Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 575

Australia: Most listed stocks per capita and biggest gamblers in the world

Australia has more listed companies per head of population than just about any other country on earth – and many times more than the US. Why?

Is it because we have many times more viable businesses opportunities to pursue? Or is it because we have the wiliest stock promoters and spruikers, and we are the biggest gamblers in the world?

Actually, it is both!

Aussies leading the world

Australia has 0.3% of the world’s population, and 1.5% of the world’s land surface area, but it has 4.5% of the world ‘s stock exchange listed companies. This is some 13x the world average number of listed companies per head of population, and five times more than the USA.

Since the earliest days of organised stock exchanges in Australia’s fledgling coastal cities and scattered across a host of remote, dusty mining towns, Australians have always led the world in investing their hard-earned cash in speculative mining ventures. To this day, Australia (along with that other wild west mining frontier land, Canada) continues to have the largest number of listed companies per head of population in the world, many times more than the US, UK and other ‘developed’ or ‘rich’ countries.

The left chart shows the number of domestic listed companies in the 80-odd countries in the world with recognised stock exchanges. Countries are ranked in order of population – from China at the top, to Bermuda at the bottom.

For this purpose I exclude foreign listed companies in order to eliminate double-counting (eg ASX-listed NZ-based companies like Xero, a2Milk, Fisher & Paykel Healthcare are included in the numbers for their home exchange in NZ, but not Australia). Likewise for foreign listings on other exchanges.

In total, there are more than 55,000 companies listed on stock exchanges around the world, but only around 50,000 companies excluding multiple foreign listings. Also excluded are listed funds (unit trusts) and ETFs.

Listed companies per capita

The right chart shows the number of domestic listed companies per million population in each country. Aside from some small tax havens down near the bottom of the chart, Canada is the leader, with 113 listed companies per million population. Australia is not far behind with 75 listed companies per million people.

Other countries with relatively high numbers of listed companies per capita are technology hubs Taiwan, South Korea, Japan, and Israel.

The US market has a wide diversity of industries and has been the dominant technology and innovation hub of the world for the past century, but it has only a fraction of the number of listed companies per capita than Canada or Australia. The number of US listed companies has been declining in recent decades, despite the huge tech booms in the 1990s and 2000s.

The number of listed companies per capita in Australia have been relatively stable, and several times US levels, especially since the late 1960s mining boom. In Europe the numbers of listed companies per capita are very low indeed, probably because of the heavy state involvement and regulation of business across Europe.

Mining speculators’ paradise

Australia and Canada are the stars – but why? They are not technology innovation hubs – in fact, the exact opposite. The stock markets of both countries lack the broad diversity of industries of the US market. Australian and Canadian stock markets are both dominated by a very small number of large banks and miners.

In the case of Australia and Canada, although each has more than 2,000 and 4,000 listed companies respectively, the vast majority of these are tiny revenue-less, profitless, wannabe mining explorers with little more than a map, a compass, and the promoters’ (mostly unjustified) dream of striking it rich. This has been the case since the earliest days of share trading in remote mining settlements.

The vast majority of tiny explorers will disappear worthless when they run out of money before finding anything useful to dig up. They will be replaced by the next round of tiny explorers that will also disappear worthless when they, too, run of money. There is always a next round of starry-eyed investors willing to throw money at dreams of hitting the jackpot in some faraway patch of dirt just waiting to be discovered.

More companies, not higher returns

It should be noted that simply having more listed companies to invest in does not lead or contribute to higher share market returns. Australia and Canada are similar to the US and all other stock markets in that the vast bulk of wealth created by the share market as a whole has come from a tiny handful of companies.

One of the main downsides for Aussie and Canadian investors has been that the huge number of cashless, profitless, speculative ventures tend to divert investors’ attention from the real generators of wealth.

It is very hard to resist the lure of hitting the jackpot by discovering the next Chalice Mining or Pilbara Minerals or Lynas.

Vast unexplored territories

There are probably two main reasons for Australia and Canada having much higher numbers of listed companies per capita than the rest of the world. The first is that both countries are vast, sparsely populated, frontier territories filled with an extraordinarily wide range of mineral resources just waiting to be explored and exploited.

Mining requires capital.

Aside from the initial alluvial gold fields that were exhausted quickly by hand at minimal cost, exploration and development of mines requires large pools of capital that generally require the collection of money from hundreds or thousands of willing investors. This requires corporate structures to protect investor rights, and processes to enable the secondary buying and selling of shares, which in turn requires brokers, lawyers, accountants, auditors, and recordkeepers – ie stock exchanges.

Highest income and wealth per capita

A second likely reason for the large numbers of speculative mining ventures in Australia and Canada, is that the combination of high-value resource exports plus sparse populations, has produced very high levels of individual wealth and incomes in both countries.

In many or most resource-rich countries (like Venezuela, Nigeria and dozens of other countries), much or most of the wealth has been, and still is, siphoned off by the rulers and their cronies, resulting in very low incomes and wealth for the great bulk of the population. In contrast, Australia and Canada have had relatively stable, representative political systems, and relatively low levels of inequality of incomes and wealth.

As a result of speculative mining riches (as well as from wool during the first 150 years), Australians have enjoyed the highest or near highest median income and wealth per capita in the world since the late-1800s, much higher than the US. This is still the case today.

Chronic gamblers

Australians have long been the biggest gamblers in the world per capita (eg see Productivity Commission report). This may be one of the reasons for our love of speculative mining stocks. Or is it the other way around? Are we a nation of mad gamblers today because of our history of speculative mining riches?

Meanwhile, time to get back to finding the next winner!

 

Ashley Owen, CFA is Founder and Principal of OwenAnalytics. Ashley is a well-known Australian market commentator with over 40 years’ experience. This article is for general information purposes only and does not consider the circumstances of any individual. You can subscribe to OwenAnalytics Newsletter here. Original article is here: Australia: Most listed stocks per capita, and biggest gamblers in the world - Is there a link?.

 

  •   28 August 2024
  • 7
  •      
  •   
7 Comments
Raymond
August 29, 2024

Ashley, I reckon the connection is a stretch. We just have a lot of crappy miners desperate for cash.

ashley owen
August 30, 2024

agreed. But every one of those 1,500 'crappy miners' (or wannabe explorers actually) got 'listed' on the exchange because they convinced thousands of willing punters to part with their hard-earned cash. That's the definition of gambling.
Australia got rich on taking big risks - not just in mining but in agriculture - big bets on the weather, crop selection, timing of planting/harvesting, droughts, floods, mice, locusts, global market prices, and a host of other risks. Our ancestors took big risks and won, big time! It's in our blood!
ao

Geoff
August 30, 2024

If you think 75 is "not far behind" 113 (Aus v. Can listed companies per capita), I'm glad I'm not driving behind you on a narrow country road... :)

ashley owen
August 30, 2024

well actually its a bit more complex than that. The question of 'organised stock exchanges is not exactly a black & white concept. It depends on which companies you count in each country. Eg in Canada there is the TSX, the TSX Venture Exchange, TSX Alpha Exchange, and Montreal Exchange. If I just counted the TSX (1,782 stocks), which is like the ASX, then Australia has more companies with a smaller population.
For this exercise I include TSX and TSX Venture + Montreal, but not the Alpha exchange. (its a bit like not counting the 'Pink Sheets' in the US market - they are publicly quoted and traded but I don't count them for this purpose).
As always, I try to select the best, most relevant data that presents a fair picture for the particular issue in question.
cheers
ao

Barry
August 31, 2024

It's spelt Chalice Mining, not Challis Mining.

James Gruber
August 31, 2024

Nice pickup, Barry.

It's been corrected in the text.

ashley owen
September 01, 2024

either way it was $10 bucks a share in late 2021 at the silly boom-time bubble price. Now its $1. That's a poison chalice if ever I saw one! Still a revenue-less, profit-less wannabe. Is it a buy now?
cheers
ao

 

Leave a Comment:

RELATED ARTICLES

Can you value a share just using dividends?

The 2025 Australian Federal election – implications for investors

Is FOMO overruling investment basics?

banner

Most viewed in recent weeks

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

Latest Updates

SMSF strategies

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

The ageing ‘crisis’ has not and will not happen

Rising age dependency is frequently treated as a warning sign for economies. But when actual workforce participation is examined, a strikingly different picture emerges about ageing, productivity and economic sustainability.

Retirement

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Shares

Four charts that expose market concentration risk

Investors have recently been rewarded for backing market leaders, but history suggests this eventually comes at a cost. Now may be the time to review whether your portfolio is carrying unintended risks beneath the surface.

Investment strategies

The case for gearing beyond property

Most Australians gear into property but ignore shares. That may be a mistake. Used carefully, geared equity strategies can enhance long-term returns, reduce cash tied up in growth assets and support retirement income goals.

Economy

Australia's $1 trillion debt pile

The headlines exclaiming that Australian government debt has hit A$1 trillion and US government debt has hit $40 trillion has turned heads, but how serious are they really? Will Australia's mix of debt create challenges?

Economy

Has 100 years of growth made us any happier?

For decades, GDP has been the benchmark for economic success, but has it made us materially happier? If happiness does not rise in lockstep with prosperity, are we overlooking what constitutes a successful society?

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.