Brief explainer on the differences: US vs SG
TLDR
Overall, the US stock market is larger and more liquid than the SGX, but both markets offer opportunities for investors to find companies that match their investment goals and risk tolerance. However, it's important to note that these are general trends and there are always exceptions. Some SGX-listed companies, particularly those in the finance and real estate sectors, have high liquidity and trading volume. Additionally, some US-listed companies may have lower liquidity and trading volume, particularly those in smaller market capitalization ranges.
Most investors who experienced both SG and US stocks will be able to compare this difference, but this summary is for those who have only experienced one side.
1. Liquidity
Generally speaking, US-listed stocks tend to have higher liquidity compared to SGX-listed stocks. This is because the US stock market is the largest in the world and has a higher number of institutional investors and traders, which leads to more trading activity and higher liquidity. However, liquidity can vary depending on the specific stock and industry sector.
2. Volume
US-listed stocks also tend to have higher trading volume than SGX-listed stocks. This is because the US stock market has a higher number of traders and investors, which leads to more trading activity. The average daily trading volume for US stocks is typically much higher than that of SGX-listed stocks.
3. Market Capitalization
In terms of market capitalization, the US stock market is significantly larger than the SGX market. The largest companies in the world, such as Apple, Amazon, and Microsoft, are listed on US exchanges and have market capitalizations that are orders of magnitude larger than the largest companies listed on the SGX.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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