The size of the New York Stock Exchange (NYSE) is measured by its market capitalization. At US$13.39 trillion (2010) it is the largest in the world. The trading volume daily is valued at US$153 billion.
The NYSE is at 11 Wall Street in Lower Manhattan, New York City. The NYSE Euronext runs the exchange. The trading floor is at 11 Wall Street. Trading takes place in 4 rooms.
The building where the trading takes place was declared a National Historic Landmark in 1978. It is the oldest and biggest exchange in America. Due to the high trading volume, it has a profound effect not just on the American economy, but the world economy as well. Stock markets in Europe and Asia usually follow the direction the NYSE goes whether it is up or down.
The size of the New York Stock Exchange is matched only by the number of companies listed there. More than 3,500 companies are listed. There are more than 1,500 employees in the NYSE.
A board of directors handles the day-to-day affairs of the company. The NYSE is responsible for the stocks and securities industry policies. They also manage the sales and stock trades. All securities that can be traded or sold are listed.
To be publicly listed in the NYSE, the company income must be at least two and a half million dollars prior to taxes. They must offer stocks for trade and produce yearly reports. The stocks can be sold and traded after the company is listed. The exchange can be bought or sold from traders or company representatives.
Buying and Selling
A lot of the buying and selling nowadays is done electronically. The NYSE has this option but there are also floor representatives who take care of these requests.
A lot of the trading is done by the members on the floor. These people have bought seats at the place so they can make direct trades. Trading on the floor is regarded as a privilege so the seats are very costly.
On October 19, 1987 the Dow Jones dropped 22.6% or 508 points. The loss was so big that trading was halted. The market however, eventually recovered. Today there are built-in controls to handle steep drops.
The size of the New York Stock Exchange continues to increase as more companies enlist in it. Today, the exchange is regarded as one of the major indicators of the state of the US economy.