Wall Street: New York Stock Exchange (NYSE) Explained

Introduction

The New York Stock Exchange (NYSE), also known as Wall Street, is the most prominent stock exchange in the world.

Founded in 1792, the NYSE is an auction market in which stocks and other securities are traded.

Key Information

History

The NYSE was founded in 1792 by 24 stockbrokers under a buttonwood tree on Wall Street.

It has since become the largest stock exchange in the world.

Location

The NYSE is located at 11 Wall Street in Lower Manhattan, New York City.

The building is a National Historic Landmark.

Trading Hours

The NYSE is open for trading from 9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday.

The exchange is closed on weekends and federal holidays.

Indices

The NYSE tracks several stock indices, including the Dow Jones Industrial Average (DJIA), the S&P 500, and the Nasdaq Composite.

These indices measure the performance of different segments of the stock market.

Companies Listed

Over 2,300 companies are listed on the NYSE.

These companies represent a wide range of industries, including technology, healthcare, finance, and consumer goods.

How the NYSE Works

Trading Process

Orders to buy and sell stocks are placed with a broker, who then routes the orders to the exchange.

The orders are matched with each other at the best price possible.

Clearing and Settlement

Once an order is executed, it must be cleared and settled.

This process ensures that the buyer receives the stock and the seller receives the payment.

Importance of the NYSE

Economic Indicator

The performance of the NYSE is often seen as a barometer of the overall health of the economy.

When the market is rising, it is typically a sign that the economy is doing well.

Capital Formation

The NYSE plays a vital role in capital formation.

Companies can raise capital by selling stocks on the exchange, which they can then use to invest in their businesses.

Conclusion

The New York Stock Exchange is a vital part of the global financial system.

It is the largest stock exchange in the world and plays a key role in capital formation and economic growth.