with a strike on a Chinese gong.

Data source: Investopedia.

16. The most expensive stock in the world is Berkshire Hathaway by Warren Buffett

The most expensive stocks in the world belong to Berkshire Hathaway, which is managed by American billionaire Warren Buffett.

The market value of Berkshire Hathaway on the stock market in December 2022 was 696 billion dollars.

Interestingly, Berkshire Hathaway invests capital in some large American companies such as Coca-Cola, American Express, Dairy Queen, Geico, Duracell, and others.

Berkshire Hathaway has never split its stock, meaning it has never devalued the market value of a single share.

Data source: Investopedia.

17. During a stock market crash, trading on the U.S. stock exchange is automatically halted

In the U.S. stock market, during significant price fluctuations, an automatic circuit breaker is triggered, which halts trading on the exchange. Halting trading is necessary to prevent a stock market crash and give investors time to reassess current positions.

Trading on the U.S. stock market is halted in three cases:

  • Level 1: The S&P 500 index drops 7% or more compared to the previous day’s closing price. In this case, trading is suspended for 15 minutes.
  • Level 2: The S&P 500 index drops 13% or more compared to the previous day’s closing price. In this case, trading is also suspended for 15 minutes.
  • Level 3: The S&P 500 index drops 20% or more compared to the previous day’s closing price. In this case, trading is halted for the rest of the day.

This protection system is used by the New York Stock Exchange (NYSE) and the Nasdaq stock market. Similar systems are employed on stock exchanges in Japan, China, and the Philippines.

The stock market was first closed before the end of a trading session in 1865 when President Abraham Lincoln was assassinated. The last time trading on the exchange was halted was in March 2020 due to a market crash during the COVID-19 pandemic.

Data source: NYSE.

18. The first stock exchange was founded in 1602 in Amsterdam

Until the 17th century, there were no official stock exchanges, although Belgium, Venice, and some other countries traded loans and debt obligations. The first modern stock exchange appeared in the small city of Amsterdam in 1602.

The first stocks on the stock market were issued by the Dutch East India Company, which was one of the richest and most powerful corporations in the world from the 17th to the 19th centuries.

Data source: Columbia University Press.

19. The average return of the S&P 500 stock index is about 11.8% per year

The average return of the S&P 500 stock index from 1957 to 2022 was 11.8% per year. Despite its stability, the index has often experienced years when the return was significantly higher or lower than the standard return rates.

Data source: Investopedia.

20. The highest stock market return was observed in Australia from 1900 to 2009

High returns on the Australian stock market are also attributed to China’s recent rise. The Asian giant is Australia’s largest trading partner in terms of both imports and exports, while Australia ranks as China’s sixth-largest trading partner.

Australia has an incredible abundance of valuable metals, coal, oil, natural gas, and is also one of the world’s largest exporters of beef.

The mining sector is so important to Australia that the two largest stocks in the Australian stock index, Standard & Poor’s ASX 200, are the shares of the major mining companies BHP and Rio Tinto.

Data sources: Market Watch, interactive investor, The Department of Foreign Affairs and Trade.

21. Women were not allowed to trade on the New York Stock Exchange until 1965.

In the first half of the 20th century, only men traded on the New York Stock Exchange. However, during World War II, there was a shortage of clerks and runners (exchange employees who relayed transaction information to traders). It was then, for the first time in history, that women appeared on the NYSE, replacing male employees until 1947.

For the next eighteen years, women were once again excluded from trading on the exchange. Everything changed in 1965 when a woman named Muriel «Mickey» Siebert bought a seat on the exchange and became the «First Lady of Wall Street.» For the next decade, Siebert was the only woman working on the New York Stock Exchange, earning recognition from famous traders and having a room on the seventh floor named in her honor.

Data source: CR Fashion Book.

Please provide us with new facts about the stock market.

The stock market provides free access to trading and capital exchange for large companies and individual investors. To understand the impact of the stock market on the global economy, you don’t need to read complex reports from financial analysts.

Those were all the interesting facts about the stock market that we were able to discover. Please let us know in the comments which one you liked the most. Honestly, we were puzzled by the exclusion of women from the New York Stock Exchange for so long—thanks to Muriel «Mickey» Siebert for her courage!

If you want to add new facts about the exchange to the article, please let us know in the comments below. Read more research from TradingWebsite on our financial blog.

What is the stock market?

The stock market is a complex and dynamic system where individuals and organizations buy and sell shares, bonds, and other financial instruments.

Features of the stock market

  • Ownership: By purchasing shares in a company, investors become partial owners and receive a portion of its profits (dividends) as well as the right to participate in important decisions.
  • Financing: Companies issue shares and bonds to raise funds for business growth.
  • Investment: Individuals invest in financial instruments to increase their wealth, earning income from capital appreciation or dividends.
  • Economic indicator: The stock market reflects the state of the economy, responding to economic events and investor sentiment.

Types of financial instruments

  • Shares: Represent ownership in a company and entitle the holder to dividends and voting rights.
  • Bonds: Debt instruments that pay interest to the holder and are repaid at maturity.ETFs (Exchange-Traded Funds): Baskets of securities that track a specific index or market sector.
  • Mutual Funds: Professionally managed portfolios of securities available to investors through the purchase of shares.

Exchanges and Brokers: An organized platform where transactions with securities take place, with brokers acting as intermediaries to help investors buy and sell on the exchange.

Factors Affecting the Market: Economic indicators such as GDP, inflation, and interest rates, as well as corporate events like profits, mergers, and acquisitions, and world events like political events and natural disasters, all play a role in influencing the market. Market psychology, including investor sentiment and speculation, also has an impact.

Securities Analysis: Fundamental analysis, which involves evaluating a company’s financial performance and development prospects, and technical analysis, which studies price charts and indicators to predict market movements, are two methods used to analyze securities.

Investment Strategies: Investors can choose from various strategies, such as growth, value, income, or sector-specific investments, depending on their goals and risk tolerance.Long-term investment: Buying securities for a significant period of time in order to benefit from their growth over time.

Short-term investment strategy: Buying and selling securities within a short time frame to generate profits based on speculation.

Dividend strategy: Investing in companies that pay regular dividends to shareholders.

Growth strategy: Investing in companies with strong growth potential.

Risks

  • Market risk: A decrease in the value of investments due to general market volatility.
  • Credit risk: The possibility that a company will default on its debt obligations.
  • Political risk: Changes in the political or economic climate of a country that may affect investments.
Mark Rubezhny

Senior Staff Writer at TradingWebsite, specializing in the development of forex websites and marketing. Mark has extensive experience in creating web projects related to trading in financial markets, including websites, widgets, trader cabinets, and integration with MT4.