What is the New York Stock Exchange? [NYSE]

When we hear about the purchase and exchange of shares, generally one of the most present references in the collective imagination is the New York Stock Exchange.

The Big Apple is the place that every stockbroker wants to work with, as it is one of the most traded stock exchanges in the world and where the most important daily actions are carried out.

Do you want to know a little more about the NYSE? Here are some things you should know about her

The History of the New York Stock Exchange

One fact to highlight about the New York Stock Exchange is that, despite having started its history more than 200 years ago, today it continues to have a great force among the stock markets around the world, because that is where it is They carry out the most outstanding operations not only in North America, but also globally.

In 1792 the New York Stock Exchange, or New York Stock Exchange, was officially founded thanks to the work of 24 stock brokers who set out to sign an agreement known as the Buttonwood Agreement, within Wall Street.

Little by little, these 24 stock brokers were delineating the way in which the stock market would operate, forming a centralized exchange that would deal with the nascent stock market in the USA.

It was thanks to them that the requirement to have the work of an auctioneer and to implement a commission rate for the exchange of products such as tobacco was eliminated.

Much of the work of the early stockbrokers was focused on proposing improvements for the exchange of government goods. With this mission in mind, and after a joint effort that laid the foundations of a formal organization, on March 8, 1817, the New York Stock & Exchange Board was announced, which would later be known only as the New York Exchange, or NYSE. This fact marked the positioning of New York as the center of commercial operations in the United States, taking the position away from Philadelphia.

Over time, as well as with the advent of technological advances that facilitated communication, more and more people from other states were joining the NYSE, but this also led to membership becoming something exclusive to which very few they had access.

It wasn’t until 1865 that the NYSE found a permanent home at 11 Wall Street; With a historical legacy in tow, the building was declared a historical monument in 1978.

How does the New York Stock Exchange work?

One of the primary functions of companies that are listed on the New York Stock Exchange is to increase their capital. Once a successful registration is completed, a company’s stock shares become an asset available for public exchange.

Thus, investors or agents who intend to invest in the stock market decide what is the next step to achieve their objective, either by buying or selling shares through exchange houses.

Currently, trading is fully automated, except for the occasional rally in stocks. One piece of information for which the New York Stock Exchange is known is the speed with which all movements occur and the agility required for decision-making, since these can occur in just one second; meanwhile, manual operations may take a few more seconds.

Who are the members of the NYSE?

There are different positions that can be occupied within the New York Stock Exchange, among which are:

  1. Floor brokers: These are in charge of executing the movements indicated by the agents, receiving in exchange a commission for the operation.
  2. Commission brokers: They buy and sell shares at the request of their clients
  3. Stock brokers: These work autonomously, since they do not depend on a particular company, and all the operations they carry out are carried out on their own behalf.
  4. Balance agent: Your job is to buy balances at a lower price than the common
  5. Arbitrageurs: Their job is to monitor stock prices on different stock exchanges
Photo: Shutterstock

When is the NYSE closed?

Although the common belief is that the stock market does not rest, there are days when it suspends work, for the next few years, the NYSE is expected to remain closed for the following days:

Thanksgiving Day

In 2021, the exchange will be closed on November 25; In addition, the NYSE has a tradition of closing operations the following Friday at 1:00 pm

New Year’s Day

In 2022, the NYSE will begin its first day of suspensions on December 31, unlike last year when they did on January 1.

Independence Day (July 4)

In 2021, it will be July 5 when United States Independence Day is officially celebrated within the NYSE.

Martin Luther King Jr.Day

For 2022, the NYSE will close on January 17, while in 2021 the designated date was January 18.

Christmas day

It will be on December 24, 2021 when the New York Stock Exchange suspends its operations to celebrate Christmas.

Holy Friday

On April 2, 2021, the celebration for Good Friday will be commemorated within the NYSE.

Memorial Day

On May 31, Memorial Day will be celebrated on the NYSE.

Working day

Labor Day will be commemorated within the NYSE on September 6, 2021.

Washington Birthday

The New York Stock Exchange will celebrate the birth of George Washington, the first president of the United States, on February 15, 2021.

What are the indices that make up the NYSE?

The indices that make up the New York Stock Exchange are:

  1. Dow Jones: The oldest industrial stock index in the world.
  2. NASDAQ100: Does not include financial securities; instead, It includes the 100 stocks of the most important companies in the industry sector.
  3. SP 500: It is one of the most important indices, and is considered the most representative of the market.
  4. NASDAQ COMPOSITE: This index includes more than 5,000 companies from the United States and the rest of the world.

New York Stock Exchange Hours

The opening and closing bell is given every business day; NYSE hours of operation are Monday through Friday from 9:30 am to 4:00 pm Eastern time. Since 1870, it has become the custom of inviting important personalities to give the opening bell.

New York Stock trading chart and candlestick chart for financial investment concept.  Abstract financial background.
Photo: Shutterstock

FAQs

How can someone invest in the NYSE?

You can invest in the NYSE through stocks or exchange-traded funds; the recommended process to follow is:

  1. Choose a platform that offers access to all the securities you want to exchange.
  2. Open a stock exchange account: These are usually connected to an external bank account.
  3. Deposit the funds: the account will only work if you have sufficient funds.
  4. Buy shares: for this, it will be necessary to select the type of securities, markets or companies available.
  5. Monitor investments: through the account created on the platform, all movements made can be observed.

How do you buy stocks on the NYSE?

Experts recommend taking the following steps:

  1. Choosing an online stockbroker
  2. Investigate which shares you want to buy
  3. Reach a decision as to the number of shares to buy
  4. Choose the type of transaction or purchase to be made
  5. Optimize the equity portfolio

What companies are listed on the New York Stock Exchange?

What are the requirements for listing on the New York Stock Exchange?

For to be able to quote in the Bag from New York, companies must have a minimum of 400 shareholders who own more than 100 shares. In addition, they must have from 1.1 million shares that are listed in bag, as well as a value market share of $ 40 million.

How many bags are there in New York?

  1. NYSE
  2. NASDAQ

conclusion

With a history of more than two centuries, the New York Stock Exchange ranks as one of the most prominent in the world, so access to it is extremely exclusive and only companies have access to securities exchanges with public actions of more than $ 40 million dollars.

Source: Investopedia.com / fxcm.com /nerdwallet.com /muyfinanciero.com

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