The largest equities-based exchange in the world: The New York Stock Exchange
#Cosmoread: Known as the largest equities-based exchange in the world, the New York Stock Exchange (NYSE) is otherwise referred to as the “Big Board.” It is notably one of the largest marketplaces for the securities and stocks trading. In the beginning, the brokers have directly been dealing with each other through the Buttonwood Agreement. Signed by twenty-four stock brokers outside of 68 Wall Street, New York under a buttonwood tree back in 1792. This agreement had two provisions (a) direct dealing with the brokers keeping aside and completely avoiding the auctioneers, (b) 0.25% commission rate was finalized.
This Agreement reads “We the Subscribers, Brokers for the Purchase and Sale of the Public Stock, do hereby solemnly promise and pledge ourselves to each other, that we will not buy or sell from this day for any person whatsoever, any kind of Public Stock, at a less rate than one quarter percent Commission on the Specie value and that we will give preference to each other in our Negotiations. (In Testimony of which we have set our hands this 17th day of May in New York, 1792)”
This Buttonwood Agreement was the stepping-stone of the New York Stock & Exchange Board now referred to as the New York Stock Exchange.
With an estimated average daily trading value of roughly around roughly 153 Billion American dollars, this world famous financial market is located at the 11 Wall Street in the New York City. It provides the buyers and sellers with a physical location, where they can come together for share and stock trading in public companies that are duly registered with the Securities and Exchange Commission.
A continuous auction format is maintained on the trading floor of the New York Stock Exchange maintains wherein the traders perform stock transactions on behalf of investors. The NYSE contains four rooms that are used for the facilitation of trading activities. To further explain, each room has been prearranged based on the market and the securities that are a part of the transaction activity.
The NYSE Composite Index was created in the mid-1960, with a base value of closely 50 points. In an attempt to elevate the profile of the composite index, the NYSE set its new base value of 5,000 points equal to the 2002 yearly close. The beginning of the trading activity at NYSE starts with the opening bell that is rung at around 9.30 AM ET and end of each trading day is marked by the closing bell rung at around 4PMET. These bells are placed in each of the four main sections of the NYSE and the ring at the same time; once a button is pressed. Earlier, the original signal was a Gavel, but later the NYSE decided to adopt a Gong to mark the beginning and end of the day. It is interesting to see popular celebrities and well-known executives from big corporations push the button to signal the ring.Many famous people not belonging to the world of business has rung the bell. Athletes such as Joe DiMaggio, Olympic swimming champion Michael Phelps, famous rapper Snoop Dogg and politicians such as Rudy Giuliani Nelson Mandela have all had the honor of ringing the bell. This is one very interesting fact to know about the NYSE.