NY Stock Market
NY stock market or New York Stock Exchange (shortly NYSE), located in the Wall Street, is the largest stock exchange in the world in terms of trading volume.
The NY stock market or New York Stock Exchange (NYSE), is a popular stock exchange which is located in 11 Wall Street, Lower Manhattan, New York City. On calculating the market capitalization of all the listed companies and on ascertaining the aggregate value of the all the shares traded, NYSE is the largest stock exchange in the world with a market capitalization value of 11.92 trillion US dollars as of August 2010.
NY stock market was founded on 8th March 1817 and currently it is operated and owned by NYSE Euronext. At present, there are 2304 companies listed with this stock exchange. The currency used for trading is the Unites States Dollar (USD) and it boasts of a volume as high as $17.52 trillion as of December 2009.
Everyday, countless sellers and buyers are eagerly waiting to commence trading in stocks and equity shares of the companies listed with the NYSE, also known as the Big Board. The trading hours of the NY stock market lie between 9.30am and 4pm ET. The holidays are declared by the stock exchange in advance and it is open for trading five days a week from Monday to Friday.
This stock exchange also facilitates pre-market trading, which means that it allows the investors to trade in stocks before the regular trading hours. The trading hours for pre-market trading are from 8am to 9.29am for ArcaEdge Equities.
There is also an option of after-hours trading with NY stock market which decries that you can trade in investment products even after the market has been closed, i.e. at 4pm. This type of after-market trading can be executed at 5pm. The prices charged would be based on the price during the closing time i.e. 4pm.
The NYSE trading process is carried out as a continuous auction and the main players here on the floor are brokers and specialists. They move around the floor engaging in trading activities and provide orders to the specialists, who have a particular position on the trading floor. The entire trading process is segregated and carried out by specialists and brokers through their interaction.
Main Stock Indices
NY stock market has introduced a number of proprietary indices in order to showcase the listed companies' strengths and also for the purpose of providing benchmarks to the investors as well as issuers for measuring the marketplace or the key segments. Anyone can track the market with the help of the NYSE indices.
The main indices that track the market are NYSE Composite, Dow Jones Industrial Average, NYSE Energy, NYSE Financial, NYSE Health Care, NYSE International 100, NYSE TMT, NYSE US 100, NYSE World Leaders and NYSE ArcaTech 100.
The history of the NY stock market dates back to 17th May, 1792, when twenty four stockbrokers of New York City, including some merchants, put their signatures on a draft titled the Buttonwood Agreement. The agreement is so called because it was signed under a Buttonwood tree. Initially, only five securities were traded and the first company to be listed was the Bank of New York. Later on, these twenty four brokers became the members of New York Stock Exchange and after that, everything was history.
Looking back at the timeline of NYSE, we can see how far it has come and how its exchange has grown and expanded over a number of years until it reached its present position.
In the year 2000, an equity stock index was launched by S&P Global 100 Index which was a collaboration of NYSE and others. On March 16, 2000 DJIA had its biggest one-day point gain. In the same year decimal pricing of trades also began. On 20th October 2000 a brand new trading room was opened at Broad Street. During the same year, NYSE Direct+ was launched.
In the following year, 2001 there were a lot of significant milestones pertaining to the NY stock market too such as the volume of trading exceeding the 2 billion mark, beginning of trading UTP or Unlisted Trading Privileges, the terrorist attacks on the World Trade Centre and the biggest plummeting of points of DJIA.
In 2002, the NYSE OpenBook was launched and the Sarbanes Oxley Act was also introduced. During 2003, the Composite Index was re-launched, Rule 500 was eliminated. 28-stock pilot was launched and NYSE's brand new corporate governance standards were approved by the SEC. In 2004, the plan for expansion of the Direct+ system was filed.
A lot of other important events took place but the one that stood out the most was the merging of the NY stock market and Euronext which took place on 4th April 2007. This was a great milestone because it united a number of important marketplaces across the US and Europe under a single umbrella.
Written by: Goran Dolenc
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