New York Stock Exchange, a Global Marketplace

Topics: New York Stock Exchange, Stock broker, Stock market Pages: 2 (766 words) Published: August 8, 2002
The New York Stock Exchange traces its origin back 200 years. Centuries of growth and innovation the NYSE remains the world's foremost securities marketplace. Over the years its commitment to investors has been unwavering and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. The NYSE has grown to become the global marketplace of today.

Each day on the NYSE trading floor and auction takes place. Open bid and offers are managed on the trading floor page of by exchange members acting on behalf of institutions and individual investors. Buy and sell orders for each listed security meet directly on the trading floor in assigned locations. The NYSE trading floor contains 20 posts with more that 400 trading positions. Prices are determined through supply and demand. Stock buy and sell orders funnel through a single location ensuring that the investor no matter how big or small is exposed to a wide range of buyers and sellers.

The NYSE is an agency auction market. This means The essential point is that trading at the NYSE takes place by open bids and offers by Exchange members, acting as agents for institutions or individual investors. A member firm is a company or individual who owns a "seat" on the trading floor. Only member firms are allowed to buy and sell securities on the trading floor. To become a member firm, a company must meet rigorous professional standards set by the Exchange. The number of seats has remained constant, at 1,366, since 1953. Institutional investors are corporations that invest on behalf of individuals and companies. Institutions include pension funds, mutual funds, insurance companies and banks Buy and sell orders meet directly on the trading floor, and prices are determined by the interplay of supply and demand. In contrast, in the over-the-counter market and the price is determined by a dealer who buys and sells out of inventory. At the...
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