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There are several prominent lists and indices that
cover the largest companies in the world. While they don’t
include the largest private companies such as Saudi Aramco,
they do reflect a shift in gravity from developed to emerging
economies.
Elsewhere in Economy Watch we discuss the types of business
that exist today, and the effects of globalization
The opening up of world economies has allowed businesses
to scale on a truly global level. These new multi-national
corporations have become immense, and are often bigger
than national economies.
A number of indices have been developed to list the largest
companies and businesses in the world. These lists tend
to be dominated by US companies, with a sizable contingent
of European companies. However, in recent years we have
seen the beginnings of a trend away from companies in
the developed world and towards entities from the emerging
markets that are growing at a faster pace.
It is important to note that these indices can only categorize
publicly listed companies, and therefore may not be truly
reflective of the world pecking order. Many authorities
believe that the largest company in the world is actually
Saudi
Aramco, the company that controls the entire petrochemical
industry in Saudi Arabia. However, since it is a private
company that does not report its revenues, these claims
cannot be verified.
Here are some of the major lists and indices of global
companies:
Fortune Global 500
Each year Fortune Magazine calculates the size of the
largest companies in the world, and publishes the Global
500 list of the largest, together with their company profiles.
Fortune Global Most Admired Companies
Fortune surveys executives at the top companies of the
world, which it classifies as companies with market capitalization
of over US $8 billion. It asks respondents to rate their
peers on categories such as industry leadership, talent
management and innovation, and publishes the results
Forbes 2000 Companies
This is an annual compendium of the biggest publicly-listed
companies in the world, compiled by Forbes Magazine. The
report was started in 2004, and in 2008 lists companies
based in 60 different countries worldwide. Companies are
ranked on a mix of metrics including market value, sales,
assets and profits. The Forbes 2000 companies account
for no less than US $30 trillion of sales and own US $119
trillion of assets worldwide!
S&P Global 1200
The S&P Global 1200 Index is an index of global stocks
that are tracked by Standard & Poor’s. The index
has components from 31 countries and is estimated to include
approximately 70% of worldwide stock market equity. It
is composed of six regional or continental indices:
S&P 500 Index (US)
S&P/TSX 60 Index (Canada)
S&P Latin America 40 Index (Brazil, Mexico, Argentina,
Chile)
S&P/TOPIX 150 Index (Japan)
S&P Asia 50 Index (Hong Kong, Korea, Singapore, Taiwan)
S&P Europe 350 Index (Europe)
Dow Jones Industrial Average
The Dow Jones Industrial Average consists of 30 of the
largest publicly traded companies in the US, who are also
among the largest worldwide. It was created by a former
Wall Street Journal editor and founder of Dow Jones &
Company, Charles Dow. It is also called the DJIA, the
Dow 30 or the Dow Jones.
S&P 500
This stock market index contains a selected group of large-cap
companies listed on both the New York Stock Exchange and
Nasdaq. Most of the companies listed are American. The
S&P 500 Index is a subset of the S&P Global 1200 Index
Russell 3000 Index
The Russell 3000 Index consists of the largest 3000 publicly-traded
companies in the US, representing 98% of stock market
equity in America.
Russell 2000 Index
The Russell 2000 Index is a subset of the Russell 3000
Index, and represents the smallest companies in the US
- the top 1000 companies have been removed from the list.
The Russell 2000 Index allows investors to track the small-cap
market, and represents 10% of the equity value of the
Russell 3000 Index.
ET 500 Companies
Dubbed the ‘Changing Face of India inc’, the Economic
Times of India publishes the ET 500, the list of the largest
companies in India.
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