NYSE -New York Stock Exchange
The new York stock exchange (eng. New York Stock Exchange, NYSE) — the main stock exchange in the United States, the world's largest. The symbol of financial power of USA and financial industry in General. On the stock exchange determined by the world-famous Dow Jones industrial companies (eng. The Dow Jones Industrial Average), and the NYSE Composite index.
Exchange based 17 may 1792 year, when 24 new York broker, worked with financial instruments and enter into transactions, like their London counterparts, in coffee shops (the most famous coffee shop "Tontin"), signed the "Agreement under the sycamore" (Buttonwood Agreement) on the establishment of the new York stock exchange.
With 1975 year became a non-profit Corporation, owned by its 1366 individual members (this number consistently with 1953 year). Places of members can be sold, the cost now comes to 3 million U.S. dollars.
In early March 2006 year, the NYSE completed a merger with electronic stock Archipelago Holdings and for the first time offer shares to investors, becoming, thus, commercial organization. Share trading of NYSE Group holding on stock; capitalization as at 5 Dec 2007 year made $22,6 billion.
In early June 2006 it was announced a coming merger the new York stock exchange with European stock exchange Euronext. This merger took place 4 APR 2007 year
The main difference between stock exchange of new York from other similar sites is huge tools of the trade, namely, more 8 thousand shares at the disposal of brokers. The main condition activities the NYSE is absolute transparency. All see all. That is at any time, using a special app, designed specifically for users of NYSE (LEVEL-2, Arca book, Nyse open book), you can monitor the actions of traders, thus making the overall picture of the market.
"Traders on the floor" in the new York stock exchange. For each of the thousands of traded securities has its separate shopping center, its "the pit".
On the exchange transactions in shares and other securities. For exchange listed securities, more than 3 thousand (2008) companies. The total capitalization of the companies, traded on the NYSE, by the end of 2006 g. made $26,5 trillion.
The NYSE Board of Directors consists of a President, President, ten exchange members and ten representatives of business circles.
The exchange building is located on the famous wall street at Wall Street, 11.
Listing on the NYSE
The main criteria companies:
- the existence of an interest to securities on the part of the state (where the Issuer);
- the position of the Issuer in the industry (his popularity);
- the stability of the company and its prospects in the future.
For the admission to the stock exchange, the issuing company must have the following characteristics:
- Income before taxes for last year 2,7 млн долл.
- Profit for the 2 the previous year 3,0 млн долл.
- The net value of tangible assets — 18,0 млн долл.
- The number of shares in public hands — on 1,1 млн долл.
- The market value of the shares 19,0 млн долл.
- The minimum number of shareholders, owning 100 promotions and more, — at least 2 thousand.
- The average monthly trading volume of the shares of the Issuer must be at least 100 thousand. $ . in the past 6 months.
The members of the stock exchange NYSE
On the stock exchange is 1366 members:
- brokers-Commission agents – 700 people;
- specialists 400 people;
- brokers in the room – 225 people;
- stock brokers 41 people.
1. Brokers-middlemen work at one of the brokerage firms. The main task – to collect orders from customers and delivered in the exchange hall. The broker Commission is responsible for the execution of orders.
2. Stock brokers engaged in the implementation of the orders of other brokers, are assistants to the brokers-middlemen (in the case, when they do not have time to cope with the large volume of applications). Receive a portion of the commissions, which customers pay to the broker. To work on the stock exchange must take the exam, to obtain a license and be registered on the NYSE.
3. Traders make deals in exchange for their money. The client orders them to perform illegal. Income exchange trader develops due to the difference of exchange in the market (speculation). Often stock traders are called "competitive traders".
4. Experts – professional employees of the market, collecting applications from brokers for the purchase (sale) stock. The function is similar to the operation of brokers. If the broker-the Commission has no time to order, it is passed to the specialist. The latter is obliged to follow. If the deal fade, specialist receives a percentage of the broker-Commissioner. All orders recorded in the last book limited orders.
A key role play with the experts (specialists). Their number is slightly less 400 and they work on seven companies (specialists firms):
- Bear Wagner Specialist LLC.
- Fleet Specialist, Inc.
- LaBranche & Co., LLC.
- Performance Specialist Group, LLC.
- Spear, Leeds & Kellog Specialists LLC.
- SIG Specialists, Inc.
- Van der Moolen Specialists, LLC.
Specialists on the exchange serve four basic functions:
- The auctioneer. In the beginning of the trading session, the specialist announces the market price for the shares of several issuers, for which he is responsible on the basis of orders, received before the opening of the trading session. The algorithm of determining the price of the opening call auction (volley auction), which is used in many stock exchanges of the world to determine the opening price.
- Agent. Specialist performs all bids, he passed other members of the exchange. Implementing data applications, specialist acts as a broker or an agent and receives a part of Commission fee, Commission payable to the broker.
- The observer. Specialist watching, to trade stock smoothly, without sudden price fluctuations.
- Dealer. If orders to buy much more, than sell orders, or Vice versa, the specialist is required to join the bidding, using existing money or shares. Specialist buys or sells against the trend until then, while supply and demand will regain their equilibrium not. For the specialist establishes the right of suspension of trading (usually for a few minutes) in the case of market imbalance between supply and demand.
Control and regulation of the NYSE
The new York stock exchange – joint stock company, features of work, rules and regulations spelled out in the Charter.
In the management of NYSE 26 people, of which:
- 12 person – independent representatives, "external managers";
- 12 people – the direct exchange members;
- 2 employees are permanent employees of the stock exchange NYSE Chairman and Deputy Chairman.
To protect the interests of the exchange and the maintenance of its performance involved four organizations:
1) The U.S. Congress. Basic functions:
- the proposal of candidates to the Commission on securities and exchanges;
- the regular work of the exchange;
- control of compliance of transactions with the exchange;
- tracking and adjustment of the emergence of new entities on the stock market.
2) The Commission on securities and exchanges:
For violation of standards and rules, the Commission has the right to punish market participants – to take away the license, to impose a penalty or deprive of membership.
3. The NYSE is self-regulating platform. More 70% staff involved in regulation and standardization. In the Charter of the NYSE printed more 1000 pages of standards and regulations, binding.
4. Independent brokerage company. The structure of the NYSE consists of several hundred brokerage firms. All these ensure high quality of work and compliance with all standards.
While working NYSE
The exchange is open every day, from Monday to Friday, with 9.30 to 16.00 EST, Eastern Standard Time. Translated to Moscow time with it 17.30 to 00.00(in the winter)
and in the summer an hour earlier.
The largest company on the stock exchange
- NYSE 3M Co. (NYSE: MMM) (industrial conglomerate)
- American Express Co. (NYSE: AXP) (credit services)
- AT&T (NYSE: T) (telecommunications)
- Boeing Co., The (NYSE: BA) (aviation and defence)
- Caterpillar, Inc. (NYSE: CAT) (agricultural and construction equipment)
- Cisco Systems (NASDAQ: CSCO) (telecommunications)
- Chevron Corp.(NYSE: CVX) (oil and gas company)
- Coca-Cola Co. (NYSE: KO) (drinks)
- E. I. du Pont de Nemours & Co. (NYSE: DD) (chemistry)
- Exxon Mobil Corp. (NYSE: XOM) (oil and gas company)
- General Electric Co. (NYSE: GE) (industrial conglomerate)
- The Goldman Sachs Group, Inc. (NYSE: GS)
- Home Depot, Inc. (NYSE: HD) (stores building supplies)
- International Business Machines Corp. (NYSE: IBM) (computer engineering)
- JPMorgan Chase and Co. (NYSE: JPM) (financial group)
- Johnson & Johnson Inc. (NYSE: JNJ) (chemistry, pharmaceuticals)
- McDonald's Corp. (NYSE: MCD) (fast food restaurants)
- Merck & Co., Inc. (NYSE: MRK) (pharmaceuticals)
- Nike Inc. (NYSE: NKE) Pfizer, Inc. (NYSE: PFE) (pharmaceuticals)
- Procter & Gamble Co. (NYSE: PG) (household chemicals)
- Travelers (NYSE: TRV) (insurance)
- UnitedHealth Group Inc (NYSE: UNH) (health care)
- United Technologies Corp. (NYSE: UTX) (industrial conglomerate)
- Verizon Communications (NYSE: VZ) (telecommunications)
- Visa, Inc. (NYSE: V)
- Wal-Mart Stores, Inc. (NYSE: WMT) (trading network)
- Walt Disney Co., The (NYSE: DIS) (the entertainment industry)
NYSE Arca is a fully electronic exchange platform, engaged in trade in the shares of growing companies. After the Issuer's compliance with the requirements of the NYSE his paper can be smoothly transferred to the "senior" area. In addition, NYSE Arca is a leader in location and trade public ETF.
The merger of the American stock exchange the NYSE and the European Euronext formed a group of companies NYSE Euronext. Under their administration the exchange of many cities of the world Lisbon, Brussels, Amsterdam, London (LIFFE) and other. The amount of the transaction is estimated at 8,2 billion dollars.
(with) The official website of NYSE
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