Trading The New York Stock Exchange

April 4th, 2008 by Kingsx

The New York Stock Exchange is the largest marketplace of equities in the world based on the combined value of its US currency volume and listed securities. An achievement started by several enterprising men more than two centuries ago. Who could have said that a mere agreement, made under a buttonwood tree in Wall Street, would play a tremendous role in the global equities market?

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.

Specialist auctioneers, who are authorized to handle the buying and selling of exchange members representing various international clients, are employed by an elite group of New York Stock Exchange firms. Only the most solid and financially capable firms could own a “seat” in the exchange, the most sought-after commodity in the market. Owners of these seats have the privilege to trade billions of dollars directly in the exchange.

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 maintains its reputation of protecting investors through the regulation of activities by its member-brokers. Seat ownership is not only a huge responsibility, it is only for solid and secure corporations who can put-up the millions of dollars needed to become a member of the exchange.

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.Before you start to invest, purchase or trade company shares, check out how you can trade stock and learn about the financial market at arbitrage trading

Posted in Business Opportunities, Stock Market |

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