Tag Archives | market capitalization

Hong Kong Stock Exchange (HKEX)

Hong Kong Stock Exchange (HKEX) Definition

The Hong Kong Stock Exchange or HKEX is the second largest exchange in terms of market capitalization in Asia behind the Tokyo Stock Exchange. It has around 1,200 listed companies and a market cap of $2.7 trillion.

Hong Kong Stock Exchange (HKEX) Meaning

The Hong Kong Stock Exchange was established in 1891. Like most exchanges these days the HKEX has adopted computer trading which accounts for the majority of the volume. The Hong Kong Exchange is different from other Chinese Exchanges, like the Shanghai Stock Exchange, because the Chinese Government does not regulate it. This makes the Hong Kong exchange market different in that it is a more free market like others around the world. The HKEX also has one of the primary indexes in Asia which is the Hang Seng Index. This index is a capitalization weighted index. To make up the index, take the top 43 companies of Hong Kong.

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hong kong stock exchange

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hong kong stock exchange

See Also:

Tokyo Stock Exchange (TSE)
Shanghai Stock Exchange (SSE)
BM&FBovespa
Bombay Stock Exchange (BSE)
National Stock Exchange of India (NSE)

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Euronext Definition

See Also:
New York Stock Exchange (NYSE)
London Stock Exchange (LSE)
Frankfurt Stock Exchange (FSE)
Shanghai Stock Exchange (SSE)

Euronext Definition

What is the Euronext definition? The Euronext exchange was formed in the year 2000 through a merger between the Amsterdam, Paris, and Brussels exchanges. In addition, it is one of the larger exchanges in Europe in terms of trading volume and market capitalization.

Euronext Meaning

The Euronext market is traded using an electronic system called the New Quotation System. The great thing about this electronic system is that it allows an investor to invest without even contacting his/her broker. Simply submit the order via the internet. If the system does not execute the order immediately, then submit it into the limit order book. Euronext currently has agreements with several other European markets, and they have become known as cross-trade agreements. In 2007, Euronext merged with the NYSE group. As a result, many around the world know it as the NYSE-Euronext. It is the first global stock exchange. The most commonly used Euronext index is the CAC 40. In addition, the CAC 40 is the 40 most significant companies in a capitalization weighted index of the 100 largest companies within the Euronext.

euronext definition

 

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Capitalization

See Also:
Company Life Cycle
Market Positioning
Insider Trading
Dispersion
Adjusted Present Value (APV) Method of Valuation
Capitalization Rate

Capitalization in Finance

In finance, capitalization in finance is the sum of a company’s debt and equity. It represents the capital invested in the company, including bonds and stocks.

Capitalization can also mean market capitalization. Market capitalization is the value of a company’s outstanding shares of stock. It also represents the value of the firm according to investors’ perceptions. It is equal to the number of shares outstanding multiplied by the share price.

Market Capitalization = Shares Outstanding x Share Price


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Capitalization in Accounting

In accounting, capitalization refers to recording costs as assets on the balance sheet instead of as expenses on the income statement. A company may record the purchase price of an asset, as well as the asset’s acquisition costs, such as transportation and setup, as assets on the balance sheet.

Capitalization in accounting also refers to transferring an off-balance-sheet operating lease onto the balance sheet and recording it as a capital lease. To do this, calculate the present value of the future operating lease payments and record the amount on the balance sheet as an asset with a corresponding liability.

Capitalization of Cost

For example, a manufacturing company may record the cost of raw materials, direct labor, and overhead as assets – where labor and overhead would be capitalized costs. The assets (including the capitalized costs) are then transferred to the income statement as costs of goods sold as the underlying assets are sold to customers. Capitalizing costs increases the value of total assets and equity on the balance sheet, as well as net income on the income statement.

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Capitalization in Finance, Capitalization in Accounting

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Capitalization in Finance, Capitalization in Accounting

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Australian Securities Exchange (ASX)

Australian Securities Exchange (ASX) Definition

In 1861, the Australian Securities Exchange or the ASX was established. Furthermore, it’s current form is the result of a merger between the Australian Stock Exchange and the Sydney Futures Exchange in 2006. Currently, the ASX exchange is the 9th largest stock exchange in the world in terms of both trading volume and market capitalization.

Australian Securities Exchange (ASX) Meaning

Three very large components make up the Australian Securities Exchange. Those components perform the majority of trading on the ASX. The three components include the following:

  • Mining
  • Retail
  • Financial institutions

Like most exchanges the ASX trading is all electronic. The main headquarters are in Sydney. But there are several locations in the six respective state capitals. The ASX index is the S&P/ASX 200. Furthermore, the S&P/ASX 200 is a market capitalization weighted index which is float adjusted for the top 200 stocks.

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Australian Securities Exchange

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Australian Securities Exchange

See Also:
Hong Kong Stock Exchange (HKEX)
Singapore Stock Exchange (SGX)
Tokyo Stock Exchange (TSE)
National Stock Exchange of India (NSE)

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Bombay Stock Exchange (BSE)

Bombay Stock Exchange (BSE) Definition

The Bombay Stock Exchange of India or BSE is a stock exchange located in Mumbai. It is the second largest exchange in India in terms of market capitalization and trading volume. The first is the National Stock Exchange of India (NSE).

2Bombay Stock Exchange (BSE) Meaning

The Bombay Stock Exchange is the oldest stock exchange in Asia and contains the third largest amount of listed companies in the world around 4,900 in total. The NSE and BSE account for the majority of the trading volume in and around India and both are comparable in size. The BSE market has been around since the 1850s and is the 12th largest exchange in the world. It has one main index known as the Sensex 30, BSE 30, or the BSE Sensex. The Index is a value weighted index which consist of the 30 largest actively traded companies in terms of market cap and volume. These BSE quotes account for approximately 50% of the BSE market.

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bombay stock exchange

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bombay stock exchange

See Also:
National Stock Exchange of India (NSE)
New York Stock Exchange (NYSE)
Tokyo Stock Exchange (TSE)
London Stock Exchange (LSE)

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BM&FBovespa

BM&FBovespa Definition

The BM&FBovespa definition is known as the Bolsa de Valores Mercadorias & Futuros de Sao Paulo or the Sau Paulo Stock Exchange in English. It is the largest stock exchange in Brazil, fourth largest in the Americas, and tenth largest in the world in terms of market capitalization. Furthermore, this stock exchange is currently one of the fastest growing in the world.

BM&FBovespa Meaning

The BM&FBovespa exchange was founded in Sao Paulo in the year 1890. Until the 1960s, the government controlled it. The Comissão de Valores Mobiliários currently regulates it. This is essentially the same thing as the Securities and Exchange Commission in the United States. Although it has made several changes along with the rest of the world adopting an electronic trading system (an upgrade from its old phone system), it’s trading hours tend to be a bit odd. For example, it has pre and post trading sessions before it has its normal operating exchange time. This index is also known as the Ibovespa.

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bm&fbovespa

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bm&fbovespa

See Also:
New York Stock Exchange (NYSE)
London Stock Exchange (LSE)
Euronext
Tokyo Stock Exchange (TSE)

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