The New York Stock Exchange

History

The New York Stock Exchange (NYSE) was formed on May 17, 1868, when a group of investors purchased the New York Stock Exchange Building at 10 Wall Street, New York City, and formed a stock exchange. On March 8, 1885, the New York Curb Trading Board was formed, making it the world's first stock exchange. The curb (or off) exchange acted as a middleman between brokers who traded on the New York Stock Exchange (offering the exchange's entire inventory of securities, including stocks, bonds, and Treasury bills) and customers who wanted to buy or sell large quantities of securities and was located mainly on Wall Street. The curb exchange operated until 1934 when it merged with the New York Stock Exchange. At that time, it was the only stock exchange in America that was not officially part of the New York Stock Exchange. Today, it is known as the American Stock Exchange.

NYSE Member Firms

A stock exchange is a marketplace where people buy and sell securities, such as stocks and bonds. A stock exchange also offers a wide range of services for investors, such as trading places and managing the process of buying and selling stocks.

The New York Stock Exchange (NYSE) is the largest in the world, with more than 3,800 listed companies and over $27 trillion in market capitalization. It is the world's third-largest exchange in terms of trading volume, behind the Tokyo Stock Exchange and the Shanghai Stock Exchange.

The NYSE is owned by its member firms that conduct business there as brokers, dealers, and other market intermediaries as well as private investors.

Trading Sessions

The New York Stock Exchange is open for trading almost around the clock, except on weekends and holidays. The daily schedule is as follows:

• The opening session starts at 9:30 AM (ET) and ends at 1:15 PM (ET).
• The closing session begins at 3 PM (ET) and ends at 4:30 PM (ET).
• The after-hours session runs from 4:30 PM until the end of the day at 9:30 AM (ET).

New Issues and Mergers

New issues and mergers and acquisitions (M&A) are events that happen on Wall Street regularly. They are times when companies sell shares to raise money. A new issue is when a company sells new shares for the first time. A merger is when two companies join together and a company buys another company.

- A new issue of shares usually happens when a company needs to raise money for some reason, such as to pay for new equipment or an expansion. If a company has a new issue of shares, it will often ask an investment bank to help sell the shares to individual investors.

- A merger is when two companies join together. Sometimes, one company will buy or buy out another company.

- An M&A deal is completed when a company buys another company and then merges the two companies.

Company Culture: The New Employee Orientation Program (NEOP)

The New York Stock Exchange (NYSE) is also known for its unique culture. The organization is renowned for its employee orientation program (or "New Employee Orientation Program" (NEOP)); a program that the organization has handed down since 1887.

The NEOP was created during the era of manual typewriters and manual phones when communication and information sharing were much slower than today. The purpose of the NEOP is for new employees to be immersed in the culture of the organization and to better understand the history, mission, and guiding principles of the organization through a series of activities that occur over the first three months of employment. During this time, each new employee has a buddy (an experienced employee) who assists the new employee through the various activities and acts as a guide and mentor to help the new employee navigate the organization and feel like a part of the team.

Exchange Technology and Operation

The New York Stock Exchange (NYSE) is the third-largest stock exchange in the world by market capitalization. It is also the largest stock exchange in the world by shares traded, with approximately 3.8 billion shares traded daily.

The exchange has a dual-market structure, operating two trading places: the New York Stock Exchange (NYSE) Arca exchange, which is an all-electronic platform; and the NYSE floor, which is open to trading by floor brokers.

The NYSE Arca is an electronic trading platform that enables buyers and sellers to trade stocks (and options and futures contracts) in a centralized system. The NYSE Arca trading platform uses algorithms similar to those employed in the operation of an options exchange.

Bottom line

The New York Stock Exchange (NYSE) is the oldest and largest stock exchange in the world. It is also the third-largest stock exchange by market capitalization.

The NYSE is owned by its member firms that conduct business there as brokers, dealers, and other market intermediaries as well as private investors. It has a dual-market structure, operating two markets: The New York Stock Exchange (NYSE) Arca exchange, which is an all-electronic platform. The NYSE floor is open to trading by floor brokers.