The Origin of the New York Stock Exchange

New York Stock Exchange

When New York Stock Exchange (NYSE) and Archipelago Holdings merged, these two entities were renamed the New York Stock Exchange Group. This pairing is also known as the “Big Board,” and it is fully electronic.

Five rooms are utilized by NYSE for trading, and the Big Board’s headquarters is found at 18 Broad Street, New York City. NYSE traces back its origin back to 1972. However, it was in 1817 when it was called the New York Stock Exchange because of drafting of the constitution.

The amount of currency that goes through NYSE on a daily basis makes it the world’s largest stock exchange. It maintains the second rank in terms of the company’s listing being surpassed only by NASDAQ. Exchange in the world’s capitalization amounts to $2.1 trillion with non-US based companies owning about $1.7 trillion.

NYSE operates like auctions. All of the listed companies trade in one place. Each company listed sends a broking specialist that works as an auctioneer at the company’s post. It operates by having purchasers and sellers grouping together around a specific post, and then an auction happens. Equity and fairness results from this kind of trading, creating a fair price for stocks for both purchasers and sellers. NYSE stands out from other electronic stock exchanges because of the interaction among the sellers and the purchasers.

Recent changes are happening in the NYSE, though. There are increasing orders being delivered electronically to the trading floor. There is a change in human interaction and electronic markets that result to a hybrid market.

A number of Hollywood box office movies made NYSE famous. Its development has also been an interesting one. Wall Street, which is just outside the premises of NYSE, experienced a bomb threat in 1920. Thirty-three people were killed when the bomb exploded and more than 400 people were injured. Buildings surrounding the explosion also experienced considerable damage. Unfortunately, the culprits were never apprehended.

Historical events like the famous Black Thursday were one of the famous crashes of Wall Street. This occurred on October 24, 1929. Many historians consider this day to be the precedence of the Great Depression.