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Finance Dictionary and Glossary of Investment Terms
New York Stock Exchange
NYSE. The oldest and largest stock exchange in the U.S., located on Wall Street in New York City. The NYSE is responsible for setting policy, supervising member activities, listing securities, overseeing the transfer of member seats, and evaluating applicants. It traces its origins back to 1792, when a group of brokers met under a tree at the tip of Manhattan and signed an agreement to trade securities. Unlike some of the newer exchanges, the NYSE still uses a large trading floor in order to conduct its transactions. It is here that the representatives of buyers and sellers, professionals known as brokers, meet and shout out prices at one another in order to strike a deal. This is called the open outcry system and it usually produces fair market pricing. In order to facilitate the exchange of stocks, the NYSE employs individuals called specialists who are assigned to manage the buying and selling of specific stocks and to buy those stocks when no one else will. Of the exchanges, the NYSE has the most stringent set of requirements in place for the companies whose stocks it lists, and even meeting these requirements is not a guarantee that the NYSE will list the company. also called Big Board.
America''s biggest, oldest and most important securities exchange, the New York Stock Exchange and its august Wall Street home are virtually synonymous with the stock market for many people. It is the exchange with the most stringent requirements for being listed, and it is where most of the nation''s largest and best-established companies are listed. Although computers are used, the NYSE remains somewhat old-fashioned in that buyers and sellers (representing investors all over the globe) shout orders at one another face to face. In fact, the NYSE''s ""auction"" system, in which buyers and sellers meet in the open market, generally produces fair market pricing. To maintain an orderly market, ""specialists"" on the trading floor manage buying and selling of assigned stocks and have the responsibility of buying when no one else will. The NYSE''s preeminence faces a number of challenges, including after-hours trading away from the exchange and the rise of Nasdaq, whose computerized system proves that trading is entirely possible without all the operatic shouting and gesturing, no matter how picturesque. But Nasdaq''s dealer spreads have proven that technology in and of itself doesn''t always make for the most efficient market.