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Why Invest in the U.S.
Charles Schwab
 
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Better capitalized, more liquid and greater diversification


It's not hard to understand the world's enthusiasm for U.S. investments. No other international financial market comes close to the size, accessibility, transparency and liquidity of U.S. stock markets.

U.S. Markets are Better Capitalized
The U.S. stock markets represent the biggest single concentration of wealth in history. In terms of market capitalization, no other financial market comes close to the combined U.S. stock markets. As of the end of 2011, the market capitalization of the NYSE was valued at US$11.8 trillion.

Exchanges Market Capitalization
(2011;  USD Trillions)
NYSE $11.80
Tokyo $3.33
NASDAQ $3.85
Euronext $2.45
London $3.27
Shanghai $2.36
Hong Kong $2.26


U.S. Stock Markets are More Liquid
Just looking at the NYSE alone, the value of share trading for the whole year of 2011 was 6 times that of London, 4.5 times that of Tokyo, and 13 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.

Exchanges Value of Share Trading (2011;  USD Trillions)
NASDAQ $12.72
NYSE $18.03
Shanghai $3.67
Tokyo $3.99
London $2.83
Euronext $2.13
Hong Kong $1.44


U.S. Stock Markets Offer Greater Diversification
U.S. markets offer access to a huge variety of U.S. companies seeking to raise capital. With almost 5,000 companies to select from, you can invest in major companies and brands from all over the world who list their shares on U.S. financial markets.

Exchanges Number of Companies (2011)
U.S.* 4,988
London 2,886
Tokyo 2,291
Hong Kong 1,496
Euronext 1,112
Shanghai 931
*NASDAQ + NYSE


Source: World Federation of Exchanges. Data as of December 31, 2011.
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