New York Stock Exchange
From Wikistock
The New York Stock Exchange (NYSE), nicknamed the "Big Board," is a New York City-based stock exchange. It is the largest stock exchange in the United States by dollar volume and the second largest by number of companies listed. Its share volume was exceeded by that of NASDAQ during the 1990s, but the total market capitalization of companies listed on the NYSE is five times that of companies listed on NASDAQ.[1] The New York Stock Exchange has a global capitalization of $21 trillion, including $7.1 trillion in non-U.S. companies.
The NYSE is operated by NYSE Group, which was formed by merger with the fully electronic stock exchange Archipelago Holdings. The New York Stock Exchange trading floor is located at 11 Wall Street, and is comprised of five rooms used for the facilitation of trading. The main building listed on the National Register of Historic Places and is located at 18 Broad Street, between the corners of Wall Street and Exchange Place.
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Business
The NYSE trades in a continuous auction format. There is one specific location on the trading floor where each listed stock trades. Exchange members interested in buying and selling a particular stock on behalf of investors gather around the appropriate post where a specialist broker, who is employed by a NYSE member firm (that is, he/she is not an employee of the New York Stock Exchange), acts as an auctioneer in an open outcry auction market environment to bring buyers and sellers together and to manage the actual auction. They do on occasion (approximately 10% of the time) facilitate the trades by committing their own capital and as a matter of course disseminate information to the crowd that helps to bring buyers and sellers together. Most of the time natural buyers and sellers meet in a market that provides efficient price discovery in an auction environment that is designed to produce the fairest price for both parties. The human interaction and expert judgment as to order execution differentiates the NYSE from fully electronic markets. However, in excess of 50% of all order flow is now delivered to the floor electronically. Recent proposals have been made to adopt a Hybrid market structure combining elements of open outcry and electronic markets. The frenzied commotion of men and women in colored smocks has been captured in several movies, including Wall Street.
The main index of the NYSE, the Dow Jones Industrial Average (NYSE: DJI), started life on May 26, 1896. In more recent decades, the NYSE Composite Index (NYSE: NYA)was created to reflect the value of all stocks trading at the exchange instead of just the Dow 30. To raise its profile, the Composite as of the December 31, 2002 close was set as equivalent to 5000 points; its previous point value had been in the hundreds. Since September 30, 1985 its trading hours have been 9:30 - 16:00 EST. The right to directly trade shares on the exchange is conferred upon owners of the 1366 "seats". The term comes from the fact that up until the 1870s NYSE members sat in chairs to trade; this system was eliminated long ago. In 1868, the number of seats was fixed at 533, and this number was increased several times over the years. In 1953, the exchange stopped at 1366 seats. These seats are a sought-after commodity as they confer the ability to directly trade stock on the NYSE. Seat prices have varied widely over the years, generally falling during recessions and rising during economic expansions. The most expensive seat, adjusted for inflation, was sold in 1929 for $625,000, which is over six million in today's dollars. In recent times, seats have sold for as high as $4 million in the late 1990s and $1 million in 2001. In 2005, seat prices shot up to $3.25 million as the exchange was set to merge with Archipelago and become a for-profit, publicly-traded company. Seat owners received $500,000 cash per seat and 77,000 shares of the newly formed corporation. The NYSE now sells one-year licenses to trade directly on the exchange.
News
 Ottawa Citizen | Resources help lift TSX despite retreat for Toronto Star, Canada - The June crude contract, which expires next week, was off 10 cents to $124.12 (US) a barrel on the New York Mercantile Exchange after earlier jumping as ... Market Minute Energy stocks force TSX lower TSX pushed to record close |
 Brocktown News | Stock market lifted by positive signs Los Angeles Times, CA - Advancing issues led decliners by more than 2 to 1 on the New York Stock Exchange. Yields fell on government bonds. The yield on the benchmark 10-year ... Stocks turn higher as investors sift through data Wall Street is mixed after jobless claims report |
 Bombay News | Stocks open higher tracking global rise Economic Times, India - Crude oil closed at $124.12 a barrel on the New York Mercantile Exchange Thursday. The rupee was trading at 42.64/65 to the dollar at the time equity ... Stock market shows signs of consolidation Global cues lift Sensex Intra-day: Sensex up by 163 points at 17023.73 |
 RTT News | JC Penney, Kohl's, Nordstrom Earnings Beat Analyst Estimates Bloomberg - JC Penney, based in Plano, Texas, rose $2.07, or 4.7 percent, to $46.32 as of 4:15 pm in New York Stock Exchange trading, the biggest gain in six weeks. ... Big Retailers Trim Costs, and Their Profits Rise Southwest Gas seeks approval to cut rates Kohl's Net Declines After Lower Same-Store Sales; Shares Drop |
 Business Wire (press release) | NYSE Euronext aims to shake financial company rep guardian.co.uk, UK - The company was formed in 2007 from a combination of the 216-year-old New York Stock Exchange and Paris-based exchange Euronext. "In the United States, ... The Warnaco Group, Inc. Celebrates Transfer to the NYSE from Nasdaq UPDATE 1-NYSE Euronext-AMEX acquisition ahead of schedule Hey NYSE Euronext, You Tawkin? to Me? |
Brocktown News | Wall Street buoyed by inflation report Los Angeles Times, CA - Advancing issues outnumbered decliners by more than 3 to 2 on the New York Stock Exchange. Government bond yields edged up as stocks advanced. ... Stocks advance after lower inflation reading GLOBAL MARKETS-Stocks rise on tame US inflation data US market gains hold Wednesday |
 Business Wire (press release) | New York Mortgage Trust Announces Correction to its Previously ... FOXBusiness - ... for the exchange of their old certificates as soon as practicable following the effectiveness of the reverse stock split. New York Mortgage Trust, ... OdysseyRe Declares Dividends on Common Stock and Series A and ... |
 CXOToday.com | New York Stock Exchange Runs Trades On Red Hat Linux InformationWeek, NY - By Charles Babcock The New York Stock Exchange and its European subsidiary exchanges are running their trading systems on Red Hat Enterprise Linux, ... NYSE Euronext Chooses Red Hat Solutions for Its Mission-Critical ... |
 HispanicBusiness.com | Stocks advance following better-than-expected inflation read The Associated Press - Advancing issues outnumbered decliners by more than 2 to 1 on the New York Stock Exchange, where volume came to 770.9 million shares. ... US STOCKS-Futures pare gains on jobless, manufacturing data Stocks rallying Retreat in crude oil prices spurs Wall Street rally |
External links
- New York Stock Exchange website
- NYSE quick facts page
- Emporis
- Forbes Stock Market Course
- NYSE on Wikipedia
Articles
- NYSE and NASD Hold Merger Talks
- All Business: The conflicted roles in NYSE merger
- Move Over, Adam Smith: The Visible Hand of Uncle Sam Report concludes that the U.S. government surreptitiously intervenes in the American stock market
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