New York Stock Exchange (English. New York Stock Exchange, NYSE) - home US stock exchange, the world's largest. Financial Power Symbol USA and the financial industry in general. The stock exchange calculates the world-famous Dow Jones index for shares of industrial companies (English. Dow Jones Industrial Average), as well as the NYSE Composite Index.
History
Exchange formed 17 May 1792 of the year, when 24 new york broker, who worked with financial instruments and concluded transactions, like their London colleagues, in coffee shops (the most popular coffee house "Tontin"), signed the "Sycamore Agreement" (Buttonwood Agreement) on the basis of NNew York Stock Exchange.
With 1975 of the year became a non-profit corporation, owned by their 1366 individual members (this number is constant with 1953 of the year). Members' seats may be for sale, the price of one seat now reaches up to 3 million US dollars.
In the beginning of March 2006 of the year NYSE completed the merger with the electronic exchange Archipelago Holdings and for the first time in its history offered shares to investors, starting, thus, commercial organization. Stock trades NYSE Group are held on the exchange itself, capitalization as of 5 December 2007 reached $22,6 billion.
At the beginning of June 2006 a future merger was announced New York Stock Exchange from European stock exchange Euronext. This union happened 4 April 2007 of the year
Exchange membership
TO 1817 year on New York Stock Exchange transactions with shares 30 companies. Every day, the chairman of the board of directors unveiled the entire list of traded shares..
With the opening of trading Brokers set prices for the purchase and sale of shares from personal, strictly to each assigned, seats in the trading floor. Today, most of 1366 places are owned by large financial firms and specialists. In the distant 1800 the place was worth a year 25$, and two hundred years later – more than $2 million. In December 1999 G. the cost of the place has reached $2,6 million.
NYSE listing
Listing on New York Stock Exchange passed more 2800 companies, of which about 450 – foreign companies from 53 countries. Companies, those that have been listed contain themselves, as more reliable, sustainable companies, so-called “blue chips”, so are the young, fast growing companies. Newly minted companies appear on the quotation lists after the public offering of personal shares on the stock exchange (initial public offering – IPO). To be listed, companies must comply with the exchange's stringent financial and legal requirements.. Companies, listed, are required to pay membership fees. Nowadays, the quotation list NYSE replenished largely due to the introduction of shares of foreign companies into the listing.
Hall brokers
Hall brokers are divided into brokers, working for brokerage houses, and independent brokers. And they, and others work exclusively with institutional clients.
Individuals can make transactions on the exchange through brokers of the brokerage house. These brokers play the role “financial advisors” and in order to carry out their activities, they must be licensed, pass the qualifying exam and be registered for NYSE and c Securities and Exchange Commissions.
Investor's applications are forwarded from the head office of the brokerage house to the brokers of the hall through complex electronic communication and processing systems.
Specialists
These are professional participants in the securities market, which concentrate all the orders of the hall brokers for the purchase and sale of certain shares. Any stock Maintained specialist, which influence, as an auctioneer and is located in a designated place in the trading floor of the exchange, which is called a trading post. All brokers – buyers and sellers for each stock are positioned around the respective trading post. Brokers shout out their bids loudly – competition of applications forms the price.
Number of shares, traded in one specialist, depends on the aggregate market activity. There is a display above the trading post, where you can see a variety of information on shares, traded at the provided trading post.
About 95% orders to buy or sell shares are sent directly to the trading post. But that's just 65% from the total volume of transactions. Other 35% transactions occur as a result of the execution of all 5% applications, getting on the trading post from the brokers of the hall, located near the trading post in order to get the best price per share from a specialist.
Specialists perform four main functions:
- Auctioneer. At the beginning of the trading session specialist publishes market prices for each share traded by him. They are formed on the ratio of supply and demand. During the day, the specialist accumulates orders to buy and sell shares, acting as an auctioneer.
- Agent. specialist carries out all applications, arriving through electronic systems and applications, from brokers.
- Observer. specialist follows, to trade stocks smoothly, without gross price fluctuations.
- Dealer. If there are significantly more buy orders, than sell orders, or vice versa, specialist can enter the auction, using money or stock of your own company. He buys or sells against the trend until then., as long as supply and demand are not balanced with.
Activity
Board of Directors NYSE includes a chairman, the president, ten members of the exchange and ten representatives of the business community.
The exchange building is located on the famous Wall Street at Wall Street, 11.
Working hours
New York Stock Exchange opens for trading from Monday to Friday 9:30 morning until 4:00 evenings (AND), premature closure in rare cases. The market also shuts down for nine holidays throughout the year.
