Australia - Stocks traded, total value (% of GDP)

Stocks traded, total value (% of GDP) in Australia was 92.34 as of 2020. Its highest value over the past 45 years was 160.81 in 2007, while its lowest value was 0.74 in 1978.

Definition: The value of shares traded is the total number of shares traded, both domestic and foreign, multiplied by their respective matching prices. Figures are single counted (only one side of the transaction is considered). Companies admitted to listing and admitted to trading are included in the data. Data are end of year values.

Source: World Federation of Exchanges database.

See also:

Year Value
1975 1.20
1976 1.27
1977 1.34
1978 0.74
1979 1.49
1980 3.30
1981 4.40
1982 2.54
1983 5.26
1984 5.22
1985 8.45
1986 12.43
1987 30.36
1988 17.35
1989 14.53
1990 12.91
1991 14.01
1992 12.92
1993 21.38
1994 30.85
1995 26.69
1996 36.14
1997 34.51
1998 38.94
1999 51.09
2000 51.31
2001 63.46
2002 73.59
2003 90.22
2004 88.73
2005 88.14
2006 114.90
2007 160.81
2008 79.59
2009 90.67
2010 98.58
2011 80.73
2012 58.56
2013 49.98
2014 47.94
2015 55.58
2016 65.88
2017 63.52
2018 54.18
2019 59.93
2020 92.34

Development Relevance: Stock market size can be measured in various ways, and each may produce a different ranking of countries. The development of an economy's financial markets is closely related to its overall development. Well-functioning financial systems provide good and easily accessible information which can lower transaction costs and subsequently improve resource allocation and boosts economic growth. Both banking systems and stock markets enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient relative to domestic banks. Open economies with sound macroeconomic policies, good legal systems, and shareholder protection attract capital and therefore have larger financial markets. Recent research on stock market development shows that modern communications technology and increased financial integration have resulted in more cross-border capital flows, a stronger presence of financial firms around the world, and the migration of stock exchange activities to international exchanges. Many firms in emerging markets now cross-list on international exchanges, which provides them with lower cost capital and more liquidity-traded shares. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations.

Limitations and Exceptions: Data cover measures of size (market capitalization, number of listed domestic companies) and liquidity (value of shares traded as a percentage of gross domestic product, value of shares traded as a percentage of market capitalization). The comparability of such data across countries may be limited by conceptual and statistical weaknesses, such as inaccurate reporting and differences in accounting standards. Only EOB trades are included in the total value of shares traded.

Statistical Concept and Methodology: The value of shares traded represent the transfer of ownership effected automatically through the exchange's electronic order book (EOB), where orders placed by trading members are usually exposed to all market users and automatically matched according to precise rules set up by the exchange, generally on a price/time priority basis. For data before 2001, the WFE used two different approaches for the collection of trading data, depending on the individual stock exchange's market organization and rules. The first approach is the Trading System View (TSV). Stock exchanges adopting this view count only those transactions which pass through their trading system or trading floor. The TSV is generally adopted by exchanges which operate a centralized order book (order-driven market). Trades done by their members off the exchange are not included. The second approach is the Regulated Environment View (REV). Stock exchanges in this category include all transactions subject to supervision by the market authority, including transactions made by members, and sometimes non-members, on outside trading systems and transactions into foreign markets. Figures reported under the REV approach will be higher than those reported under the TSV approach.

Aggregation method: Weighted average

Periodicity: Annual

General Comments: Stock market data were previously sourced from Standard & Poor's until they discontinued their "Global Stock Markets Factbook" and database in April 2013. Time series have been replaced in December 2015 with data from the World Federation of Exchanges and

Classification

Topic: Financial Sector Indicators

Sub-Topic: Capital markets