New York Stock Exchange

The New York Stock Exchange (NYSE) is the second largest stock exchange in the world, second only to NASDAQ. It is one of the most important financial centers in the United States and globally, and is the listing location for many well-known companies and brands. This article will introduce the history, features, indices and listed companies of the New York Stock Exchange, as well as its impact on investors and the economy.

History of the New York Stock Exchange

The origins of the New York Stock Exchange can be traced back to May 17, 1792, when 24 securities brokers signed the "Sycamore Agreement" under a sycamore tree outside 68 Wall Street in New York, stipulating trading rules and commissions for stocks and bonds. . This is considered the beginning of the American stock market.

On March 8, 1817, the organization drafted a charter and changed its name to the New York Securities and Exchange Commission, which was changed to its current name in 1863. The exchange was closed shortly after the outbreak of World War I (July 1914), but reopened on November 28 of that year, allowing free trading of various bonds to support the war effort.

On October 24, 1929, "Black Thursday", the U.S. stock market collapsed, and the panic caused by falling stock prices prompted the Great Depression. On October 31, 1938, in an effort to restore investor confidence and improve protection of the investing public, the Exchange launched a 15-point plan.1 On October 1, 1934, the Exchange registered with the U.S. Securities and Exchange Commission as a national securities exchange The exchange, which had a chairman and a 33-member board of directors, was officially incorporated as a non-profit corporate body on February 18, 1971, and the number of board members was reduced to 25.

At the end of April 2005, the NYSE and the All-Electronic Stock Exchange (Archipelago) merged to become a for-profit institution. On June 1, 2006, the New York Stock Exchange announced that it would merge with Euronext to form the New York Stock Exchange-New York Euronext. On November 13, 2017, NYSE announced the acquisition of the Chicago Stock Exchange (CHX), a subsidiary of the Chicago Mercantile Options Exchange (CBOE), to further expand its business scope.

Features of the New York Stock Exchange

The headquarters of the New York Stock Exchange is located at 18 Broad Street, New York, New York, United States, on the south side of the corner of Wall Street. It is an exchange with a long history and tradition, using a mixture of manual and electronic trading methods, that is, professional traders (traders) and designated market makers (DMMs) conduct physical transactions in the trading floor, and also use electronic trading methods. The platform provides online transactions.

The trading hours of the New York Stock Exchange are 9:30-16:00 (local time) except weekends and regular closing days. It has approximately 2,800 companies listed here, with a global market value of 26.2 trillion U.S. dollars (2021) . Its listed companies cover various industries and fields, including technology, finance, consumption, energy, medical, industry, etc. Its listing standards are relatively strict, requiring companies to have certain profitability, shareholder equity, stock price and circulation, etc. .

The New York Stock Exchange is one of the most influential stock markets in the world, and its stock indexes are widely used as an important reference for measuring the U.S. and global economy and finance. Its major indexes include the Dow Jones Industrial Average, S&P 500, NYSE Composite, etc.

New York Stock Exchange Index

Dow Jones Industrial Average

The Dow Jones Industrial Average (DJIA or Dow for short) is one of the oldest and most well-known stock indexes in the United States. It was founded in 1896 by Charles Dow Jones, founder of the Wall Street Journal, and reflects 30 securities companies in New York. Changes in the stock prices of large blue-chip companies listed on the exchange or Nasdaq. It is a value-weighted index, meaning that each company's weight is calculated based on its stock price, without regard to its market capitalization or float.

The Dow Jones Industrial Average is considered an important indicator of the U.S. stock market and the overall economy. Its rise and fall will affect investor confidence and sentiment. It is also one of the most widely followed stock indexes in the world and is used by many media and analysts to assess the financial situation in the United States and the world. However, it also has some shortcomings, such as including only 30 companies, which does not represent the diversity of the entire market; calculating weights based only on stock prices, ignoring the size and importance of the company; and not considering factors such as dividend income.

S&P 500 Index

The Standard & Poor's 500 Index (S&P 500) is one of the most widely used stock indexes in the United States. It was created by Standard & Poor's in 1957 and reflects 500 large-cap stocks listed on the New York Stock Exchange, Nasdaq or the American Stock Exchange. The company's stock performance. It is a market capitalization weighted index, which calculates the weight of each company based on its market capitalization and is regularly adjusted to reflect changes in stock issuances, splits, mergers, etc.

The S&P 500 Index is considered the best representative of the U.S. stock market as it covers major companies in various industries and fields and accounts for approximately 80% of the total market capitalization of the U.S. stock market. It is also the benchmark or tracking object of many funds and index products, such as the S&P 500 Index Fund (SPY) and S&P 500 Index futures. Its rise and fall will affect the trend of global financial markets and investors' decisions.

NYSE Composite Index

The NYSE Composite is a stock index created by the New York Stock Exchange in 1965 and reflects the stock performance of all companies listed on the New York Stock Exchange. It is a free-float market capitalization weighted index, which calculates the weight of each company based on its free-float market capitalization and is regularly adjusted to reflect changes such as new listings or delistings.

The NYSE Composite Index is considered the most comprehensive and accurate indicator of the NYSE because it includes all types and sizes of companies listed on the NYSE, including domestic and international companies. It is also an important benchmark and analytical tool that can be used to compare stock performance and risk returns across regions and industries.

New York Stock Exchange Listed Companies

There are approximately 2,800 companies listed on the New York Stock Exchange, many of which are world-renowned companies and brands, such as Apple, Coca-Cola, Disney, and Exxon Mobil. , General Electric, McDonald's, Microsoft, Walmart, etc.

These listed companies not only have leading positions and competitive advantages in their respective industries, but also have outstanding performance in innovation, governance, social responsibility and other aspects. They attract investors and consumers from around the globe and have a profound impact on the economic and social development of the United States and the world.

Impact of the New York Stock Exchange on Investors and the Economy

The New York Stock Exchange is an efficient, transparent and fair market platform that enables effective capital allocation and value discovery between companies and investors. It provides companies with opportunities to raise funds, increase visibility, enhance credibility, and expand markets, and provides investors with options such as diversification, liquidity, risk management, and returns.

The New York Stock Exchange is also a force for innovation, development and change, constantly introducing new technologies, products and services to meet the needs and challenges of the market. It also actively participates in social responsibility and sustainable development initiatives, supporting improvements and progress in areas such as education, environment, diversity, and human rights.

The New York Stock Exchange is one of the most influential stock markets in the world. It not only reflects the financial situation in the United States and the world, but also shapes the financial future of the United States and the world.

Conclusion

The New York Stock Exchange is an exchange with a long history and tradition, and it is also an exchange that is constantly innovating and developing. It is one of the most important financial centers in the United States and globally, and is the listing location for many well-known companies and brands. Its stock indexes are widely used as an important reference for measuring the U.S. and global economy and finance. It provides companies and investors with an efficient, transparent and fair market platform, and is also a force promoting innovation, development and change.

It not only reflects the financial situation in the United States and the world, but also shapes the financial future of the United States and the world.