The New York Stock Exchange is not only one of the oldest however likewise the biggest stock exchange in the world, by the United States dollar value, of its listed securities. Till October 2008, the combined market price of all the listed US companies in this exchange, was USD 10.1 trillion.
The New York Stock Exchange (NYSE) was developed in 1792 and is the very first exchange in America. This exchange included lots of stockbrokers who had a new concept for arranging the mayhem of trading stocks that currently existed. In an agreement to organize this exchange was formed. Today the NYSE lists over 2,700 securities and is the world’s largest stock exchange by dollar volume, though it is the fourth largest in terms of company listings.
To trade as a brokerage company at the NYSE, one needs a trading ‘seat’, the term dating to times when members actually traded from seats. It is even more of a subscription of the exchange, that permits you to trade and it has to be purchased by the interested business. The expense of a seat differs and might vary from USD 50,000 dollars to USD 1,000,000 or more. The highest quote paid till date is USD 4,000,000, in 2005. Now, the exchange also offers the right of leasing a seat to an individual. Only, money can not ensure a seat. The approaching company should please some strict prerequisites and guarantee to follow an honest code. The seats are made available with an auction. Now, the overall variety of seats is 1366.
The advantage of having a seat is that you can get direct access to the exchange market. Otherwise, you have the option to operate through brokers. The system is made to help with stock trading of companies, provided on the exchange in a constant auction format. It is a hybrid market and it provides the most thorough and diverse range of investment options worldwide.
Investigating More About New York Stock Exchange
Things altered in January 2007 and electronic trading was offered as an option. Ever since, more than 80 % of trade at the NYSE, happens through the electronic path. With the advent of e-commerce, this is a simpler and sensible option for traders in New York and rest of the world. Some extremely expensive, premier stocks are kept from electronic trade. They need to be purchased and offered by the traditional auction route. The most essential indicator of the health of the secondary stock market is the NYSE composite index. It is an indicator of the marketplace capitalization of different companies, noted at the exchange. This index is constantly computed, every half an hour, according to market developments.
Hence, the New York Stock Exchange, listed with more than 2000 premier companies all over the world, is a melting pot of world economy and an indicator of the financial pulse of the globalized industrial world.