Exchange NYSE: what an investor needs to know to trade stocks
Talking about stock exchanges, it is impossible not to pay attention to the largest of them. New York Stock Exchange (NYSE) has long become a true symbol of Wall Street and synonymous with financial power. What can be interesting in it for a Russian investor? In this review I will tell you, how the NYSE came about. Let's get acquainted with her website, trading mode, terms and financial instruments.
Russian companies VimpelCom conducted IPOs at NYSE, "MTS", Mechel, "Wimm-Bill-Dann". Let me remind you, that shares are usually placed on foreign exchanges in the form of depositary receipts. According to the statistics of the exchange, in past 2017 year through the IPO, about 31 billion dollars.
History of the New York Stock Exchange
IN 1792 G. traders of the unorganized market in New York signed the "Buttonwood Agreement" on the establishment of an exchange floor and the basic principles of trading based on an open auction with the payment of small commissions. In fact, it was the first semi-official American stock trading law..
The first list of traded shares was created, formed the initial capital of the exchange. The first were the shares of the Bank of New York and the Bank of the United States. There was also an active trade in government securities.. The formed financial group has adopted two rules: trade with each other and pay a fee 0,25% from the operation. At first, trade was in the form of a barter.
From that moment on, the official history of New York Stock began. & Exchange Board. Merchants stopped meeting in coffee shops and rented their first space - a small room on Wall Street, 40 Only for $200.
By the way, the name "Wall" comes from the actually located here in 17 century 4-meter defensive wall, along which the street was, appropriately named. Through 200 years, the exchange has grown to four own buildings in the city center. At the same time, the street address remained the same, only the house number has changed: today the exchange is on Wall Street 11 in NYC.
IN 1811 G. the exchange adopted two provisions, that seem obvious today, but they were very progressive for their time. Firstly, they gave everyone the opportunity to register a company (other countries may require approval up to royal), and secondly, shareholders did not answer for the company's debts and risked losing no more than their investments. Very quickly, an organization with such norms received noticeable capital and prestige - Europe pulled up later and perhaps it was then that it missed the chance of being a leader.. Although exchanges appeared there much earlier, than in the USA.
IN 1840 G. the newly appeared telegraph was used in trade. This increased the speed of closing deals. Prompt introduction of technical innovations is a distinctive feature of modern American exchanges. IN 1853 G. participants approved the first listing.
Initially, only local banks and insurance companies were listed on the NYSE, but soon the railways began to dominate the stock exchange. By the time of the civil war, more than 100 companies.
IN 1863 G. the exchange became the official New York Stock Exchange. Due to the great popularity, it was even necessary to limit the number of traders to 533 human. This was due to the personal participation of members in trading sessions. Therefore, at first the seats were sold by $25, to the beginning 19 in. their cost reached more than half a million dollars, and in 21 in. — $3 million.
IN 1867 G. on the stock exchange for the first time introduced ticker — short designation of the share
IN 1878 G. the use of telephones has dramatically increased turnover, the number of members of the exchange increased to 1060 human. IN 1882 G. set up a clearing house, and in 1884 G. the famous Dow Jones index appeared, including 11 companies. IN 1889 G. stock exchange summary converted to Wall Street Journal.
15 February 2011 NYSE and Deutsche Börse announced their merger to form a new company, whose name has not yet been announced, in which Deutsche Börse shareholders will own 60% new venture shares, and NYSE Euronext shareholders - 40%.
Bibliography
- Tank, James E. (1992). New York Stock Exchange: First 200 years . Greenwich Pub. Group. ISBN0-944641-02-4 .
- Geist, Charles R. (2004). Wall Street: history - from the beginnings to the fall of Enron . Oxford University Press . ISBN0-19-517060-1 .
- Kent, Zachary (1990). History of the New York Stock Exchange . Паб «Scholastic Library». ISBN0-516-04748-5 .
- Sloan, Leonard (1980). Sex anatomy . Doubleday. ISBN0-385-12249-7 .
- Sobel, Robert (1975). NYSE: History of the New York Stock Exchange, 1935–1975 . Weybright and Telly. ISBN0-679-40124-5 .
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