US Markets vs New Zealand or Australian Stock Exchanges
Q. Why do I live in
A. Market capitalization. Market Capitalization is the total dollar value of all outstanding shares. It is calculated by multiplying the current market price by the number of shares. Consider the market capitalization figures in the graph below:
Exchange | Market Cap |
(USD Millions) | |
38,741.2 | |
Australian Stock Exchange | 805,584.3 |
American Stock Exchange | 86,288.0 |
Nasdaq | 3,603,984.9 |
NYSE | 13,310,591.6 |
*At 31 December 2005
The entire market capitalization of the
I started out trading the
Some investors would rather buy local companies; because they are the companies they know, and are close to home. Using my trading methodology, half the time I don’t even know the name of the company; all I know is it's ticker, or symbol. The company’s name, what it does, or where it is based is not important. Instead, what is important is the chart setup, and then the explosive move that follows. If you do like to know all about the company whose shares you are buying though, all the news and information can be easily found on the internet – see useful websites.
The huge difference in brokerage fees and the tighter bid/ask spreads are the other two main reasons I trade the
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