new york stock exchange essay

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New york stock exchange (nyse): definition, how it works, history.

What Is the New York Stock Exchange (NYSE)?

The New York Stock Exchange (NYSE) is a stock exchange located in New York City that is the largest equities -based exchange in the world, based on the total market capitalization of its listed securities.

Formerly run as a private organization, the NYSE became a public entity on March 8, 2006, following the acquisition of electronic trading exchange Archipelago . In 2007, a merger with Euronext —the largest stock exchange in Europe—led to the creation of NYSE Euronext, which was later acquired by Intercontinental Exchange, Inc. ( ICE ), the current parent of the New York Stock Exchange.

Key Takeaways

• The New York Stock Exchange (NYSE), which dates back to 1792, is the largest stock exchange in the world based on the total market capitalization of its listed securities.
• It was the first formalized stock exchange established in the United States.
• Many of the oldest publicly traded U.S. companies are listed on the "Big Board," the nickname for the NYSE.
• The Intercontinental Exchange (ICE) now owns the NYSE, having purchased the exchange in 2013.

Understanding the New York Stock Exchange (NYSE)

Located on Wall Street in New York City, the New York Stock Exchange —also known as the " Big Board "— consists of one trading floor for equities and another for the NYSE American options exchange. The main building located at 18 Broad St. and the one at 11 Wall St. were both designated historical landmarks in 1978.

The NYSE relied for many years on floor trading only, using the open outcry system. Many NYSE trades have transitioned to electronic systems relying mainly on designated market makers to conduct both the physical and automated auctions. Quotes offered by DMMs are on par with what floor traders and other market participants offer.

Currently, the NYSE is open for trading Monday through Friday from 9:30 a.m. to 4:00 p.m. ET. The stock exchange is closed on certain U.S. holidays. When these fall on a Saturday, the NYSE is sometimes closed the preceding Friday. When holidays fall on a Sunday, the NYSE may be closed the following Monday.

The NYSE is the world's largest stock exchange by total market capitalization of listed companies , which is estimated to be $24.6 trillion as of Mid-2022.

The NYSE's Opening and Closing Bells

The opening and closing bells of the exchange mark the beginning and end of the trading day. The opening bell is rung at 9:30 a.m. ET, and the closing bell is rung at 4:00 p.m. ET, closing trading for the day. But trading days did not always begin and end with a bell—the original signal was actually a gavel. During the late 1800s, the NYSE changed the gavel to a gong. The bell became the official signal for the exchange in 1903 when the NYSE moved to 18 Broad St.

Prior to 1995, the exchange's floor managers rang the bells. But the NYSE began inviting company executives to ring the opening and closing bells on a regular basis, which later became a daily event. The executives are from companies listed on the exchange, who sometimes coordinate their appearances with marketing events, such as the launch of a new product or innovation, or a merger or acquisition .

Sometimes, other public figures, such as athletes and celebrities, ring the bell. Some of the more notable figures to ring it include singer/actor Liza Minnelli, Olympic medalist Michael Phelps, and rapper Snoop Dogg. In July 2013, United Nations Secretary Ban Ki-moon rang the closing bell to mark the NYSE joining the U.N. Sustainable Stock Exchanges Initiative.  

The New York Stock Exchange passed the milestone of one million shares traded in a single day in 1888. By 2022, more than five billion shares were changing hands on the NYSE during a normal business day.

History of the NYSE

The New York Stock Exchange dates back to May 17, 1792. On that day, 24 stockbrokers from New York City signed the Buttonwood Agreement at 68 Wall St. The New York Stock Exchange kicked off with five securities, which included three government bonds and two bank stocks.

Thanks to the NYSE's head start as the major U.S. stock exchange, many of the oldest publicly traded companies are on the exchange. Consolidated Edison ( ED ) is the longest-listed NYSE stock, joining in 1824 as the New York Gas Light Company. Along with American stocks, foreign-based corporations can also list their shares on the NYSE if they adhere to certain listing standards.

A series of mergers has given the New York Stock Exchange its massive size and global presence. The company started as NYSE before merging with the Euronext and adding the American Stock Exchange. NYSE Euronext was purchased in an $11 billion deal by the Intercontinental Exchange (ICE) in 2013. The following year, Euronext emerged from ICE via an initial public offering (IPO), but ICE retained ownership of the NYSE.

A Few Notable Dates in the NYSE’s History

• Oct. 24, 1929: The most devastating stock market crash in the history of the U.S. began on Black Thursday and continued into a sell-off panic on Black Tuesday, Oct. 29. It followed the crash of the London Stock Exchange, which took place in September and signaled the onset of the Great Depression , which affected all of the industrialized countries in the West.  
• Oct. 1, 1934: The NYSE registered as a national securities exchange with the SEC.
• Oct. 19, 1987: The Dow Jones Industrial Average (DJIA) dropped 508 points or a loss of 22.6% in a single day.
• Sept. 11, 2001: Trading was shut down for four days at the NYSE following the 9/11 attacks and resumed on Sept. 17. About $1.4 trillion was lost in the five days of trading following the reopening—the biggest losses in NYSE history.
• October 2008: NYSE Euronext completed the acquisition of the American Stock Exchange for $260 million in stock.
• May 6, 2010: The DJIA suffered its largest intraday drop since the crash of Oct. 19, 1987. It dropped 998 points in what is known as the 2010 Flash Crash .
• Dec. 20, 2012: ICE proposed to buy NYSE Euronext in a stock swap worth $8 billion.
• May 1, 2014: The NYSE was fined $4.5 million by the Securities and Exchange Commission in order to settle charges of market rule violations.
• May 25, 2018: Stacey Cunningham became the first female president of the NYSE.
• March 16, 2020: The onset of COVID-19 pandemic fears led to the DJIA suffering its largest daily point drop in history as it fell 2,997.10 points from the previous close. Percentage-wise, it was the third worst day ever.
• March 23, 2020: The NYSE temporarily closed floor trading due to the COVID-19 pandemic , opting to continue its operations electronically.
• March 24, 2020: The DJIA recorded its largest one-day point gain on expectation of a stimulus relief bill . Percentage-wise, it was the fifth best day ever.

Who Owns the New York Stock Exchange?

The NYSE was acquired by the Intercontinental Exchange (ICE) group in 2013.

Where Is the Oldest Stock Exchange in the World?

The Amsterdam Stock Exchange (AEX) in the Netherlands is the oldest stock exchange, established in 1602 by the Dutch East India Company. Today the Amsterdam exchange is owned by Euronext .

What Is the Largest Stock Exchange in the World?

The New York Stock Exchange (NYSE) remains the largest stock exchange in the world in terms of the market capitalization of the companies listed on it. The NASDAQ ranked second, followed by the Shanghai Stock Exchange , and the Euronext.

The New York Stock Exchange (NYSE) is the oldest and most influential securities exchange in the United States, and is the largest stock exchange in the world by total listed company market cap. With humble beginnings under a buttonwood tree in Manhattan, the NYSE is now a landmark that epitomizes Wall Street. Today, the NYSE lists the most important publicly-traded American companies and is still seen as the premier venue for stock trading.

NYSE Group. " New York Stock Exchange/Archipelago Holdings Merger Complete ."

Intercontinental Exchange. " IntercontinentalExchange to Acquire NYSE Euronext For $33.12 Per Share in Stock and Cash, Creating Premier Global Market Operator ."

National Park Service. " New York Stock Exchange ."

New York Stock Exchange. " Holidays & Trading Hours ."

Statista. " Largest Stock Exchange Operators Worldwide by Market Capitalization of Listed Companies ."

New York Stock Exchange. " About the NYSE Bell ."

United Nations News. " Ban rings Wall Street closing bell, welcomes NY Stock Exchange to UN initiative ."

New York Stock Exchange. " Daily U.S Equity Matched Volumes ."

Library of Congress. " Wall Street and the Stock Exchanges: Historical Resources ."

New York Stock Exchange. " Facebook Post - May 16, 2017 ."

New York Stock Exchange. " Overview of NYSE Quantitative Initial Listing Standards ," Pages 1-3.

NYSE Euronext. " NYSE Euronext to Acquire the American Stock Exchange ."

Intercontinental Exchange. " IntercontinentalExchange Completes Acquisition of NYSE Euronext ."

Intercontinental Exchange. " Intercontinental Exchange Announces Closing of Euronext Initial Public Offering ."

Library of Congress. " Black Monday Stock Market Crash ."

Federal Reserve Bank of St. Louis. " Stock Market Crash of 1987 ."

U.S. Securities and Exchange Commission. " Findings Regarding the Market Events of May 6, 2010 ," Page 1.

U.S. Securities and Exchange Commission. " SEC Charges NYSE, NYSE ARCA, and NYSE MKT for Repeated Failures to Operate in Accordance With Exchange Rules ."

Intercontinental Exchange. " Intercontinental Exchange Names Stacey Cunningham as New President of NYSE Group ."

CNBC. " Dow Drops Nearly 3,000 Points, as Coronavirus Collapse Continues; Worst Day Since ’87 ."

Intercontinental Exchange. " New York Stock Exchange to Move Temporarily to Fully Electronic Trading ."

CNBC. " Stock Market Live Tuesday: Dow Soars 2,100 Points, Biggest Jump in 80 Years, Stimulus Close ."

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NYSE: The New York Stock Exchange

The NYSE was first housed at a rented room at 40 Wall Street in 1817. A 5-story building at 10 Broad Street opened in 1865. It was enlarged and remodeled during the 1870s and 1880s, then was demolished in 1901 to make way for the current building. The new Exchange building at 18 Broad Street opened in 1903. Styled in the classical-revival manner popular at the time, it was designed by George B. Post, a well-known architect and engineer. The sculptor John Quincy Adams Ward designed the pediment. The eleven figures in the pediment are emblems of American commerce and industry.

The central figure symbolizes integrity, bordered by figures representing sources of wealth. Other figures personify agriculture, mining, science, industry and invention. The view of lower Manhattan from the NYSE building includes the intersection of Nassau, Broad and Wall Streets and looks directly on Federal Hall, the historic site of George Washington’s inauguration in 1789. It also includes Trinity Church at the end of Wall Street. The Main Floor occupies 36,000 square feet with a ceiling of 86 feet, including the Garage, Blue Room and Expanded Blue Room.

It consists of 17 trading posts, 340 trading positions and 3,000 people who work on the trading floor. Trowbridge & Livingston designed a 23-story building on 11 Wall Street. The Garage was added as a second trading room when the Exchange opened in 1922. 20 Broad Street opened in 1956. Added as a third trading room, the Blue Room opened in 1969 and was expanded in 1988. The Garage, Blue Room, and the Expanded Blue Room each measure 7,000 square feet. Each trading post represents the auction market for many different securities.

Buy and sell orders are received on the terminals and executed in the open market. There are nearly 3,000 NYSE-listed companies and about 400 of them are non-US listed companies. There are more than 10,000 institutions investing in the NYSE. The total dollar value of the corporate size of all NYSE listed companies is more than $17. 3 trillion. The broker booths occupy the perimeter of the floor and are owned and operated by member firms. The NYSE trading floor contains 1,500 booth spaces. There are about 500 member firms in the NYSE.

NYSE member firms employ 100,000 registered workers. Originally, only members and their guests were allowed to view the trading floor from the balcony known as the Members Gallery, high above the floor. The media and guests of the NYSE now use it. The Ramp, NYSEs new, Three-Dimensional Trading Floor (3DTF) is a computer-generated trading floor representation used for operations control, information sharing and information distribution. Its the first large-scale virtual reality environment for business applications.

The 3-D image is depicted on nine 25-inch PixelVision high-resolution, flat-panel monitors, including three monitors that allow the user to understand specific activities. The Advanced Trading Floor Operations Center , which houses the 3DTF, utilizes 6 Silicon Graphics high-powered Onyx2 graphics visualization supercomputers, 43 PixelVision high-resolution, flat-panel monitors, highly advanced software and innovative application code. The Interactive Education Center provides visitors with a technology-driven, user-friendly learning experience.

The center features information booths, interactive stock trading exhibits, news feeds, stock prices and a view of the trading floor. The trading floor hosts 8,000 phone circuits, 5,000 electronic devices and 200 miles of fiber optic cable. 1,100 tons of air conditioning are needed daily on the NYSE trading floor. About 3,500 kilowatts of power are consumed daily on the NYSE trading floor. One of the most familiar features of the New York Stock Exchange, the bell’s loud ring signals the beginning and ending of trading each day.

There is one large bell in each of the four trading areas of the NYSE. The bells are operated synchronously from a single control. The G. S. Edwards Company of Norwalk, Connecticut manufactured the bells, measuring 18 inches in diameter. In the late 1980s, the NYSE decided to refurbish the bells and have an extra bell made as a back up. While Edwards agreed to make a special replica for the NYSE, an older, larger bell was discovered in a crawl space above the main trading floor.

Measuring 24 inches in diameter, this 1903 bell had most likely been put away because it was too loud, even for the New York Stock Exchange. After being cleaned and refurbished, this giant bell was toned down. It now gleams on a platform above the trading floor, ready for use should it ever be called into action. The bell is a part of the NYSE’s heritage, and it is considered an honor to be invited to ring the opening or closing bell. The constant development of this high-quality and cost-effective self-regulated marketplace has secured the confidence of almost 60 million individual investors in the US.

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The New York Stock Exchange: Opportunity Inequality Essay

Introduction, stock markets and inequality of opportunity, nyse and the rising disparity of opportunity, revising the thesis, revisiting arguments and implications of the research, relevance of the material, works cited.

The purpose of this paper is to describe and analyze the inequality of opportunity in the New York Stock Exchange with a goal of identifying the reasons behind the opportunity disparities between the rich and the poor in the concerned market.

The research problem is that overtime the inequalities of the US are getting worse, and the gap between the lower-income earners (representing majority of the population) and the bourgeoisie are escalating nowadays, whilst a sturdy financial market like the New York Stock Exchange is turning into money-making engine for the affluent (who represent only a minority). Thus, there are sharp inequalities of opportunities offered in the stock market to the relevant segmentations of the society.

This is a huge problem for the society, and it is significant for people to be aware of it because this allows bourgeoisie to have enormous control over other’s lives, destabilize the justness of political institutions, challenge the evenhandedness of fiscal system, cause living standards of majorities to fall, creating job losses, social chaos, and deterioration of law and order.

The intense class conflict created by the stock markets became apparent during the Occupy Wall Street protests (Stiglitz 12), which first started in the US, but later spread to parts of Europe as well (Stiglitz 10). The national notion of equal opportunities for all is gradually becoming a myth due to the extreme disproportionately (Stiglitz 60), and the market system is corroding the fundamental humanitarian values (Stiglitz 24).

The inequalities were much lesser in the 1980s because fewer multinationals controlled the economy and corporate aggression was not excessively interruptive – at present; greater austerity means top level corporate executives and bankers are charged smaller taxes, whilst the bigger burdens are imposed on people through declining public spending and higher public taxes (Piketty et al. 28).

There are rising criticisms about the New York Stock Exchange and the way in which it operates and regulates the financial system; it is frequently suggested that NYSE uses mechanisms to keep cost of accessing the market higher – as a result, the corporate giants and other affluent individuals are able to access and manipulate the market freely (Turner). However, due the higher market access cost, the new entrants and the small or medium-sized businesses are barred from operating and sustaining in the market over the longer period, giving the stronger players an exclusive power to grasp greater market share.

It is important to note that inequality in the US market is deteriorating persistently, and the topmost rich people (representing one percent of the population) are generating more than one million dollars annually, which is thrice as much as the income they earned back in1980s – this part of the population takes above 20 percent of the national income (Long). On the other hand, the poorest people (representing fifty percent of the population), earned around sixteen thousand dollars back in 1980s, whereas now, surprisingly, they take home only twelve percent of the national income (Long):

In addition, whilst the earnings of the richer people have risen dramatically, this was not the case for the poorer part of the society; in 1980, the ‘top one percent’ earned around $344,000, which rose to $1,000,000 in 2014 – conversely, the ‘bottom fifty percent’ earned around $21,000 in 1980, which increased to only $25,000 in 2014:

It has been suggested that whilst both rich and poor were affected by the global financial crisis in the US, the rich recovered faster and became richer through market exploitation, whereas the poor lacked this opportunity and got poorer (Lundeen). Thus, inequality of opportunity is present in NYSE, which is merely worsening day by day and creating a circumstance whereby reversing the broadening gap is becoming nearly impossible.

Inequality of opportunity exists between the rich and the poor in the NYSE because of several reasons (Bor and Galea), which include excessive control from the multinational corporations, manipulations from the market giants (Yellen 51), economic framework, market structure, governmental policies (Owyang and Shell 2), and so on.

Giving significance to inequality of opportunities in the NYSE is essential, as this has huge impact over the society (Stiglitz 83); for example, inequality of wealth deteriorates social order (Galbraith 62), creates job losses, and disturbs equal educational opportunities for all (AQENY 7):

All materials used in this research are relevant, since AQENY, Long, Lundeen, Owyang and Shell, and Turner directly discusses about the opportunity inequality in NYSE, whilst Bor and Galea, Galbraith, Stiglitz, Yellen, and Piketty analyses the implications of the problem. From these sources, the inequality in the NYSE becomes apparent; so, it can be concluded that the crisis can hamper the country extensively.

Opportunity inequality exists in NYSE, and it is highly essential for the government to address and resolve the issue in the upcoming years – not just to prevent social degradation, but also to preserve the American dream.

AQENY. “ Record Setting Inequality: New York’s Opportunity Gap is Wider Than Ever .” AQENY . Web.

Bor, Jacob, and Sandro Galea. “ The Cost of Economic Inequality to the Nation’s Physical Health. ” Boston Globe , 2017. Web.

Galbraith, James. Inequality and Instability: A Study of the World Economy Just before the Great Crisis . Oxford University Press, 2012.

Long, Heather. “ U.S. Inequality Keeps Getting Uglier. ” CNN , 2016. Web.

Lundeen, Andrew. “ The Stock Market and Inequality. ” Tax Foundation . 2014. Web.

Owyang, Michael, and Hannah Shell. “ Taking Stock: Income Inequality and the Stock Market .” Stlouisfed . 2016. Web.

Piketty, Thomas, et al. “ Distributional National Accounts: Methods and Estimates for the United States .” NBER . 2016. Web.

Stiglitz, Joseph. The Price of Inequality: How Today’s Divided Society Endangers Our Future . W.W. Norton & Co, 2012.

Turner, Matt. “ The New York Stock Exchange is Fighting Back against Its Critics. ” Business Insider , 2017. Web.

Yellen, Janet. “Perspectives on Inequality and Opportunity from the Survey of Consumer Finances.” The Russell Sage Foundation Journal of the Social Sciences , vol. 2, no. 2, 2016, pp. 44-59.

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Essay: New York Stock Exchange – Overview

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New York Stock Exchange – Overview

The New York Stock Exchange is known for being one of the ten largest corporations in America. Along with that label is, “Exxon, Ford, General Electric and Wal-Mart.” The New York Stock Exchange is very important to the stock market. The New York Stock Exchange has one of the world’s largest leading exchange groups along with being very diverse. The New York Stock Exchange basically completes the American Stock Exchange. The New York Stock Exchange is also the “third largest United State” marketplace. The New York Stock Exchange is known for being “investor-friendly”. The New York Stock Exchange is also known for protecting the investor’s interest whether it is big or small. The New York Stock Exchange is a well known stock market along with NASDAQ.

The New York Stock Exchange started back around the year 1792. In 1792 in New York City, 24 stockbrokers and merchants from New York City got together and sign the Buttonwood Agreement. The Buttonwood Agreement started off the New York Stock Exchange and to have the New York Stock Exchange’s commitment to every investor and issuers. The New York Stock Exchange was created in 1792 in Wall Street. A historical event of the New York Stock Exchange was that it was first build on May 17, 1792. The New York Stock Exchange was “first incorporated” on February 18, 1971 as a “New York Stock Exchange, Inc.” It was known for being a “not-for-profit corporation”. In March 7, 2006, it was changed to become a “for-profit organization”. Wall Street in New York was known for becoming the first permanent location for the New York Stock Exchange.

Through out the history of the New York Stock Exchange, there have been said that there is a certain pattern towards when the stock exchange will crash. Some people predicts what will be the next time the stock market will crash. But sometimes that pattern does not follow through. Through out the history of America, there have been some significant crashes on the stock exchange. The well known crash for teh New York Stock Exchange and other stock exchanges is the Crash of 1929. During the 1920s, many people in America were buying and borrowing expensive objects. in 1929 alot of people were buying alot of stocks. Because of the continous purchase of stocks, the price of stocks slowly increased and the inflated market demand “outpaced” the increases of the stocks in the “Captial value of business.” Many people tried to sell stocks during the exact same time on October 29, 1929. Because of this, the New York Stock Exchange along with other stock exchanges suddenly crashed, being known as the Crash of 1929. Due to the Crash of 1929, a lot of people lost alot of their money.

There is hardly a difference between the New York Stock Exchange and NASDAQ. In fact, both the New York Stock Exchange and NASDAQ are more similar to each other than they are different. The New York Stock Exchange is older than NASDAQ, being that the New York Stock Exchange started in 1792. NASDAQ began around 1971. When NASDAQ first began, it was not into becoming a stock exchange but more of a electronic quotation system. The difference between the New York Stock Exchange and NASDAQ is how they manage their trades. The New York Stock Exchange is more famous on where they manage their tradings. The New York Stock Exchange manage their tradings in the trading floors in Wall Street. The New York Stock Exchange is more of an “auction market,” meaning both floor traders and floor brokers start on deals. NASDAQ is more of a computerized network. It depends on a computerized network with thousands of computers. NASDAQ has market makers that are in charge of each stock. They are in charge of competing the customer orders for the quotes to be displayed. The New York Stock Exchange is known for having common and bigger companies while NASDAQ is known for having smaller less common companies. Apple Corporation is one of some common companies in NASDAQ. There have been more similarities between the New York Stock Exchange and NASDAQ as the years go by and as each stock markets grow. They are two well known stocks in the stock market.

The New York Stock Exchange was also part of The Great Depression. The Great Depression was known in American History for having the “worst slump” in the American Economy. The Great Depression not only affected the economy in the United States but it also affected stock markets around the world. The Great Depression started around 1929, the same time as the stock market crash of 1929. A lot of things happened that caused the Great Depression but the main reason was the irresponsible purchases that America had made through out the 1920s. Many people in America found a way to purchase expensive materials. Materials that were too expensive were bought but were unable to pay it off. Because of the many people who did not fully pay off their purchases steadily increased, causing trouble in the stock market. This reason was also combined with the “extensive stock market” during the same decade. There was said that there was unbalanced wealth causing the economy to become unstable. Because of the markets crashing, through out the years, stock markets were losing a lot of money causing many people to lose their jobs, homes, and more. The Great Depression only lasted for then years.

After the Great Depression, the stock markets slowly returned back to normal with better purchases through out the world. But another stock market crashed on October 19, 1987. The Dow Jones dropped 508 points, nearly 23 percent. That drop on October 19, 1987 was caused due to Wall Street dealing with the same problems it is with dealing today. This did not last long. In late summer of 1987, the stock market steadily increased along with the increase prices of oil. But two decades later, the stock markets started seeing the market crashing yet again. This time it was worst than the one two decades earlier. In the Autumn of 2008, there were problems in housing and in the credit markets that the stock market started to take a plunge. In late September, the Dow Jones took a massive lost of 2,400 points! Along with that, during that week the Dow Jones dropped 18 percent. The stock markets were decreasing so much that America went into a depression. Many people feared that there was going to be another situation that was similar to the Great Depression from 1929. The economy along with stock markets later improved. Around 2008, the New York Stock Exchange bought the American Stock Exchange in early of 2008. It is said that the stock markets would later improve more late 2010 to mid 2011.

The New York Stock Exchange is open to both private and public companies. Well known stocks that are part of the New York Stock Exchange is Johnson and Johnson (JNJ), Citigroup (C) and Sony Corporation (SNE) along with many other corporations. Mostly common stocks belong to the New York Stock Exchange.

The future of the New York Stock Exchange is hardly unknown, but it is said that there will be improvements for the New York Stock Exchange along with the troubling economy later in the future.

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• The New York Stock Exchange

The New York Stock Exchange traces its origin back 200 years. Centuries of growth and innovation the NYSE remains the worlds foremost securities marketplace. Over the years its commitment to investors has been unwavering and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. The NYSE has grown to become the global marketplace of today. Each day on the NYSE trading floor and auction takes place. Open bid and offers are managed on the trading floor page of NYSE. com by exchange members acting on behalf of institutions and individual investors.

Buy and sell orders for each listed security meet directly on the trading floor in assigned locations. The NYSE trading floor contains 20 posts with more that 400 trading positions. Prices are determined through supply and demand. Stock buy and sell orders funnel through a single location ensuring that the investor no matter how big or small is exposed to a wide range of buyers and sellers. The NYSE is an agency auction market. This means The essential point is that trading at the NYSE takes place by open bids and offers by Exchange members, acting as agents for institutions or individual investors.

A member firm is a company or individual who owns a “seat” on the trading floor. Only member firms are allowed to buy and sell securities on the trading floor. To become a member firm, a company must meet rigorous professional standards set by the Exchange. The number of seats has remained constant, at 1,366, since 1953. Institutional investors are corporations that invest on behalf of individuals and companies. Institutions include pension funds, mutual funds, insurance companies and banks Buy and sell orders meet directly on the trading floor, and prices are determined by the interplay of supply and demand.

In contrast, in the over-the-counter market and the price is determined by a dealer who buys and sells out of inventory. At the NYSE, each listed stock is assigned to a single post where the specialist manages the auction process . NYSE members bring all orders for NYSE-listed stocks to the Exchange floor either electronically or by a floor broker. A broker acts as an agent, representing customer orders to buy or sell stock. There are two main types of floor brokers: commission brokers and independent brokers. Commission Brokers. Commission brokers are employed by brokerage houses, which are members of the NYSE.

A commission broker executes the orders of his firm’s customers. Independent Brokers. Independent brokers work for themselves. Although they are not affiliated with any brokerage house, they handle orders for brokerage houses that do not have full-time brokers, whose brokers are off the floor, or are too busy to handle a specific order. Independent brokers were once referred to as “$2 brokers,” a term coined when they received $2 for every 100 shares they traded. Their fee, paid by commissioned brokers, is called a “floor brokerage. ” This fee is fully negotiable depending on the size and difficulty of the order they are trading.

As a result, the flows of buy and sell orders for each stock is funneled to a single location. This heavy stream of diverse orders is one of the great strengths of the Exchange. It provides liquidity – the ease with which securities can be bought and sold without wide price fluctuations. When an investor’s transaction is completed, the best price will have been exposed to a wide range of would-be buyers and sellers. Each day on the NYSE, an average of over 1 billion shares of stock, worth more than $44 billion, changes hands without a glitch.

However, disputes and controversies occasionally arise. For more than 125 years, NYSE arbitration has been used to resolve disputes between investors and brokers. Arbitration is often viewed as a practical alternative to lengthy and expensive litigation. The New York Stock Exchange also offers mediation as a way to resolve disputes. Mediation is a voluntary process where the mediator meets with the parties to help them reach a settlement. The mediator does not have the power to decide the case. Mediation is not adversarial; there is no record of the mediation.

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New York Stock Exchange mulls 24-hour trading — a move Steve Cohen may welcome

• The New York Stock Exchange is considering going 24/7, the FT reported.
• The exchange polled market participants about the merits of round-the-clock trading, per the outlet.
• Meanwhile, a Steve Cohen-backed startup is seeking SEC approval for a 24-hour exchange.

In a move that may be appropriate for the city that doesn't sleep, as the song goes, the New York Stock Exchange is mulling whether trading should take place around the clock.

The Financial Times reported on Monday that the NYSE's data analytics team had polled market participants about the merits of being open 24 hours a day.

Investors can only trade equities on the exchange between 9:30 a.m. and 4 p.m. ET, while other assets including stock futures, US Treasury bonds, and cryptocurrencies can be bought and sold at any time.

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It's also possible to trade before the market opens from 4 a.m, and after it closes until 8 p.m., although liquidity is generally lower and transaction fees tend to be higher in those periods. Some brokers also allow investors to trade round-the-clock on weekdays.

In its poll, the NYSE asked market participants whether they thought the exchange should be open 24/7, or just 24 hours on weekdays, the FT reported.

It also surveyed them on how investors should be protected during periods of volatility, what its overnight staffing plan should be, and whether respondents thought that "time spent thinking about overnight trading would be better spent on regular market hour trading," per the outlet.

Meanwhile, a startup backed by billionaire Steve Cohen's VC firm Point72 Ventures is seeking SEC approval to launch the world's first 24-hour stock exchange.

Bermuda-based 24 Exchange, which netted $14 million worth of investment from Point72 Ventures and others, aims to bring the non-stop nature of crypto trading — which has captivated retail investors in recent years — to the stock market.

"The same people that trade cryptocurrencies started to trade more stocks because of the GameStop movement and the overall participation of retail that [has] increased significantly," 24 Exchange founder and CEO Dmitri Galinov said in December 2021. "If Elon Musk tweets something on Saturday, people would want to buy or sell Tesla stock."

Watch: What happens when Elon Musk moves markets with a tweet

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Fact check: Trump tells ‘mind-bogglingly nonsensical’ story about the New York Stock Exchange

F ormer President Donald Trump told a story  on Monday in which he claimed that he decided not to list the Trump Media & Technology Group  on the New York Stock Exchange, even though the exchange “badly” wanted the company, because businesspeople are “treated too badly in New York” and “don’t want to be attacked by a thug like this horrible attorney general that we have in New York.”

There is one problem. The story does not make any sense.

Facts First : The stock exchange on which the Trump Media & Technology Group is being listed , the Nasdaq, is also headquartered in New York . In fact, the Nasdaq and the New York Stock Exchange are located in the same New York City borough of Manhattan. In other words, all of the New York laws and political oversight that would have applied to the company if it was listed on the NYSE will apply to the company when it is listed on the Nasdaq.

“It’s just mind-bogglingly nonsensical,” Jonathan Macey , a Yale Law School corporate law, corporate finance and securities law professor, said of Trump’s story.

Macey repeatedly laughed while discussing the story in an interview. He said it would be the equivalent of someone claiming that, to avoid persecution in New York, they were going to avoid shopping at Macy’s in New York but instead would shop at the Bloomingdale’s store next door in New York. He said: “Like, what?”

“I hope somebody advising President Trump informs him that the same investor protection rules that safeguard investors of the New York Stock Exchange also safeguard investors on the Nasdaq Stock Market,” Macey said.

Trump, now the presumptive Republican presidential nominee, told the story during a press conference in which he denounced New York Attorney General Letitia James and Manhattan District Attorney Alvin Bragg for bringing legal cases against him. (You can read more here  about the day’s major developments in those cases.)

He claimed that “the people at the stock exchange are very, very upset” that he decided against listing the company on the NYSE and that “the top person is mortified, can’t believe it.” And he said of this supposed NYSE official: “He said, ‘I’m losing business because of New York – because people don’t want to be in New York and they don’t want to go on the New York Stock Exchange.’ So you can ask them about it,” he said.

The “top person” at the NYSE, however, is not a “he.” The president of the NYSE since 2022, Lynn Martin , is a woman, as is her predecessor Stacey Cunningham. And the NYSE board is chaired by a woman, Sharon Bowen .

A NYSE spokesperson declined to comment about Trump’s account of the supposed conversation. The spokesperson did say the exchange would welcome Trump’s company.

“America’s capital markets are the envy of the world and investors benefit from more, not fewer, companies listed on public exchanges. New York should be open for business for all types of capital formation. With regard to Digital World Acquisition Corp. and Trump Media and Technology Group, the U.S. Securities and Exchange Commission has declared their business combination effective  and we would welcome the company for listing on the New York Stock Exchange,” the spokesperson said.

The company, which owns social media platform Truth Social, is scheduled to begin trading on the Nasdaq on Tuesday.

Baseless claims about Biden and his trials

Trump also repeated some familiar baseless claims about his legal cases.

Trump claimed that “this is all Biden-run things” and that “these are all Biden trials.” He also claimed that Matthew Colangelo, a former senior Justice Department official who now works for Manhattan District Attorney Alvin Bragg, had been “put into” the district attorney’s office by President Joe Biden.

He was speaking after a New York judge  set an April 15 date  for the beginning of his Manhattan criminal trial on charges of falsifying business records in relation to a hush money scheme, and, separately, an appeals court  reduced the bond he must put up  after being found liable for civil fraud.

Facts First:   There is no basis for Trump’s claims. First, there is no evidence that Biden has been involved in bringing or running any of the criminal or civil cases against Trump; the Manhattan prosecution is being led by Bragg and the civil fraud case by New York Attorney General Letitia James, both elected officials who do not report to the president or the federal Justice Department. Second, there is no evidence that Biden had anything to do with Colangelo’s  decision to leave the federal Justice Department and join the district attorney’s office in 2022  as  senior counsel to Bragg . Colangelo and Bragg knew each other before Bragg was elected Manhattan district attorney.

No evidence for Trump’s claims about Biden

James filed the lawsuit that led to Trump’s civil fraud trial  in September 2022  – about two months before Trump  launched his 2024 campaign . The lawsuit emerged from an investigation  she began in 2019 , roughly two years before Biden succeeded Trump as president. And there is no sign that Biden has had any role in bringing  criminal charges against Trump  in Manhattan or Fulton County, Georgia; those prosecutions have been led by elected local district attorneys.

Trump’s two federal indictments, meanwhile, were brought by a special counsel, Jack Smith. Smith was appointed in November 2022 by Attorney General Merrick Garland, a Biden appointee, but that is not proof that Biden was involved in the prosecution effort, much less that Biden personally ordered the indictments as Trump has previously claimed; Garland  has said that he would resign  if Biden ever asked him to take action against Trump but that he was sure that would never happen.

It’s worth noting that grand juries made up of ordinary citizens – in New York, Georgia, Florida and Washington, DC – approved the indictments in each of Trump’s  four criminal cases .

Colangelo’s move

Trump has also provided no evidence for his repeated claims that Biden orchestrated Colangelo’s 2022 move from the Justice Department to the Manhattan district attorney’s office. Colangelo and Bragg previously worked at the same time in the office of New York’s attorney general, where Colangelo  investigated Trump’s charity  and financial practices and was  involved in bringing various lawsuits  against the Trump administration.

Colangelo served as acting associate attorney general in the first months of the Biden administration in early 2021 and  then  as principal deputy associate attorney general. As acting associate attorney general, he was third in command of the department – never the top official there, as Trump has previously claimed.

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Trading Trump: Truth Social’s first month of trading has sent investors on a ride

FILE - Former President Donald Trump speaks with construction workers at the construction site of the new JPMorgan Chase headquarters in midtown Manhattan, Thursday, April 25, 2024, in New York. (AP Photo/Yuki Iwamura, File)

The stock price chart for the Trump Media and Technology Group on the NASDAQ website is seen on a computer screen in New York on Friday, April 19, 2024. (AP Photo/Patrick Sison)

FILE = The download screen for Truth Social app is seen on a laptop computer, Wednesday, March 20, 2024, in New York. (AP Photo/John Minchillo, File)

FILE - Pedestrians walk past the Nasdaq building Tuesday, March 26, 2024, in New York with the stock price of Trump Media & Technology Group Corp., displayed on screens. (AP Photo/Frank Franklin II, File)

FILE - The Truth Social account for former President Donald Trump is seen on a mobile device, Wednesday, March 20, 2024, in New York. (AP Photo/John Minchillo, File)

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WASHINGTON (AP) — There have been lawsuits, short-selling and rampant speculation. Now, as Trump Media & Technology Group approaches its first month as a publicly traded company, it’s clear that — like the man it’s named after — there’s nothing typical about the stock.

“If I woke up tomorrow and shares were zero dollars, or $100, I would not be surprised,” said Matthew Tuttle, a professional investor who bought $800 in Trump Media stock last week when it was at an all-time low. A day later, it had spiked in value.

“This is not going to move on fundamentals, earnings, or anything I was taught in business school about how a stock is supposed to move,” he said.

With Trump facing dozens of federal felony charges and hundreds of millions in legal expenses, Trump Media went public on March 26 on the Nasdaq exchange. Unlike many other stocks, it has been hard for traditional analysts and investors to figure out where it’s heading.

Here are some key takeaways from experts and regulator filings that help explain why Trump Media’s stock — ticker symbol DJT — has gone up and down , and why its performance continues to confound Wall Street expectations:

TRUMP MEDIA IS TRUMP

The stock’s volatility, experts say, is tied to Trump Media’s prime asset: Trump himself. Trump Media runs the social media platform Truth Social , which Trump created after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riot. The former Republican president, who is his party’s presumptive nominee for the White House this year, is a prolific poster to Truth Social and has a legion of diehard supporters.

“I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!” Trump posted the day his company went public.

Most large investors have balked at buying the company’s stock. Based in Sarasota, Florida, Trump Media has been losing loads of money and struggling to raise revenue, according to regulatory filings. That doesn’t appear to have dissuaded Trump’s supporters from embracing a chance to invest in a piece of him.

“It’s everything out of the ordinary,” said Julian Klymochko, CEO of Calgary-based Accelerate Financial Technologies Inc.

“I call it the mother of all meme stocks ,” he said, using a phrase oft-repeated about Trump Media. It’s the nickname given to stocks that get caught up in buzz online and shoot way beyond what traditional analysis says they’re worth.

RETAIL INVESTORS LEAD THE WAY

Day 1 looked like a windfall for Trump, who controls about 65% of the stock, and other early investors: Shares surged 59% to $79.38. Trump’s wealth immediately grew to $8 billion on paper. But he couldn’t cash out because of a “lock-up” provision that generally prevents company insiders from selling newly issued shares for six months.

The stock started to trend down, but not without near-daily rises and falls on heavy trading volume. The trading has largely been driven by individual investors whom Trump Media’s CEO Devin Nunes described as believing “in our mission to create a free-speech beachhead against Big Tech.”

Such retail investors are typically less sophisticated day traders. Some banded together to become a powerful force during COVID-19 lockdowns when they mobilized online to pour money into stocks of struggling companies such as video game retailer GameStop and movie theater operator AMC Entertainment. Those investors drove the companies’ stock to new heights while big investors ate large losses because they had been betting against the stocks.

Recent postings in a Truth Social group dedicated to chatting about the stock have often referred to buying it as not just an investment but a movement of “MAGA patriots putting our money where our mouth is,” referring to Trump’s “Make America Great Again” movement.

PROSPECTS ARE UNCLEAR

Truth Social launched in 2022, and the former president uses the platform like he often used Twitter, now known as X: to spread misinformation, praise supporters and attack his political rivals.

Trump was reinstated in November 2022 to X, though he has only posted to that site once since then . He has otherwise stuck to Truth Social, which had 18 million visits in the first three months of 2024, compared with 18 billion on X, according to research firm Similarweb.

Trump Media’s prospects are unclear, despite optimistic statements from Trump and its executives. Nunes said last week that the company’s “financial position is very strong, particularly for a start-up tech firm at this initial stage of growth.”

The company, however, lost nearly $58.2 million last year while generating only $4.1 million in revenue, according to Securities and Exchange Commission filings. The company has $200 million in the bank and no debt.

Trump’s retail investors appear to be ignoring the company’s fundamentals and placing a bet that the former president will ensure it succeeds, according to analysts and other experts.

They “are thinking he’ll figure something out, he’s always done that,” said John Rekenthaler, vice president of research for Morningstar Research Services. “And it’s true, he always lands on his feet. But the people who invest with him, they don’t always land on their feet.”

Financial advisers and experts are less sanguine about its prospects. They noted that Trump Media’s financial filings have provided no indication it has the kind of strategy that will lead to profits. They also pointed out that the company’s leadership has little experience running a social media outfit.

The company’s executives and board members include Nunes, a former congressman and Trump ally, and one of the former president’s sons, Donald Trump Jr. Among the others are Kash Patel, who was a top national security adviser and official in the Trump administration, and Robert Lighthizer, the U.S. trade representative under Trump.

It is a recipe for a corporate crash, experts said.

“Sooner or later it’s going to get messy,” said University of Michigan law professor Albert Choi. He said it is most likely that Trump Media will run out of cash and be forced to liquidate or file for bankruptcy.

OTHER RISKS

The company has a unique risk, experts said: Trump is not known for being disciplined, especially on social media. Because he is a controlling shareholder, he could be fined or penalized for making false statements about the company. This happened to Elon Musk, who was charged with securities fraud in 2018 after he hinted he would be taking Twitter private. Musk settled with the SEC for a $40 million fine and was forced to step down as Tesla’s chairman.

SEC filings also warn that Trump is facing legal trouble that could jeopardize the company’s stability. A New York judge issued a $454 million civil fraud judgment against Trump after concluding that he and others had deceived banks and insurers by exaggerating their wealth on financial statements.

Trump has appealed the fine and posted a $175 million bond while the case is considered.

Trump, meanwhile, is on trial in New York on charges of falsifying business records as part of a scheme to squelch negative stories about him during his 2016 presidential campaign. He has been indicted twice in federal court — once on charges of trying to overturn the results of the 2020 election and the other on accusations he kept classified documents after leaving the White House. He has also been indicted in Georgia on charges of racketeering and conspiracy with the aim of potential 2020 election interference.

Trump Media has also been targeted in lawsuits. In February, Trump Media co-founders Andy Litinsky and Wes Moss, who met Trump when they were on his reality show “The Apprentice,” sued the company to prevent Trump from diluting their 8.6% stake by increasing authorized shares from 120 million to 1 billion. Trump sued right back, arguing that they should forfeit their stock in the company because they set it up improperly.

This is not the first time Trump has led a publicly traded company. In 1995, Trump Hotels and Casino Resorts went public on the New York Stock Exchange under the same ticker symbol of DJT. The company lost money for the next nine years and declared bankruptcy.

Associated Press writers Brian Slodysko and Alan Suderman contributed to this report.

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Singapore battles to revive struggling stock market

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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Singapore is studying proposals to shake up its struggling stock market as the gap between the financial hub’s performance and other regional exchanges widens.

Singapore Exchange (SGX) is reviewing a document from the nation’s venture and private capital association, according to three people familiar with the discussions. The Singapore Venture & Private Capital Association (SVCA) includes state funds GIC and Temasek, local and global venture firms, and buyout groups including General Atlantic, Warburg Pincus and KKR.

Discussions have been going on since the beginning of the year, the people added, and the SVCA’s proposals are also being considered by the government’s Economic Development Board, Monetary Authority of Singapore and the Ministry of Trade and Industry.

The government did not commission the document, but it has appeared as it discusses policy changes with SGX to boost the stock market. The two are responding to the next wave of south-east Asian companies — such as Singapore-based automotive marketplace Carro — opting for the US over Singapore to list.

Among the proposals suggested is mandating stock market participation from the record sums of private capital that have poured into the city-state in recent years, such as into family offices and other wealth management businesses.

There are also more politically sensitive suggestions, such as mechanisms allowing pension and sovereign money to be invested in the stock market as seen in Australia or Thailand, the people said. While Temasek invests in local companies, GIC, which manages the government’s foreign reserves, only invests internationally.

“There has been a shift in thinking by the government that this is not just an SGX problem but important to Singapore’s national agenda. Is it possible to be a well-rounded and relevant international financial centre with an anaemic stock market? Perhaps not,” said an industry executive involved with the discussions.

One person involved in the document’s creation who did not wish to be named said they had “not seen an all-government and industry approach like this since Singapore first decided it wanted to foster a tech and venture capital industry in the late 2000s”.

“For the first time, they seem more willing to consider more maverick, aggressive moves such as investing pension money — which is normal elsewhere but new for Singapore.”

SGX chair Koh Boon Hwee, appointed last year, has been heavily involved and more willing to hear fresh perspectives, the people said. Koh, a business veteran in the city-state, has also chaired telecoms group Singtel, the city’s biggest bank DBS and Singapore Airlines.

The MAS said it “has received the proposals and is reviewing them”. SGX, the EDB and MTI declined to comment.

Singapore has risen as a financial centre in recent years, boosted by a crackdown by China’s President Xi Jinping on the rival business hub of Hong Kong and record amounts of private wealth and capital flowing into the island state, regarded as a haven for its stability and business-friendly, low tax market.

But the government’s success in private markets has never flowed through to its stock exchange — even as more new economy and technology companies set up their headquarters in Singapore .

SGX has been dogged by low volumes and questions over corporate disclosure practices. Delistings frequently outnumber listings. The bourse has a high concentration of businesses in which state investor Temasek has a big block stake, as well as asset-heavy companies such as real estate investment trusts that have languished in recent years amid higher interest rates.

The exchange was one of the quietest globally last year in terms of deals and funds raised, at seven and $300mn respectively, according to PwC research. Its poor performance has become starker with regional exchanges preparing for an initial public offering revival as global macroeconomic conditions improve.

The Indonesian stock exchange was among the top five exchanges globally by total number of IPOs in 2023. India recorded its highest number of IPOs since 2017 last year at 234, an increase of 56 per cent on 2022 while private investors are shifting more capital to it in preference to China.

Japanese stocks last month broke a bubble-era record while Hong Kong Exchange has appointed new leadership as the city fights to maintain its status as a major financial centre.

“There is a growing fear that even some private capital could leave Singapore in favour of being closer to those faster-growing markets, especially India,” said one Singapore-based venture capital managing partner consulted by the government and SGX.

The government has also been closely watching other countries’ policies, such as the UK dialling up the pressure on pension schemes to help companies grow, the people said. Like GIC, Singapore’s Central Provident Fund also has abundant capital. While retail investors can use their CPF money to invest in selected stocks, that does not move the needle in terms of volumes. There is no government policy that mandates or encourages CPF investment into equities at a broader level.

Another proposal includes more collaboration with south-east Asian stock markets, including the potential for Singapore to host a regional exchange down the track and underpin any issues such as currency risk.

“Singapore trumpets that it is an ‘innovation economy’ but has a retirement system that is so risk averse. Building that liquidity might start to incentivise fund managers,” another person familiar with the talks said.

Others however questioned whether the latest attempt would be enough to turn around SGX’s trajectory.

“Creating supply and demand is hard. They really need to be talking to market makers like local funds and asset managers and I still am not seeing that,” said one Singapore-based hedge fund executive.

Previous efforts, such as tie-ups with the Nasdaq and Tel Aviv exchanges to attract secondary listings, or a Spac regime being introduced in 2021, have failed to work.

“It’s nice to have ideas and to make it part of the Singapore national agenda. But fixing poor disclosure practices, or strengthening corporate governance to give investors more assurance, remain the broader issues for us,” the hedge fund executive added.

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