Which exchange is recognized as the world's largest stock exchange?

The New York Stock Exchange (NYSE) holds the title of the world's largest stock exchange based on market capitalization of its listed companies. This status is due to the extensive number of companies listed on the NYSE, which include many of the largest and most well-known corporations globally. The NYSE operates under a system of physical trading floors supplemented by electronic trading, which allows for efficient transactions and a diverse portfolio of available stocks.

The significance of being the largest stock exchange is reflected not only in the sheer volume of stocks traded but also in the influence it has on global financial markets. The NYSE sets the benchmark for stock prices and market trends, which can affect investment and economic strategies worldwide. Investors and traders look to the NYSE for liquidity, stability, and established regulatory standards, making it a central hub for equity trading.

In contrast, while NASDAQ also plays a significant role in the stock market as a major electronic exchange primarily for technology stocks, and the London and Tokyo Stock Exchanges are crucial players in global finance, none of them surpass the NYSE in terms of total market capitalization.