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What You Should Know About The New York Stock Exchange

Apr 4, 2008
The New York Stock exchange was established in 1792 when 24 stockbrokers gathered under a buttonwood tree at 68 Wall Street and signed what was called the Buttonwood Agreement. Since then, the New York Stock Exchange has grown to become the biggest exchange in the world. Its success is measured in the dollar volume and listed securities on the exchange.

Because it is the largest equities marketplace in the world, billions of dollars of shares are traded daily. The total global market value of the listed companies is estimated at $25 trillion dollars. This includes non-U.S. companies which are worth $9.6 trillion dollars. The stock exchange's primary function is to allow investors to buy and sell shares of the publicly traded companies they list. These companies are a cross-section of large, midsize and small capitalization companies.

The New York Stock Exchange is comprised of companies who trade on the floor for numerous US companies and entities from around the world. They directly buy and sell shares from a special group of auctioneers representing seat owners. These seats are owned by large firms who can afford to buy their place in the exchange, priced at millions of dollars. This privilege allows them to trade and handle billions of dollars in market orders directly to the member companies.

The goal of the New York Stock exchange is to ultimately bring buyers and sellers of publicly traded companies together in a fair marketplace where every one has a fair chance to purchase stocks. This allows for companies to sell stocks to raise money for business operations, while at the same time giving the general public the opportunity to make investments in major companies in the United State and around the globe. This means that anyone can go to a brokerage firm that is allowed to trade directly and buy stock in any company from Exxon to General Foods.

To best serve its investors, the New York Stock Exchange continually improves on the quality of its corporate governance policies. The structure of these policies are created with the consumers in mind and applicable to anyone, whether share ownership is by a person with only a small percentage invested or by a huge entity with a large stake in another company. Companies whose shares are sold to the public must meet the high-level of standards required by the exchange and practice complete financial transparency to its shareholders. Learn more about trading stock at http://www.learningtotradestock.com

The New York Stock exchange doesn't allow just anyone to trade, and protects investors by limiting the number of seats on the exchange and keeping the criteria and the price to trade directly on the exchange extremely high. A seat on the exchange can cost up to 4 million dollars, if one is even available.

The New York Stock Exchange does not lack either in historically significant facts about its members. For example, the first company to be listed in Wall Street was the Bank of New York, trading in the same year of the organization's creation. The New York Gas Light Company holds the record for the longest listed corporation. The exchange had a telephone installed in the building in 1978 before it got electric lights five years later.

In order for you to be able to invest in the New York Stock Exchange, you must contact any of the stock brokers of member companies. This way, you can be assured that the people handling your account are licensed and governed by the exchange.
About the Author
Before you start to allocate funds, buy or trade company shares, read more about how to trade stock and make sense of the financial market at arbitrage trading
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