New York Stock Exchange - NYSE

What Does New York Stock Exchange - NYSE Mean? A stock exchange based in New York City, which is considered the largest equitiesbased exchange in the world based on total market capitalization of its listed securities. Formerly run as a private organization, the NYSE became a public entity in 2005 following the acquisition of electronic trading exchange Archipelago. The parent company of the New York Stock Exchange is now called NYSE Euronext, following a merger with the European exchange in 2007. Also known as the "Big Board", the NYSE relied for many years on floor trading only, using the open outcry system. Today, more than half of all NYSE trades are conducted electronically, although floor traders are still used to set pricing and deal in high volume institutional trading.

Business and Industry, 1817 The New York Stock and Exchange Board was formed on March 8, 1817. The name was shortened to The New York Stock Exchange (NYSE) in 1863. The NYSE is home to more than 2,800 companies whose combined value exceeds $15 trillion. The stocks traded at the exchange are face-to-face trades. The exchange has experienced a few times that it had to close its doors, including the beginning of World War I and the September 11, 2001, terrorist attack. Black Thursday, October 24, 1929, signaled the beginning of a new development for the stock exchange in which it was forced to implement new recovery systems in case of a "crash." In 1934, the exchange was registered as a

national securities exchange with the United States Securities and Exchange Commission. In the beginning The New York Stock Exchange's origin can be traced all the way back to the signing of the Buttonwood Agreement on May 17th, 1792. That agreement was struck by a group of 24 [2122:New York City: stockbrokers and merchants at 68 Wall Street, under a buttonwood tree. Originally, there were five securities traded in New York City with the first listed company on the NYSE being none other than the Bank of New York. National Securities Exchange On October 1, 1934, the NYSE registered as a national securities exchange with the U.S. Securities and Exchange Commission. The Governing Committee was the primary governing body until 1938, at which time the exchange hired its first paid president and created a 33-member board of governors. In 1971 the exchange was incorporated as a not-for-profit corporation, and in 1972 the members voted to replace the board of governors with a 25-member board of directors. That newly formed board was equipped with 12 representatives, a chairman and CEO representing public interest, and 12 representatives from the securities industry. Still a powerhouse Today, the New York Stock Exchange (NYSE) is the second largest stock exchange in the world. Leading up to 1996, it was the biggest exchange until its trading volume was exceeded by that of National Association of Securities Dealers Automated Quotations (NASDAQ). The NYSE is now a for-profit business. The transformation into a for-profit organization

occurred when the fully electronic stock exchange Archipelago merged in late April of 2005. One can find the main building of the New York Stock Exchange, Inc., located at 18 Broad Street, at the corner of Wall Street, on the south side of Wall Street, in New York City, New York. On May 17, 1792, twenty-four stockbrokers gathered outside 68 Wall Street under a buttonwood tree to sign an agreement that would establish the rules for buying and selling bonds and shares of companies. The Buttonwood Agreement, as it is known, is so named because the tree served as the regular meeting place for these pioneers of Wall Street. The signers of the Buttonwood Agreement drafted their first constitution on March 8th, 1817, and named their nascent organization the New York Stock & Exchange Board. In 1863, this name was shortened to its modern form, the New York Stock Exchange, which became known as the NYSE, one of the best-known financial industry brands in the world. Membership on the NYSE has been held as a valuable property since 1868. Until the NYSE went both electronic and public in April 2006, the exchange was a membership-only organization. You could only join the NYSE by purchasing existing seats, which were limited to a total of 1,366. Merging with the already publicly-traded Archipelago electronic stock exchange, the new company was called the NYSE Group, Inc., and the seats of the NYSE translated into shares of stock which are now traded under the ticker symbol NYSE: NYX. In 2008, NYSE Euronext welcomed the historic American Stock Exchange into the world s largest and most liquid exchange group. Originally called the "curb market" because its brokers traded outdoors in the street, the Amex has been at the forefront of the U.S. financial markets over the course of two centuries

NewYork Stock Exchange Simon Fieldhouse

NewYork Stock Exchange Wall Street Manhatta

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New Yourk Stock Exchange

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Wall Street

The origin of the NYSE can be traced to May 17, 1792 when the Buttonwood Agreement was signed by twenty-four stock brokers outside of 68 Wall Street in New York under a buttonwood tree. On March 8, 1817 the organization drafted a constitution and renamed itself the "New York Stock & Exchange Board". This name was shortened to its current form in 1863. Anthony Stockholm was elected the Exchange's first president.

U.S. Sec Commerce Donald L. Evans rings opening bell NYSE April 23 2003

The Exchange was closed shortly after the beginning of World War I (July 1914), but it was re-opened on November 28 of that year in order to help the war effort by trading bonds.

On September 16, 1920, a bomb exploded outside the NYSE building on Wall Street in a terrorist attack, killing 33 people and injuring more than 400. The perpetrators were never found. The NYSE building and some buildings nearby, such as the JP Morgan building, still have marks on their facades caused by the bombing.

The Black Thursday crash of the Exchange on October 24, 1929 and the sell-off panic which started on Black Tuesday, October 29, are often blamed for precipitating the Great Depression. In an effort to try to restore investor confidence, the Exchange unveiled a fifteen-point program aimed to upgrade protection for the investing public on October 31, 1938.

On October 1, 1934, the exchange was registered as a national securities exchange with the U.S. Securities and Exchange Commission, with a president and a thirty-three member board. On February 18, 1971 the not-for-profit corporation was formed, and the number of board members was reduced to twenty-five.

On October 19, 1987, the Dow Jones Industrial Average fell 22.6%, one of the largest one-day declines in recorded stock market history. It has been dubbed "Black Monday."

Following a 554.26 point drop in the Dow Jones Industrial Average (DJIA) on October 27, 1997, officials at the Exchange for the first time invoked the "circuit breaker" rule to stop trading. This was a very controversial move and prompted a quick change in the rule; trading now halts for an hour, two hours, or the rest of the day when the DJIA drops 10, 20, or 30 percent, respectively. In the afternoon, the 10 and 20% drops will halt trading for a shorter period of time, but a 30% drop will always close the exchange for the day. The rationale behind the trading halt was to give investors a chance to cool off and reevaluate their positions (see the October 27, 1997 mini-crash).

The first central location of the NYSE was a room rented for $200 a month at 40 Wall Street in 1817.

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The NYSE was closed from September 11 until September 17, 2001 as a result of the September 11, 2001 attacks.

On September 17, 2003, NYSE chairman and chief executive Richard Grasso stepped down as a result of controversy concerning the size of his deferred compensation package. He was replaced as CEO by John Thain, the former President of Goldman Sachs Group Inc.

On April 21, 2005, the NYSE announced its plans to acquire Archipelago, in a deal that is intended to bring the NYSE public.

On December 6, 2005, the NYSE's governing board voted to acquire rival Archipelago and become a for-profit, public company.

John Shepard Reed is the Chairman of the New York Stock Exchange. He was previously Chairman and CEO of Citicorp, Citibank, and post-merger, Citigroup.

NASDAQ
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NASDAQ is a telecommunications network where trading takes place electronically. Market makers buy or sell shares on behalf of their clients. Unlike dealers, they actually own their own stock, which helps them conclude deals in a matter of seconds. There are over 500 market maker firms trading on NASDAQ. The exchange was established in 1971 as the world's first electronic market. NASDAQ Composite is the main index on the exchange.

NASDAQ was started in 1971 by the NASD, or National Association of Security Dealers, in order to provide a place for the trading of stocks that couldn't meet the listing requirements of the American and New York stock exchanges.