New York Market Exchange
In the distant 1700 year, soon after the adoption of the Declaration on the Independence of the United States, there were only two types of securities that can be sold. These were government bonds and shares of the Bank of the USA - the first American Bank.
Market brokers, traders and auctioneer bought and sold shares and bonds in the offices and cafes in the area of the street to Wall Street, situated in the southern part of manhettana. Without a predetermined time and place of trade sellers and buyers had to find each other, so you need a lot of time to sell or buy shares.
Everything changed on may 17, 1792, when the twenty-four broker, who traded securities on Wall Street, have signed an agreement to trade only with each other. It has received the name «the Agreement under the sycamore tree», because it was signed under ïëàòàíîâûì tree in the area of the street to Wall Street, where informally met brokers. This policy has given impetus to the creation of today's New York Market Exchange.
In 1971, the NYSE was registered as a non-profit organization. It is governed by a Board of Directors composed of 26 members: the Chairman, the President, 12 representatives from the public and 12 representatives of professional participants of the securities market. The new York stock exchange is the world leader on the market of shares. Here concentration substantially more capital than on other exchanges.
The Listing Of The New York Market Exchange
The NYSE is the world's largest stock exchange. Virtually every large American company was listed there. Listing is the inclusion of the company's shares in the quotation lists. Listing on the NYSE gives companies access to significant financial resources.
Listing on the New York Market Exchange were held for more than 2,800 companies, of which approximately 450 foreign companies from 53 countries. The company, listed include, as more reliable, stable companies, the so-called «Blue chips», and the young, quickly developing company. New companies come into the quotation lists after a public offering of its shares on the stock exchange (initial public offering (IPO). For listing of the company must comply with the severe financial and legal requirements of the exchange. The company, which passed the listing, have to pay membership fees. At the present time the quotation list of the NYSE is replenished mostly at the expense of inclusion in the listing of the shares of foreign companies.
Trading platform
For the first time hit on the NYSE, You will be slightly puzzled, he saw how active is the process of buying and selling shares. The trading floor of the New York Market Exchange is a beehive, in which no movement ends, the market participants gather around Board with quotations, exposing the application for purchase and sale.
Professionals of the market, using modern technologies, distribute orders of buyers and sellers to determine the price of the shares according to the law of supply and demand. Two key positions allow to make the purchase or sale of the trading floor of the exchange. This is the position of the broker hall and a specialist.
Brokers hall NYSE
Brokers hall are divided into brokers working in the brokerage house, and independent brokers. Both those, and others work only with institutional clients.
Individuals can perform operations on the stock exchange through brokers of the brokerage house. These brokers are in the role of «financial advisors» and for the implementation of their activity, they must have a licence to pass the qualification exam and be registered on the NYSE and the Commission for the securities and Exchange Commission.
The application of the investor is sent from the head office of the brokerage house brokers hall through sophisticated electronic communication and processing systems.
Specialists of the stock exchange New York Exchage
This is the professional participants of the securities market, which are collected in itself all applications brokers hall on the purchase and sale of certain shares. Each share is served by a specialist, who acts as the auctioneer and is in a certain place in the main hall exchange, which is called trading post. All brokers are buyers and sellers on each share gather around the appropriate trading post. Brokers loudly chanting their applications : competition applications determines the price.
The number of shares traded one specialist, depends on the total activity in the market. Over the trading post is the display on which you can see a variety of information on the shares, which are traded on the trading post.
About 95% of orders for purchase or sale of shares are sent directly to the trading post. However, this is only 65% of the total volume of transactions. The remaining 35% of the transactions are committed as a result of only 5% of the applications received at the trading post from brokers hall, which is located near the trading post in order to get from a specialist best price per share.
The American dream
About 80 million Americans invest their savings in shares. This market has historically provided the highest yield on investment in the long run.
To work with the shares of the investor opens an account in the broker company, and begins to conduct transactions via the Internet or by phone. By going to your trading account via the Internet, the investor can see the list of traded on the exchange of the shares and the prices for them. Taking the decision about the purchase/sale of a share, the investor submits the order (order) his broker, who in turn sends it to the stock exchange.
There are several types of orders New York Market Exchange:
- Market orders - the orders give the opportunity to make operation of purchase/sale of shares by the current market price. The investor makes an application to the broker to buy or sell «the market»;
Limit orders - in these orders price different from current market prices. The investor puts the price at which he would like to buy/sell shares. In contrast to the market orders that are executed immediately after submission, limit orders might not be fulfilled - the price of the shares may not reach the level that is specified in the order. Limit orders can be day and «to cancel» (GTC). Day orders are valid only during the trading session. The essence of orders «to cancel» is in the title of the order.
Stop orders - a buy stop order becomes a market order when the price of the last transaction in shares equals or exceeds the price of the order. A stop order to sell becomes a market, when the price of the last transaction in the shares is equal to the price of an order or below it. One of the ways to get quotes for the day is to view tickers shares through the Internet. Ticker is a brief character representation of the shares.
