Here are top 5 countries with the largest stock markets cap

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Towfiqu barbhuiya / Unsplash

In today’s world, investing has become a real trend. It is a pretty good way to keep and multiply your money. It is a pretty good idea to invest your extra money instead of just keeping it in the bank. Of course, it might be a little riskier, but in this case, you have a real chance of multiplying your money.

To minimize the risks of losing your funds, you need first of all to take the right approach to invest your money. You should find a reliable broker and choose a place to trade. There are many different markets in different countries. Their value is counted using stock market capitalization.

The market capitalization of a company is calculated based on a formula where the number of shares is multiplied by the value per share. The number you get is the market capitalization of the company. Accordingly, market capitalization is the sum of the capitalization of all companies that are traded on this market.

Thus, you can evaluate the capitalization of the markets in different countries and choose the most suitable market. Then you can find information about the best markets by country and their most expensive companies.

What are the top 5 countries by market capitalization

As of 2021, the top 5 countries by market capitalization are as follows:

  1. US capitalization is $48.967 Trillion.
  2. China‘s capitalization is $7.232 Trillion.
  3. Japan’s capitalization is $4.319 Trillion.
  4. France’s capitalization is $2.923 Trillion.
  5. UK capitalization is $2.557 Trillion.

As you can see from this information, the richest stock market in the world is in the U.S. It surpasses its closest rival more than 6 times. However, this does not mean that the U.S. is the most profitable country to trade in. Many factors can affect this. Such as the number of companies in the market and the general situation in the region, which can affect the value of different companies.

What are the top 10 richest companies in the world

As I described above, market capitalization is made up of the value of the most expensive companies in the market. So if you are looking for an investment opportunity, you might be wondering what are the most expensive companies in the world.

  1. Apple is a techno-giant company that is engaged in the production of various gadgets and software. It’s one of the most recognizable brands in the world and is present in most countries around the world.
    • The Apple capitalization is $2.294 Trillion.
  2. Saudi Aramco is the national oil company of Saudi Arabia. It accounts for up to 10% of the world’s oil production and about 14% of its exports. This makes it one of the largest oil companies in the world.
    • Saudi Aramco capitalization is $2.206 Trillion.
  3. Microsoft is a company that produces software and various electronics, including computers, laptops, and smartphones. Their most popular products are the Windows operating system and office software package Microsoft Office. These programs are known all over the world and they are the highly demanded by users.
    • Microsoft capitalization is $1.979 Trillion.
  4. Alphabet (Google) is also a company that is involved in the IT sphere. They make software, gadgets, and more. The search engine Google is also known around the world. It is a search engine used by more than 90% of users globally.
    • The Alphabet capitalization is $1.524 Trillion.
  5. Amazon is specializing in e-commerce and various cloud services. The company sells to many countries around the world and is one of the most recognized online stores in the world. 
    • The Amazon capitalization is $1.158 Trillion.
  6. Tesla this is an American company that specializes in the production of electric cars. At the moment it is the largest manufacturer of electric cars in the world. 
    • Tesla capitalization is $756.87 Billion.
  7. Berkshire Hathaway is a holding company based in the U.S. that holds a piece in various companies. Its chairman and CEO is legendary investor Warren Buffett.
    • Berkshire Hathaway capitalization is $615.41 Billion.
  8. Johnson & Johnson is a pharmacological company that manufactures a variety of medical devices, drugs, vaccines, and baby care products. It grew quite a bit during the Covid 19 pandemic, because of the production of their own vaccine.
    • Johnson & Johnson capitalization is $479.51 Billion.
  9. United Health Group is an American company that deals with life insurance and health care. It is the largest insurance company in the world in terms of net premium collected.
    • United Health Group capitalization is $476.32 Billion.
  10. Tencent Holdings is a Chinese tech company that produces a variety of mobile games, music, web portals, e-commerce, and Internet services.
    1. Tencent Holdings capitalization is $473.22 Billion.

As you can see from the chart above, the gap between the leading tech giants and their competitors is quite large. You can also see that most of these companies are located in the United States. That is why the U.S. market is far ahead of its closest competitors.