The New York Stock Exchange Is The Largest Exchange In The World
In 1792, twenty-four stockbrokers signed the Buttonwood Agreement under a buttonwood tree in Number 68 Wall Street. They drafted a constitution organizing themselves into the New York Stock & Exchange Board, what is now the world’s largest equities marketplace.
Because it is the largest equities marketplace in the world, billions of dollars of shares are traded daily. The total global market value of the listed companies is estimated at $25 trillion dollars. This includes non-U.S. companies which are worth $9.6 trillion dollars. The stock exchange’s primary function is to allow investors to buy and sell shares of the publicly traded companies they list. These companies are a cross-section of large, midsize and small capitalization companies.
The New York Stock exchange is comprised of 1,366 members who must pay for what are called “seats” in order to be able to directly trade shares on the exchange. However, the exchange does currently sell one year licenses to trade directly as well. Only those who can trade directly can buy or sell stocks, so it is well worth the several million dollars it can cost to get a seat on the exchange when you consider any one company who owns a seat or has a license is trading on behalf of millions of clients.
The goal of the New York Stock exchange is to ultimately bring buyers and sellers of publicly traded companies together in a fair marketplace where every one has a fair chance to purchase stocks. This allows for companies to sell stocks to raise money for business operations, while at the same time giving the general public the opportunity to make investments in major companies in the United State and around the globe. This means that anyone can go to a brokerage firm that is allowed to trade directly and buy stock in any company from Exxon to General Foods.
If you only by a few shares in a large company like Coca Cola, you might not think your investment counts for much, but that isn’t exactly true. In order for a company to list shares on the exchange, the exchange requires that the company provide the same complete financial information to anyone who owns even one share of stock.. This includes and invitation to the annual stockholder’s meeting. Find out more about the stockmarket at http://www.learningtotradestock.com
The New York Stock exchange doesn’t allow just anyone to trade, and protects investors by limiting the number of seats on the exchange and keeping the criteria and the price to trade directly on the exchange extremely high. A seat on the exchange can cost up to 4 million dollars, if one is even available.
In the two hundred years of its existence, the New York Stock Exchange has an endless list of historical facts and trivia to share. The Bank of New York was the first company listed under the buttonwood tree. Con Edison, listed as the New York Gas Light Company, has been the exchange’s longest member. In 1878, the exchange started using telephones but only installed electric lights in 1883.
The New York Stock Exchange also issues licenses to directly trade to its members. This license and the fact that they are being regulated by the exchange, is another way of ensuring the public that their money are being invested by capable companies.
