Table of Contents
- What Is the New York Stock Exchange (NYSE)?
- Key Takeaways
- Understanding the New York Stock Exchange (NYSE)
- Fast Fact on Market Capitalization
- The NYSE's Opening and Closing Bells
- Fast Fact on Trading Volume
- History of the NYSE
- Who Owns the New York Stock Exchange?
- Where Is the Oldest Stock Exchange in the World?
- What Is the Largest Stock Exchange in the World?
- The Bottom Line
What Is the New York Stock Exchange (NYSE)?
Let me tell you directly: the New York Stock Exchange (NYSE) is a stock exchange in New York City, and it's the largest equities-based exchange worldwide based on the total market capitalization of its listed securities.
It used to be a private organization, but on March 8, 2006, it became public after acquiring the electronic trading exchange Archipelago. Then in 2007, it merged with Euronext, Europe's largest stock exchange, creating NYSE Euronext, which Intercontinental Exchange, Inc. (ICE) later acquired—ICE is now the parent company of the NYSE.
Key Takeaways
The NYSE dates back to 1792 and holds the title of the world's largest stock exchange by total market capitalization of its listed securities. It was the first formalized stock exchange in the United States. You'll find many of the oldest publicly traded U.S. companies listed on what we call the 'Big Board,' the NYSE's nickname. Today, the Intercontinental Exchange (ICE) owns the NYSE, having bought it in 2013.
Understanding the New York Stock Exchange (NYSE)
The NYSE is located on Wall Street in New York City, also known as the 'Big Board.' It has one trading floor for equities and another for the NYSE American options exchange. The main buildings at 18 Broad St. and 11 Wall St. were designated historical landmarks in 1978.
For years, the NYSE relied solely on floor trading with the open outcry system. Now, many trades have shifted to electronic systems, mainly handled by designated market makers who manage both physical and automated auctions. The quotes from these DMMs match what floor traders and other participants offer.
The NYSE is open for trading Monday through Friday from 9:30 a.m. to 4:00 p.m. ET. It closes on certain U.S. holidays, and if a holiday falls on a Saturday, it might close the Friday before; if on Sunday, it could close the following Monday.
Fast Fact on Market Capitalization
Here's a key point: the NYSE is the world's largest stock exchange by total market capitalization of listed companies, estimated at $24.6 trillion as of mid-2022.
The NYSE's Opening and Closing Bells
The opening and closing bells mark the start and end of the trading day. The opening bell rings at 9:30 a.m. ET, and the closing bell at 4:00 p.m. ET. Trading days didn't always use a bell—the original signal was a gavel. In the late 1800s, it switched to a gong, and by 1903, when the NYSE moved to 18 Broad St., the bell became official.
Before 1995, floor managers rang the bells. Now, the NYSE invites company executives to ring them regularly, often tying it to marketing events like product launches or mergers. Sometimes, public figures like athletes or celebrities do it—think Liza Minnelli, Michael Phelps, or Snoop Dogg. In July 2013, UN Secretary Ban Ki-moon rang the closing bell for the NYSE joining the U.N. Sustainable Stock Exchanges Initiative.
Fast Fact on Trading Volume
The NYSE passed the milestone of one million shares traded in a single day in 1888. By 2022, more than five billion shares change hands on a normal business day.
History of the NYSE
The NYSE dates back to May 17, 1792, when 24 New York City stockbrokers signed the Buttonwood Agreement at 68 Wall St. It started with five securities: three government bonds and two bank stocks.
Thanks to its early start as the major U.S. exchange, many oldest publicly traded companies are listed here. Consolidated Edison (ED) is the longest-listed, joining in 1824 as New York Gas Light Company. Foreign corporations can list too, if they meet standards.
Mergers have built its size: it started as NYSE, merged with Euronext and added the American Stock Exchange. ICE bought NYSE Euronext for $11 billion in 2013. Euronext spun off via IPO in 2014, but ICE kept the NYSE.
A Few Notable Dates in the NYSE’s History
- Oct. 24, 1929: The most devastating U.S. stock market crash began on Black Thursday, continuing to Black Tuesday, signaling the Great Depression.
- Oct. 1, 1934: The NYSE registered as a national securities exchange with the SEC.
- Oct. 19, 1987: The DJIA dropped 508 points, or 22.6%, in one day.
- Sept. 11, 2001: Trading shut down for four days after 9/11 attacks, resuming on Sept. 17 with $1.4 trillion lost in five days.
- October 2008: NYSE Euronext acquired the American Stock Exchange for $260 million in stock.
- May 6, 2010: The DJIA had its largest intraday drop since 1987, falling 998 points in the 2010 Flash Crash.
- Dec. 20, 2012: ICE proposed buying NYSE Euronext for $8 billion in stock.
- May 1, 2014: The NYSE was fined $4.5 million by the SEC for market rule violations.
- May 25, 2018: Stacey Cunningham became the first female president of the NYSE.
- March 16, 2020: COVID-19 fears caused the DJIA's largest daily point drop, falling 2,997.10 points.
- March 23, 2020: The NYSE closed floor trading due to COVID-19, continuing electronically.
- March 24, 2020: The DJIA had its largest one-day point gain on stimulus expectations.
Who Owns the New York Stock Exchange?
The NYSE was acquired by the Intercontinental Exchange (ICE) group in 2013.
Where Is the Oldest Stock Exchange in the World?
The Amsterdam Stock Exchange (AEX) in the Netherlands is the oldest, established in 1602 by the Dutch East India Company. It's now owned by Euronext.
What Is the Largest Stock Exchange in the World?
The NYSE is the largest by market capitalization of listed companies. NASDAQ ranks second, followed by the Shanghai Stock Exchange and Euronext.
The Bottom Line
The NYSE is the oldest and most influential securities exchange in the United States, and the largest worldwide by total listed company market cap. It started humbly under a buttonwood tree in Manhattan and now symbolizes Wall Street. It lists key American companies and remains the top venue for stock trading.
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