Prepared by : Philani Rikhotso

Designation : Trader / Market Expert

Founder & Administrator of the Stock
Market Blueprint Mentorship Programme
Topic : Global Stock Market Breakdown
Document Type : Manual
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STOCK MARKET BLUEPRINT ZAR Global Stock Market Breakdown Page 1

 SECTION A
What is the Stock Market?
The Stock Market is a marketplace where shares, currencies, commodities & other
instruments are traded (bought & sold). We will be using shares for reference
throughout in order to give you a better understanding. The Stock Market is a
marketplace that you cannot go to physically but one that you can access
electronically through a variety of platforms, brokers & other institutions.

Every country with a free market economy has a Stock Market. You can access the
Stock Market through a Stock Exchange (Stock Exchange explained in next section).
Stock Markets exist individually (Per country) & then the Global Stock Market exists
when you put all the individual Stock Markets together. When you take all the Stock
Markets from every country around the world they form one big Global Stock
Market. Therefore when referring to the Stock market you can either be referring to
Stock Markets per country or you can be referring to the Global Stock Market as a
whole. The

What is the difference between the Stock Market

& a Stock Exchange?
A Stock Exchange is a physical place that administers companies (shares) that are
traded in the Stock Market. Every company must first register & list its shares on a
certain Stock Exchange before its shares can be publicly traded by people like you &
me. Every company must first go through a Stock Exchange in order to make its
shares available in the Stock Market. The difference between a Stock Exchange &
the Stock Market is that you can physically go to a Stock Exchange (Johannesburg
Securities Exchange or New York Stock Exchange) but you cannot physically go to
the Stock Market. You can access the Stock Market electronically.

What is the Economy?

Every country has an economy of its own. The economy of a country is a reflection of
that countries’ financial performance (SA economy, US economy, Chinese economy
etc.). When you put all the economies of all the countries around the world
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together, you get one big economy, the Global Economy. When you speak of
economy you can either be referring to the economy of each separate country or
the Global World Economy as a whole.

SECTION B
Every Stock Exchange in every country has companies (shares) that are listed in it &
those companies (shares) form part of the Stock Market. There are lots of
companies (shares) listed on each countries’ Stock Exchange. Companies sell
different products & services, therefore because of this companies are classified
according to different sectors / industries. This is why we have the Mining Sector /
Industry, Banking Sector / Industry, Construction Sector / Industry etc. Sectors are
what distinguish the operations or activities of one company from the other.

Global Stock Exchanges & Stock Markets

If we were to discuss every Stock Exchange from every country one by one we would
take ages to finish. Therefore, let us go through some of the major Stock Exchanges
around the world from continent to continent. A country may have more than one
Stock Exchange in it. Some countries have more than one Stock Exchange operating
in them.

Below are Stock Exchanges from some of the countries around the world. We are
also going to put 2 companies (shares) that are listed on each of those Stock
Exchanges.

1. South Africa
Stock Exchange = Johannesburg Securities Exchange (JSE)
Currency = Rand
Company (Share) Sector / Operations
Shoprite Retail Group
African Rainbow Minerals Mining Company

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 2. Nigeria
Stock Exchange = Nigerian Stock Exchange
Currency = Naira
Company (Share) Sector / Operations
Dangote Group Cement Producer
Guinness Nigeria Beer Brewing & Alcoholic Beverages

3. Ghana
Stock Exchange = Ghana Stock Exchange
Currency = Cedi
Company (Share) Sector / Operations
Ghana Commercial Bank Banking & Financial Services
African Champion Industries Consumer Goods

4. Egypt
Stock Exchange = Egyptian Stock Exchange
Currency = Egyptian Pound
Company (Share) Sector / Operations
Air Arabia Egypt Airline
Novartis Healthcare

5. Botwsana
Stock Exchange = Botswana Stock Exchange
Currency = Pula
Company (Share) Sector / Operations
Mascom Telecommunications
Mac Air Charter Airline

6. India
Stock Exchange = National Stock Exchange
= Bombay Stock Exchange
Currency = Rupee
Company (Share) Sector / Operations
Glenmark Pharmaceuticals Pharmaceuticals
Hindustan Petroleum Oil & Gas

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 7. China
Stock Exchange = Shanghai Stock Exchange
= Shenzhen Stock Exchange
= Hong Kong Stock Exchange
Currency = Yuan Renminbi
Company (Share) Sector / Operations
Yanzhou Coal Mining Coal Mining
Changqing Iron & Steel Company Metals & Steel

8. Australia
Stock Exchange = Australian Stock Exchange
= New Zeeland Stock Exchange
= National Stock Exchange of Australia
Currency = Australian Dollar
Company (Share) Sector / Operations
Property Link Group Real Estate
The Food Revolution Group Food, Beverage & Tobacco

9. Japan
Stock Exchange = Tokyo Stock Exchange
= Kukuoka Stock Exchange
= Nogaya Stock Exchange
= Jasdaq Securities Exchange
Currency = Japanese Yen
Company (Share) Sector / Operations
Toyota Motor Corporation Car Manufacturer
Sony Corporation Electronics Manufacturer

10. Korea
Stock Exchange = Korea Exchange
Currency = Korean Won
Company (Share) Sector / Operations
LG Electronics Electronics Manufacturer
Samsung Electronics Manufacturer

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 11. Russia
Stock Exchange = Mosco Exchange
Currency = Russian Ruble
Company (Share) Sector / Operations
Rosneft Oil & Gas Company
Lukoil Oil & Gas Company

12. Dubai (United Arab Emirates)

Stock Exchange = Dubai Financial Market
= Abu Dhabi Securities Exchange
= NASDAQ Dubai
Currency = UAE Dirham
Company (Share) Sector / Operations
Arab Insurance Group Insurance Company
Dubai Islamic Bank Banking & Financial Services

13. Germany
Stock Exchange = Frankfurt Stock Exchange
= Xetra Stock Exchange
= Stuttgart Stock Exchange
= Munich Stock Exchange
= Berlin Stock Exchange
Currency = Euro
Company (Share) Sector / Operations
BASF Chemicals Company
Deutsche Bank Banking & Financial Services

14. France
Stock Exchange = Euronext Paris
Currency = Euro
Company (Share) Sector / Operations
L’Oreal Cosmetics & Beauty Products Maker
Renault Car Manufacturer

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 15. Italy
Stock Exchange = Borsa Italiana Stock Exchange
Currency = Euro
Company (Share) Sector / Operations
Ferrari Luxury Vehicle Maker
Air Liquide Gases Supplying company

16. United Kingdom (England)

Stock Exchange = London Stock Exchange
Currency = British Pound
Company (Share) Sector / Operations
Barclays Banking & Financial Services
Unilever Consumer Goods

17. Switzerland
Stock Exchange = Swiss Exchange
Currency = Swiss Franc
Company (Share) Sector / Operations
Rolex Watchmaker
Nestle Food Producing Company

18. United States of America

Stock Exchange = New York Stock Exchange
= NASDAQ Stock Exchange
= National Stock Exchange
= Chicago Stock Exchange
= American Stock Exchange
Currency = US Dollar
Company (Share) Sector / Operations
Apple Cellphone, Laptops & Smart Devices Maker
Coca Cola Beverages Company
19. Mexico
Stock Exchange = Mexican Stock Exchange (Bolsa Mexicana de Valores)
Currency = Mexican Peso
Company (Share) Sector / Operations
Maxcom Telecommunications Telecommunications Company
Macquarie Mexico Real Estate Real Estate / Property

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 20. Brazil
Stock Exchange = BM & F Bovesta (Bolsa de Valores, Mercadorias & Futuros)
Currency = Brazilian Real
Company (Share) Sector / Operations
Petrobras Oil & Gas
Vale Mining Company

21. Canada
Stock Exchange = Canada National Stock Exchange
= Toronto Stock Exchange
Currency = Canadian Dollar
Company (Share) Sector / Operations
Connacher Oil & Gas Oil & Gas Company
Cargojet Cargo Airline Company

SECTION C
Stock Market Measure of Peformance
REMINDER: Each stock Market from each country exists on its own separately.
Furthermore, when you put them all together you get one big Global stock Market.
Each Stock market can either perform good (Go up) or it can perform bad
(Go down). So now, how do we see how each Stock Market is performing? How do
we measure the overall performance of each Stock Market?

Each company that is listed on each Stock Exchange exists on its own separately.
Therefore we can simply see each company’s performance by simply looking at its
share price to see how it is doing. But now, we also have sectors or industries that
each company is categorized under (i.e. Mining Sector, Banking Sector etc.).
So now, how do we see how each sector or industry is performing?

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 Measure of Peformance
When you want to see the performance of an overall Stock Market or of a specific
sector / industry you have to look at an INDEX. An Index is what you look at to see
the overall performance of a sector or Stock Market. If you want to see how the
overall shares listed in South Africa or USA are performing, you look at an Index. If
you want to see how the overall Mining Sector, Retail Sector or Oil Industry is doing,
you have a look at an Index.

Below are some of the major Indexes that are used to see the overall performance
of Stock Markets & sectors around the world.

JSE All Share Index

This index shows the overall performance of all the shares (companies) that are listed in South
Africa. (JSE)

JSE Top 40 Index

This index shows the overall performance of the 40 biggest shares (companies) that are listed in
South Africa. (JSE).
JSE Financials Index
This index shows the overall performance of the banks (financial institutions) in South Africa / JSE

JSE Resources Index

This index shows the overall performance of the all the resources companies (shares) that are
listed in South Africa on the JSE

Dow Jones Industrial Average

This index shows the overall performance of the 30 biggest shares (companies) in the USA.

S & P 500 (Standard & Poors 500)

This index shows the overall performance of the 500 biggest companies (shares) in the USA.

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 NASDAQ
This index shows the overall performance of more than 3000 companies (shares) that are listed
on the NASDAQ Stock Exchange.

FTSE 100
This index shows the overall performance of the 100 biggest companies (shares) listed on the
London Stock Exchange.

DAX 30
This index shows the overall performance of the 30 biggest companies (shares) in Germany
(Frankfurt Stock Exchange).

CAC 40
This index shows the overall performance of the 40 biggest companies (shares) in France.

Nikkei 225
This index shows the overall performance of the 225 biggest companies (shares) in Japan.
(Tokyo Stock Exchange).

Shanghai Index
This index shows the overall performance of all the companies (shares) that are listed on the
Shanghai Stock Exchange.

Hang Seng Index

This index shows the overall performance of the largest companies (shares) on the Hong Kong
Stock Exchange.

All Ordinaries Index

This index shows the overall performance of the 500 biggest companies (shares) in Australia.
PLEASE NOTE
Exchange Traded Funds (ETF’s) are derived from Indexes. You can also trade or invest in indexes
by buying or selling Exchange Traded Funds of those indexes that you want. When you trade or
invest in an index (ETF) you are trading or investing in a basket of shares (instruments) in one go.
Your profits or loses will be determined by the overall performance of that index (ETF).

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 Why do companies list their shares on
Stock Exchanges?
Every company wants to grow bigger & expand its operations so that it can make more profits. In
order to grow & expand, a company will need more money (capital) so that it can buy more
equipment, more assets & to finance everything that it needs for it to grow & expand. One way
of raising that money (capital) is by borrowing & the other way is to sell shares to investors by
going public. When a company lists its shares on the Stock Exchange it is able to raise money
(capital) that it will use to grow & expand. When a company lists on the Stock Exchange it sells
you shares (part ownership) in exchange for money that it will use to grow & expand its
operations.

SIZES OF LISTED COMPANIES

There are 3 types of sizes of listed companies. Therefore with regards company sizes, there are 3
types of listed shares. There are Small Caps, Mid Caps & Large Caps.

SMALL CAPS,
Small Cap stocks are shares of companies with the smallest or lowest market capitalization.
Small Cap companies (shares) are the companies with the smallest or lowest value.

MID CAPS
Mid Cap stocks are shares of companies that are not so big but not small as well. Mid Caps are
not so exactly small, not big yet but are still considered developing companies.

LARGE CAPS (Blue Chip Stocks).

Large Cap stocks are shares of companies with the biggest or highest market capitalization.
Large Cap companies are the companies with the highest value.

Illustration
To better understand Small Caps, Mid Caps & Large Caps look at the following example.

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 CAR COST
VW POLO R 180 000 (Small Cap)
RANGE ROVER EVOGUE R 750 000 (Mid Cap)
BUGATTI VEYRON SUPERSPORT R 15 000 000 (Large Cap)
If these 3 cars were shares it would cost you very less to buy an entire VW Polo than it would
cost you to buy a Range Rover. It would cost you a lot of money to buy a Bugatti Veyron, more
money than it would cost you to buy any of the other 2.

END
Thank You

The Stock Market Blueprint Team

081 093 3577

stockmarketblue@yahoo.com
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