Which stock exchange is recognized as the world's largest and was founded in 1790?

The New York Stock Exchange (NYSE) is recognized as the world's largest stock exchange by market capitalization and was founded in 1790. Its significance stems from its role as a central marketplace for buying and selling shares of public companies. The NYSE has a long history and has developed a reputation for being a primary hub of financial activity globally.

The NYSE operates on a system that allows for auction-based trading, where buyers and sellers can transact in a regulated and organized manner. This attracts a vast number of companies to list on the exchange, further enhancing its prominence in the financial world. The combination of its long-standing history, the volume of trade, and the total value of listed companies solidifies the NYSE’s position as the largest exchange worldwide.

In contrast, while NASDAQ is a well-known electronic exchange, it was founded later, in 1971. The Dow Jones is actually a stock market index, not a stock exchange. The London Stock Exchange, founded in the late 17th century, is one of the oldest but does not surpass the NYSE in market size today. This context underscores why the NYSE stands out as the correct answer.