The term 'New York Stock Exchange (NYSE)' is included in the Economics edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition.
The NYSE is the acronym for the world’s largest stock exchange, the New York Stock Exchange. With a market capitalization of companies listed on it totaling at $11.92 trillion dollars in August 2010, it also possessed an average day trading value of around $153 billion in 2008. By market capitalization, the NYSE has no rivals for size.
The New York Stock Exchange is owned and operated by the NYSE Euronext company. This outfit came into being in 2007 when the NYSE merged with the completely electronic Euronext stock exchange. Four rooms make up the trading floor of the NYSE that is found at 11 Wall Street. Its main building is found at 18 Broad Street on the corners of Wall Street and Exchange Place. This building became a National Historic Landmark back in 1978, along with its sister 11 Wall Street Building.
Occasionally known as “the Big Board,” the New York Stock Exchange allows for sellers and buyers of stocks to exchange shares in all of the companies that are listed for public trading. Its trading hours prove to be 9:30 AM to 4:00 PM on Monday to Friday. Holidays are spelled out in advance by the exchange itself.
The NYSE has always operated as an in person trading floor since its inception in 1792. Today, this works in an auction format that is ongoing. Floor traders here are able to make stock transactions for investors. They simply gather together surrounding the particular company post where there is a specialist broker working as auctioneer in open outcry format to get buyers and sellers together and to oversee the auction itself. This specialist works directly for the company that is an NYSE member and not the exchange itself. These specialists will commit their own money to assist the trades about ten percent of the time. Naturally, they also give out information that serves to bring together sellers and buyers.
In 1995, NYSE began making the automation transition for the auctions. This started with hand held computers that were wireless. Like this, traders were capable of executing and getting orders electronically. This ended a 203 year tradition of paper based trades.
From January 24 of 2007, most every stock on the NYSE is able to be traded on the electronic Hybrid Market. With this ability to send in customer orders for electronic confirmation immediately, orders can also be sent to the floor for auction market trade. More than eighty-two percent of the NYSE order volume came to the floor electronically in only the first three months of that first year.
Only those who own one of 1,366 actual seats on the exchange are permitted to trade shares directly on the exchange. Such seats are sold for enormous sums. The highest price paid for one amounted to $4 million in the tail end of the 1990’s. The highest price ever paid adjusted for inflation proved to be $625,000 in 1929, which would amount to more than six million dollars in terms of 2010 dollars. Since the exchange became a public company, the seats have been instead sold in one year licenses.