The New York Stock Exchange or NYSE is a physical exchange, located at Wall Street, also knows as referred as a listed exchange – where only stocks that can be traded are one that are listed on the exchange.
NYSE is the world's largest equity market. On an average trading day there are 1.46 billion shares traded that worth around 46 billion US dollars.
NYSE listed companies are one of the world’s biggest and best. They range from 'blue-chip' companies that have been trading for decades, to young high-growth ones. At the time of the writing there are around 2800 listed companies.
The NYSE has a status called 'members'. A member firm is a company or individual who owns or leases a "seat". Only these member firms are allowed to buy and sell securities on the trading floor. The member firms must must meet rigorous professional standards set by the Exchange.
The number of seats is 1366 since 1953. Since 1868 it has been possible for members to sell or lease their seats after a change in the rules of the exchange.
Customers orders are sent by brokers to the floor brokers, who are members of the exchange. Then, floor brokers send the order to the specialist’s trading post where order is finally get executed.
Specialist who is also known as a market maker, as the name imply, specialize in one security only and his job is to make a market for it. So the specialist's job is to match buy and sell orders using open outcry. If there is a spread between bid and offered price and the trade can’t be executed in that moment, the specialist comes in with his own money or stock to close the difference. In other words – to make the market.
When trade is executed, details are reported on the tape and sent back to the brokerage house, who then notifies the customer that his trade was executed and at what price. That's the report that You and I get when we buy or sell a stock.
Now let's go to the history of New York Stock Exhange in the History Of The New York Stock Exchange.
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