European Union - Stocks traded, turnover ratio of domestic shares (%)

The value for Stocks traded, turnover ratio of domestic shares (%) in European Union was 68.78 as of 2020. As the graph below shows, over the past 44 years this indicator reached a maximum value of 214.27 in 2008 and a minimum value of 15.25 in 1979.

Definition: Turnover ratio is the value of domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12.

Source: World Federation of Exchanges database.

See also:

Year Value
1976 15.97
1977 18.43
1978 20.40
1979 15.25
1980 15.76
1981 18.47
1982 19.67
1983 27.22
1984 24.22
1985 32.01
1986 41.87
1987 95.98
1988 57.70
1989 47.89
1990 71.74
1991 54.30
1992 59.37
1993 58.18
1994 65.83
1995 57.63
1996 37.09
1997 71.85
1998 135.65
1999 81.44
2000 120.98
2001 117.85
2002 104.43
2003 83.54
2004 86.65
2005 88.03
2006 93.73
2007 124.52
2008 214.27
2009 90.65
2010 87.30
2011 101.96
2012 73.45
2013 61.71
2014 86.25
2015 76.86
2019 57.85
2020 68.78

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 domestic shares are used in order to be consistent with domestic market capitalization.

Statistical Concept and Methodology: Turnover ratio is the value of electronic order book (EOB) domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12, according to the following formula: (Monthly EOB domestic shares traded / Month-end domestic market capitalization) x 12.

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