What You Should Know About The New York Stock Exchange

by Dean Forster

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.

Although majority of its listed companies come from US companies, its non-US players are growing exponentially. The New York Stock Exchange uses technologically advanced systems to provide an efficient method of trading stocks registered for public offering. It is this ability that appeals to top corporations and numerous investors from around the world.

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 New York Stock Exchange primarily started as a non-profit entity to help companies raise their capital by providing a venue for trading stocks and bonds. These companies earn by offering a percentage of ownership to the public, who in turn could earn as well from the shares if their value increases in the market. There are about 2,800 US companies and from other countries listed in the exchange. Anyone can own stock from these multi-million dollar companies, such as Microsoft and Wal-Mart.

If you only by a few shares in a large company like Coca Cola, you might not think your investment counts for much, but that isn’t exactly true. In order for a company to list shares on the exchange, the exchange requires that the company provide the same complete financial information to anyone who owns even one share of stock.. This includes and invitation to the annual stockholder’s meeting. Find out more about the stockmarket at http://www.learningtotradestock.com

Companies who would like to directly trade in the New York Stock Exchange must come up with the finances to afford any of the limited “seats” that can cost up to millions of dollars. The activities of these member corporations are carefully regulated by the exchange.

Believe it or not, the first offices for the New York Stock Exchange were opened in 1817 at 40 Wall Street in New York. The offices cost $200 a month to rent. By 1901, the amount of trading had increased six fold and more permanent offices seemed to be necessary. The New York Stock Exchange opened its new doors in 1903 at a cost of $4 million dollars and was the largest office space in New York at the time.

The New York Stock Exchange’s web site has a list of member firms and is a good place to get to know a little bit more about the exchange before you begin investing. However, chances are that if you only decide to invest a moderate amount, you will be talking to a correspondent broker of a member firm who will charge a fee for buying or selling stock. Just remember to make sure that they are regulated and licensed by the exchange before you give them any funds to invest.

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