Charles Schwab, U.K., Limited

Charles Schwab, U.K., Limited
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Why the U.S. Market

Well Established, Better Capitalisation, and More Liquidity

A well-established market with abundant financial data, the U.S. market reporting and information make it highly transparent. No other financial market is as large, accessible, transparent, and liquid as the U.S. market. Transaction volume, market capitalisation, and the sheer number of listed companies make it a unique investment opportunity for foreign investors.

U.S. Markets are Better Capitalised

The U.S. stock markets represent the biggest single concentration of wealth in history. In terms of market capitalisation, no other financial market comes close to the combined U.S. stock markets. As of the end of 2018, the market capitalisation of the NYSE was valued at US$20.68 trillion.

Exchanges Market Capitalisation
(2018; USD Trillions)
NYSE $20.68
NASDAQ $9.76
Japan $5.30
Shanghai $3.92
Hong Kong $3.82
Euronext $3.73
London $3.64
Shenzhen $2.41

U.S. Stock Markets are More Liquid

Looking at the NYSE alone, the value of share trading for the whole year of 2018 was 7.6 times that of London, 3.1 times that of Japan, and 8.3 times that of Hong Kong. U.S. markets are still the biggest in terms of turnover as well as value. That means there's a very high chance of finding a buyer or seller of any particular stock at any given time. However, investors should be aware that there are securities offered in the U.S. market that are illiquid. Investors should consider their individual situation before purchasing any specific securities.

Exchanges Value of Share Trading in 2018
(USD Trillions)
NYSE $19.34
NASDAQ $16.79
Shenzhen $7.56
Japan $6.30
Shanghai $6.12
London $2.55
Hong Kong $2.34
Euronext $2.20

U.S. Stock Markets Offer Greater Diversification

U.S. markets offer access to a huge variety of American companies seeking capital. With over 5,000 companies to choose from, you can invest in major companies and global brands that list their shares on U.S. financial markets.

Exchanges Number of Companies
US* 5,343
Japan 3,657
China** 3,584
London 2,479
Hong Kong 2,315
Euronext 1,208

Source: World Federation of Exchanges. Data as of December 31, 2018.

* include NYSE and NASDAQ

** include Shanghai and Shenzhen