Newyork stock exchange

Importance of The New York Stock Exchange

New York Stock Exchange (NYSE) is the most prominent of all among the trading exchanges. The birth of "Big Board" occurred 200 years back at the table, where some 24 New York City stockbrokers and merchants had signed the Buttonwood Agreement. Almost all of the America’s biggest companies invest in the market through NYSE only and it contains all big name companies like Gillette, McDonald’s, Coca-Cola, General Electric, Wal-mart, Citigroup, etc.

The NYSE is also a listed exchange, which means that all of the trading occurs through physical means between the traders on a physical trading floor. There is a place on the trading floor called “trading post”, where the brokers trade their stocks and those stocks comes into the hand of brokers via brokerage firms that are members of the exchange. There is a personnel at the trading post called “specialist” that determines the prices through an auction method and matches the compatible sellers & buyers. The current price of a stock is the highest possible value a buyer offers and the lowest possible value a seller offers for its stocks. After successful completion of all these steps the brokerage firm is apprised of the trading details and the brokerage firm in turn provide those details to the concerned investor. Despite referred as a physical exchange, the NYSE makes use of the vast capability of computers as well.

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