Presentation On New York Stock Exchange

By GAUTAM V

Profile of NYSE
Location Founded Owner CEO Currency No. of Listing Co. Market Capital Website New York city U.S. March 8, 1817. NYSE Euronext Duncan L. Niederauer US $ 2800 US$ 13.39 Trillion ( Dec 2010) www.nyse.com

Stock Exchange:It is an association or organization or body of individuals whether incorporated or not, but established for the purpose of regulating & controlling in dealing with securities.

Origin of Stock Market

Back to over 200year ago U.S. decided to finance the war by selling the bonds, and government notes promising to payout at profit at a later date. At the same time Private Bank began to raise money by issuing stock or shares of the company to raise their own money.

History of NYSE
NYSE started in 1792.

At the beginning only five securities were traded.

In 1817, the rules & regulations were developed. Anthony Stockholm was elected the first president of

exchange. First set trading hours were established in 1873. Dow Jones started with a starting value of 90. Crashes over the years affected the NYSE.

A Brief Timeline of Important Events in the History of the NYSE

1792 - Twenty-four brokers and merchants gathered on

Wall Street to sign the Buttonwood Agreement. The NYSE is born! 1792 - Bank of New York becomes the first listed company on the NYSE. 1903 - April 22, the NYSE moved into 18 Broad Street. (This building is still in use today.) 1918 - The pneumatic vacuum tube system is made for sending tickets to and from different departments. 1929 - October 23: Black Thursday. October 26: Blue Monday (Market loses $26 billion in value.)

Continued: 1953 - October 10: Trade volume on the NYSE

reaches 900,000 shares, this marks the last day that the daily volume of the NYSE is under 1 million shares. 1967 - NYSE admits its first woman member. 1987 - October 19: Black Monday (Market drops 508 points, the largest one-day drop in history.) 1992 - May 17: the NYSE celebrates its 200th anniversary. 1996 - May 7: The highest price ever paid for a membership is $1,450,000

Major Companies
1.ExxoMobil 6. Wal-Mart

Corp(XOM) Market Cap: $329B 2. Petro China (PTR) Market Cap: $237B 3. BHP Billiton(BHP) Market Cap:$222B 4.Petrobras (PBR) Market Cap:$210B 5.HSBC Holdings (HBC) Market Cap:$206B

Stores(WMT) Market Cap:$203B 7.China Mobile (CHL) Market Cap:$191B 8. Royal Dutch Shell plc(RDS.A) Market Cap: $190B 9. BHP Billiton plc (BBL) Market Cap:$187B 10. BP Plc (BP) Market Cap: $186B

Functions: Established for the purpose of assisting, regulating and controlling business of buying, selling and dealing in securities . Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities. Provides a physical location for buying and selling securities that have been listed for trading on that exchange. Establishes rules for fair trading practices and regulates the trading activities of its members according to those rules. The exchange itself does not buy or sell the securities, nor does it set prices for them.

Crashes and Effects on the Market

In Oct 24, 1929 was known as a Black Thursday stock prices fell sharply by a volume of about 13 million shares. Five days later, October 29th, 1929, the market crashed by a volume of over 16 million shares. At the time this was the highest volume drop that was not to be matched for 39 years. This crash marked the beginning of the Great Depression.

Continued :Reason behind the crash: Stocks were overpriced.

Federal Reserve policies were causing disagreement

and problems. Many people had an overconfidence from the 20's which influenced a search for easy money and made many people greedy. Many people took their chances in the market by "buying on a margin". This means that they bought stocks on borrowed money, money they did not have. They would be making money as long as their stock price increased, but if the prices fell then they would be

Continued:Some explanations for the causes of the crash: Computer trading securities-many analysts say this is the cause. Computers in large investing companies were programmed to order large numbers of stocks when certain market trends prevailed.
Liquidity- trading mechanisms in the stock market were

unable to deal with such a large flow of sell orders.

Trade and Budget deficits-trade and budget debts during

the third quarter of 1987 might have led investors into thinking that these debts would cause the crash.

Conclusion: New York will be the virtual centre of the

American Stock Exchange.

Over 2800 listed companies in the region by

2012.
At least 100 companies cross listed with leading

equity markets in Africa, London and Hong Kong Stock Exchanges.

Availability of venture capital from at least 15

funds, 5 of which are quoted on the exchange.