The American securities market is currently the most developed securities market in the world, attracting a large number of excellent companies and a large number of global investment funds at the same time. In this section, we will introduce the development of the US stock market, major exchanges and major stock indices.

1. General development situation

The American stock market originated at the end of the 18th world. In 1790, the Philadelphia Stock Exchange, the first stock exchange in the United States, was established, which meant that the American capital market officially started.

Since then, with the strong growth of the US economy, the US securities market has also risen strongly and become the largest capital market in the world. By the end of 2021, the number of listed companies on each stock exchange has exceeded 6000, and the total market capitalization of stocks has exceeded 50 trillion.

In addition, the US securities market also has almost all the financial products such as funds, bonds, futures and options, foreign exchange, digital currency and so on. Through these financial products, the investment scope can cover almost the major capital markets in the world.

two。 Major exchanges

There are mainly two major exchanges in the US stock market, including the New York Stock Exchange and the NASDAQ Stock Exchange.

New York Stock Exchange

The New York Stock Exchange, which dates back to 1792, is one of the earliest exchanges in the United States. The New York Stock Exchange is the world's largest stock exchange by the total market capitalization of listed companies as of the end of 2021, with more than 2400 stocks and a total market capitalization of more than $27 trillion.

Most of the companies listed on the New York Stock Exchange are companies with a long history, large scale and stable development, such as Coca-Cola Company, Walmart Inc, IBM and other companies that many people are familiar with.

NASDAQ Exchange

The NASDAQ Stock Exchange is an electronic stock exchange in the United States, founded in 1971, is now the second largest stock exchange in the world.

By the end of 2021, there were more than 3700 companies listed on Nasdaq, with a total market capitalization of more than $24 trillion. The Nasdaq Stock Exchange had previously been the first choice for the listing of fast-growing technology stocks. Some technology giants such as Apple Inc, Alphabet Inc-CL C and Amazon.Com Inc have all chosen to list on NASDAQ.

3. share index

At present, there are three major indexes in the US securities market, including the Dow Jones Industrial average, the S & P 500, and the NASDAQ composite index.

Dow Jones industrial average

The Dow Jones Industrial average was first published in May 1896 and has a history of more than 120 years.

At the beginning of its compilation, the Dow included 12 of the most representative stocks in American industry. Since then, it has been constantly updated and now includes 30 of the largest and best-known listed companies in various industries in the United States, most of which have nothing to do with heavy industry, but in food, finance, pharmaceuticals, software and other industries. Many people are familiar with Apple Inc, Boeing Co, Walt Disney Company, McDonald's Corp and so on are its constituent shares.

Since its inception in May 1896, the Dow has risen from an initial value of 40.94 to 36338 at the end of 2021, a 887.6-fold increase in 125 years, with an average annual return of 5.58 per cent.

Standard & Poor's 500 Index

The S & P 500 Index, compiled by S & P in 1957, is a stock index that records the performance of 500 major listed companies in the United States.

The stocks covered by the S & P 500 are almost the 500 most actively traded in the United States. Many people are familiar with Boeing Co, GM and other industrial stocks, Coca-Cola Company, Procter & Gamble Co and other consumer stocks, Apple Inc, Alphabet Inc-CL C and other science and technology stocks, all among them.

From its inception in 1957 to the end of 2021, the S & P 500 rose by an average of more than 12 per cent a year. Buffett has said that for most people, the best way to invest is to invest in the S & P 500.

Nasdaq composite index

The Nasdaq Composite Index is the most influential market index in the United States stock market. It is calculated on the basis of the common shares of all domestic and foreign listed companies listed on the Nasdaq market. Nasdaq's constituent stocks are mainly composed of fast-growing advanced technology, telecommunications and biological companies. Microsoft Corp, Intel Corp, Amazon.Com Inc and other well-known high-tech companies are all constituent stocks of the Nasdaq.

Since its establishment in February 1971, the Nasdaq has risen from an initial value of 100 points to 15645 points at the end of 2021, rising about 156.5 times in 51 years, with an average annual return of about 10.4 per cent.

The above is a brief introduction to part of the securities market in the United States. The American securities market is a very large market, there are many investment opportunities, but also accompanied by a lot of investment risks. Before participating in the US securities market, investors should take into account their own situation or seek professional advice to make investment decisions.