New York Stock Exchange

New York Stock Exchange
The NYSE's logo
bor c f uder
The New York Stock Exchange in 2015.
TypeStock exchange
LocationNew York City, New York, U.S.
FoundedMay 17, 1792; 226 years ago (1792-05-17)[1]
OwnerIntercontinental Exchange
Key people
CurrencyUnited States dollar
No. of listings2,400[2]
Market capUS$23.2 trillion[3]
VolumeUS$20.161 trillion (2011)
Indices
New York Stock Exchange
New York Stock Exchange Simon Fieldhouse.jpg
Front Elevation of the New York Stock Exchange.
New York Stock Exchange is located in Lower Manhattan
New York Stock Exchange
New York Stock Exchange is located in New York
New York Stock Exchange
New York Stock Exchange is located in the US
New York Stock Exchange
Coordinates40°42′24.6″N 74°0′39.7″W / 40°42′24.6″N 74°0′39.7″W / 40.706833; -74.011028
Built1903
ArchitectTrowbridge & Livingston; George B. Post
Architectural style78001877
Significant dates
Added to NRHPJune 2, 1978[4]
Designated NHLJune 2, 1978[5]
Designated NYCLJuly 9, 1985

The New York Stock Exchange (NYSE, nicknamed "The Big Board")[6] is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far[7][8] the world's largest stock exchange by market capitalization of its listed companies at US$21.3 trillion as of June 2017.[3] The average daily trading value was approximately US$169 billion in 2013. The NYSE trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007. The main building and the 11 Wall Street building were designated National Historic Landmarks in 1978.

The NYSE is owned by ICE). Previously, it was part of NYSE Euronext (NYX), which was formed by the NYSE's 2007 merger with Euronext.[9]

The NYSE has been the subject of several lawsuits regarding fraud or breach of duty[10][11] and in 2004 was sued by its former CEO for breach of contract and defamation.[12]

History

The Stock Exchange at 10–12 Broad Street, in 1882

The earliest recorded organization of securities trading in New York among brokers directly dealing with each other can be traced to the Buttonwood Agreement. Previously securities exchange had been intermediated by the auctioneers who also conducted more mundane auctions of commodities such as wheat and tobacco.[13] On May 17, 1792 twenty four brokers signed the Buttonwood Agreement which set a floor commission rate charged to clients and bound the signers to give preference to the other signers in securities sales. The earliest securities traded were mostly governmental securities such as War Bonds from the Revolutionary War and First Bank of the United States stock,[13] although Bank of New York stock was a non-governmental security traded in the early days.[14] The Bank of North America along with the First Bank of the United States and the Bank of New York were the first shares traded on the New York Stock Exchange.[15]

In 1817 the stockbrokers of New York operating under the Buttonwood Agreement instituted new reforms and reorganized. After sending a delegation to Philadelphia to observe the organization of their board of brokers, restrictions on manipulative trading were adopted as well as formal organs of governance.[13] After re-forming as the New York Stock and Exchange Board the broker organization began renting out space exclusively for securities trading, which previously had been taking place at the Tontine Coffee House. Several locations were used between 1817 and 1865, when the present location was adopted.[13]

The invention of the electrical telegraph consolidated markets, and New York's market rose to dominance over Philadelphia after weathering some market panics better than other alternatives.[13] The Open Board of Stock Brokers was established in 1864 as a competitor to the NYSE. With 354 members, the Open Board of Stock Brokers rivaled the NYSE in membership (which had 533) "because it used a more modern, continuous trading system superior to the NYSE’s twice-daily call sessions." The Open Board of Stock Brokers merged with the NYSE in 1869. Robert Wright of Bloomberg writes that the merger increased the NYSE's members as well as trading volume, as "several dozen regional exchanges were also competing with the NYSE for customers. Buyers, sellers and dealers all wanted to complete transactions as quickly and cheaply as technologically possible and that meant finding the markets with the most trading, or the greatest liquidity in today’s parlance. Minimizing competition was essential to keep a large number of orders flowing, and the merger helped the NYSE to maintain its reputation for providing superior liquidity."[16] The Civil War greatly stimulated speculative securities trading in New York. By 1869 membership had to be capped, and has been sporadically increased since. The latter half of the nineteenth century saw rapid growth in securities trading.[17]

Securities trade in the latter nineteenth and early twentieth centuries was prone to panics and crashes. Government regulation of securities trading was eventually seen as necessary, with arguably the most dramatic changes occurring in the 1930s after a major stock market crash precipitated an economic depression.

The Stock Exchange Luncheon Club was situated on the seventh floor from 1898 until its closure in 2006.[18]

The main building, located at 18 Broad Street, between the corners of Wall Street and Exchange Place, was designated a National Historic Landmark in 1978,[19] as was the 11 Wall Street building.[5][20][21]

The floor of the New York Stock Exchange in 1908

The NYSE announced its plans to merge with Archipelago on April 21, 2005, in a deal intended to reorganize the NYSE as a publicly traded company. NYSE's governing board voted to merge with rival Archipelago on December 6, 2005, and became a for-profit, public company. It began trading under the name NYSE Group on March 8, 2006. A little over one year later, on April 4, 2007, the NYSE Group completed its merger with Euronext, the European combined stock market, thus forming NYSE Euronext, the first transatlantic stock exchange.

Wall Street is the leading US money center for international financial activities and the foremost US location for the conduct of wholesale financial services. "It comprises a matrix of wholesale financial sectors, financial markets, financial institutions, and financial industry firms" (Robert, 2002). The principal sectors are securities industry, commercial banking, asset management, and insurance.

Prior to the acquisition of NYSE Euronext by the ICE in 2013, Marsh Carter was the Chairman of the NYSE and the CEO was Duncan Niederauer. Presently,[when?] the chairman is Jeffrey Sprecher.[22] In 2016, NYSE owner Intercontinental Exchange Inc. earned $419 million in listings-related revenues.[23]

Other Languages
azərbaycanca: Nyu-York Fond Birjası
беларуская (тарашкевіца)‎: Нью-Ёрская фондавая біржа
Esperanto: Novjorka Borso
客家語/Hak-kâ-ngî: New York Chṳn-khèn Kâu-yi-só
Bahasa Indonesia: Bursa Efek New York
Bahasa Melayu: Bursa Saham New York
norsk nynorsk: New York-børsen
саха тыла: NYSE
Simple English: New York Stock Exchange
slovenščina: Newyorška borza
српски / srpski: Њујоршка берза
srpskohrvatski / српскохрватски: Njujorška burza
татарча/tatarça: Nyu-York fond birjası