New York stock market
The New York stock market consists of many different stock exchanges with different focuses. New York with its legendary Wall Street has become a symbol for the stock market, Wall Street runs through the historical centre of the financial district in lower Manhattan and was the first permanent home for the New York Stock Exchange. Today, a large number of United States stock and other exchanges can be found here and in the surrounding financial district.
The New York stock market was the scene for the Wall Street Crash of 1929, one of the most serious stock market crashes in the history of American stock exchange. The crash began with the so called “Black Thursday” and was followed a few days later by a “Black Tuesday” which caused general panic.
The New York stock market is centred on the following stock exchanges:
New York Stock Exchange (NYSE)
American Stock Exchange (AMEX)
NASDAQ
New York Board of Trade (NYBOT)
New York Mercantile Exchange (NYMEX)
NYSE Arca
The New York Stock Exchange (NYSE)
The New York Stock Exchange is one of the major hubs of the New York stock market. Founded in 1817, it is today the largest stock exchange on the planet by dollar volume and has the second most securities of all stock exchanges. As of December 2006, the New York Stock Exchange has a global capitalization of US $25 trillion. This part of the New York stock market is operated by NYSE Euronext; the result of a merger between NYSE, the Archipelago Holdings, and Euronext. The trading floor is found at 11 Wall Street and consists of four rooms. The New York Stock Exchange once had a fifth room om 30 Broad Street, but this was closed in 2007.
The American Stock Exchange (AMEX)
The American Stock Exchange can trace its history back to 1842 when it was one of several outdoor markets for the trade of government securities. By 1921, this part of the New York stock market had moved indoors to 86 Trinity Place. Until 1929, the exchange was known as the New York Curb Exchange. Today, the American Stock Exchange is a mutual organisation owned by its members. Its core business has shifted over the years, and is today primarily focused on options and Exchange-traded funds, but it still trades in small and mid-size stocks as well.
NASDAQ
The acronym NASDAQ stands for “National Association of Securities Dealers Automated Quotations system” and this part of the New York stock market is a fairly new addition, founded as late as 1971. NASDAQ was created by the National Association of Securities Dealers and is today owned and run by The Nasdaq Stock Market, Inc.
NASDAQ is famous for having the biggest electronic screen-based equity securities market in the entire United States, and also for trading more shares per day (on average) than any other United States stock exchange. Roughly 3,200 companies are listed with NASDAQ.
New York Board of Trade (NYBOT)
The New York Board of Trade (NYBOT) is a physical commodity futures exchange dating back to 1870 when it was founded as the New York Cotton Exchange (NYCE). In 1998, the New York Board of Trade became the parent company of both NYCE and CSCE (the Coffee, Sugar and Cocoa Exchange). Since 2007, NYBOT is a wholly-owned subsidiary of IntercontinentalExchange (ICE).
This part of the New York stock market has one single floor, which is regulated by the Commodity Futures Trading Commission. If you want your company to trade on the exchange, you must send your own independent broker. The exchange employees only record the transactions that are taking place and they have no hand in the actual selling and buying.
New York Mercantile Exchange (NYMEX)
Founded in 1882, the New York Mercantile Exchange has today grown into the world's largest physical commodity futures exchange. It has to main divisions: the New York Commodities Exchange (COMEX) and the New York Mercantile Exchange (NYMEX). They used to be separate companies but have now been merged. NYMEX Holdings, Inc. is the parent company of NYMEX.
Today, this part of the New York stock market facilitates the trade of metals, energy products, and other commodities worth billions of dollars, and the prices on this exchange sets the standard for what you pay for commodities throughout the world. There is one trading floor plus an overnight electronic trading computer system.
To milder the consequences of future terrorist attacks, natural disasters and similar, the New York Mercantile Exchange have constructed a backup trading floor outside New York City. This extra floor has backup computer system, 2,000 telephones and 700 trader's booths.
NYSE Arca
NYSE Arca was previously known as ArcaEX, which is an abbreviation of Archipelago Exchange. NYSE Arca exists online only and facilitates trade with securities. In terms of shares traded, NYSE Arca is now the second biggest Electronic Communication Network in the world. As of 2007, roughly one out of every six shares that were traded on American financial markets, including the New York stock market, was traded through the NYSE Arca system. When it comes of securities listed with NASDAQ, NYSE Arca traded securities make up roughly 20% of the trading volume.
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