What is NYSE?
NYSE (New York Stock Exchange) is the world's largest exchange for buying and selling stocks . It is also an important source of liquidity, allowing investors to trade millions of shares per day in a practical and efficient marketplace.
The NYSE was founded in 1792 by 24 stockbrokers under the Buttonwood Agreement and is governed by the NYSE Group. Our trading room is located at 11, Wall Street, including 5 rooms used for trading activities. The main building is listed on the National Register of Historic Places and is located at 18 Broad Street, between the corner of Wall Street and Exchange Place.
Transaction method and time
For many years the NYSE traded only on the Exchange and used an open auction system. Many NYSE trades have moved to electronic systems, but Exchange traders still come in to bid and trade in large volumes.
Currently, the NYSE is open for trading Monday through Friday, from 9:30 a.m. to 4:00 p.m. ET. Stock exchanges are closed on all federal holidays. When a federal holiday falls on a Saturday, the NYSE sometimes closes on the Friday before that. When a federal holiday falls on a Sunday, the NYSE may close the following Monday.
Primary and secondary market
A company listed on the NYSE can attract investment capital to grow the business. This is done through an IPO stock offering, which is the shares that are issued to the public for the first time by the company. Companies that want to sell shares on the NYSE must meet certain listing requirements, such as share price, market capitalization, and a minimum number of shares.
The majority of trading on the NYSE is in the secondary market. For example, an investor is looking to buy IBM stock, he cannot buy directly from IBM but buy from someone else who owns IBM stock and has a need to sell it.
Evolution of trading activities
Trading on the NYSE is done primarily through member and specialist brokers. An investor who wishes to buy or sell shares of a company listed on the NYSE will contact a broker who is a member of the NYSE. The broker notes the information, then contacts the staff on the NYSE Exchange and the staff on the Exchange will transmit the buy order to the experts.
Experts facilitate all buy and sell orders to take place, ensuring a streamlined trading process. In addition, experts will contact the broker to inform you that the transaction has gone smoothly, and also report the details of the transaction. However, nowadays most details of transactions are communicated electronically.
The NYSE is strictly regulated to maintain an orderly and fair system for investors. The NYSE is regulated by the US Securities and Exchange Commission (SEC). The NYSE itself also closely monitors all trades that take place on the Exchange. Both the SEC and the NYSE have a responsibility to ensure that trading is fair and efficient.
Comparison between NASDAQ and NYSE
In the US, NYSE and NASDAQ are two important stock exchanges, accounting for a large volume of trading in North America as well as globally. However, the NYSE and NASDAQ are very different in terms of how they work and the types of stocks that are traded.
This is the first difference between the two exchanges NYSE and NASDAQ. If the NYSE Exchange all trades are done in one place, that is on the NYSE stock exchange located in New York and when the bell rings, that's when everyone knows the new trading day begins.
As for NASDAQ, it is different, it does not have a specific location, so investors have to trade based on a telecommunications network connected to the internet through a modern computer system that is connected to each other.
How to trade
The NYSE is the oldest stock exchange in the world, so its value has remained unchanged over the years. This is the place where millions of different investors compete, they directly place buy and sell orders and match orders right on the Exchange.
This means that the broker plays a particularly important role, as the link between investors and the market. On the other hand, NASDAQ is different, it is a dealer market which means that those who are trading on NASDAQ are transacting through an intermediary, not directly buying and selling between other investors like the NYSE.
Both the NYSE AND NASDAQ need a coordinator to keep all trading activities smooth and free of congestion. It can be said that these are the most important people on the stock exchange, but for the two exchanges, the coordinators have different meanings.
With the NYSE Exchange, they are called experts, the main task is to connect buyers and sellers and ensure this connection is not interrupted. As for the NASDAQ exchange, the coordinators are called market makers, but their main purpose is to create a market for securities.
The NASDAQ exchange is commonly known as a high-tech exchange that attracts many companies that conduct transactions over the internet or other electronic means. Therefore, stocks on this Exchange tend to be more volatile and growth-oriented.
On the other hand, companies on the NYSE are usually established, established, reputable companies. Among the companies listed on this exchange, there are many blue-chip companies and companies in the old industries, the securities on this Exchange are usually more stable.