New York Stock Exchange: All About the New York Stock Exchange
Find out everything about the main New York stock exchange!
Announcements
The New York Stock Exchange is not only the largest exchange in New York, but also the largest in the world!
In fact, it is no wonder that its fame is recognized even by people who do not have much experience in the subject.
Representing over 30% of global market capitalization, the NYSE traded an average of over 10 billion shares daily in 2020.
Check out more information about the New York Stock Exchange below.
What is the New York Stock Exchange (NYSE)?
The New York Stock Exchange (NYSE) is the New York Stock Exchange. It is also called “The Big Board”.
Founded in 1792, it is considered the largest stock exchange in the world.
The NYSE is a trading floor, just like B3 here in Brazil. Although most transactions take place entirely electronically, the main NYSE still offers the possibility of in-person trading.
Furthermore, it is responsible for two extremely relevant indexes:
• S&P 500 (SPX): is a financial index that lists the largest stocks listed on US stock exchanges.
• Dow Jones Industrial: is a financial index used to represent the situation of the North American stock market. It is based on the price of 30 US companies.
What is the history of the New York Stock Exchange?
In the heart of Manhattan Island, in the famous financial center of Wall Street, is located the NYSE.
It was founded in 1792 (17th century).
On May 17 of that year, 24 brokers signed a document known as Buttonwood Agreement.
The agreement's guidelines defined how asset negotiations should occur between brokers. As such, the intermediation of commodity auctioneers was dispensed with.
The first financial transactions on the stock exchange took place in the Tontine Coffee House, which was built by market agents in 1793.
How important is the New York Stock Exchange for the world market?
As the NYSE has the world's largest listed companies, it acts as a kind of thermometer for the financial market.
Its performance is reflected in the results of stock exchanges around the world.
In other words, regardless of what happens in the Brazilian economy or in other countries, these exchanges will reflect what is happening on the NYSE.
Important New York Stock Exchange Dates
The NYSE experienced a major period of growth between 1806 and 1901.
At that time, trading volume increased by 600%.
But obviously, because of the volume of assets, it was necessary to find a larger location to conduct the negotiations.
A competition was held to find out who would be the architect responsible for this project. The winner was called George Post!
For over 200 years, the New York Stock Exchange has experienced moments that impacted the American and global economy, such as:
1929 Crisis
The 1929 crisis, also known as the Great Depression, was an economic recession that hit international capitalism in the 1920s.
On October 24, 1929 (known as Black Thursday), the New York Stock Exchange crashed.
During the crisis, stocks traded on the NYSE suffered some of the biggest declines on record.
2008 crisis
The 2008 crisis also marked the history of the NYSE.
In fact, it is considered by many experts to be the biggest economic crisis in the US since 1929.
The 2008 crisis began as a result of real estate speculation in the United States.
It was the so-called real estate bubble, caused by a huge increase in property values.
When it reached a price above the market, the sector entered into crisis.
The fact is that the appreciation was not accompanied by the financial capacity of citizens to bear the increased costs involved in purchasing a property.
Coronavirus crisis
The coronavirus crisis has caused the NYSE to suffer its fastest decline ever.
Between February and March 2020, the stock market accumulated a loss of 35%.
What is the difference between the NYSE and Nasdaq?
Before anything else, you need to know that both deal with shares of large companies.
But while the NYSE concentrates more traditional assets, the Nasdaq is an American exchange with more technology companies.
Furthermore, the way assets are traded is also another distinguishing point between the two exchanges.
At the NYSE, transactions are carried out through the auction market, meaning that investors buy and sell securities among themselves.
Nasdaq is more centralized and trading is carried out through resale, meaning that it occurs through intermediaries.
It is also important to mention that Nasdaq is a fully digital exchange, unlike the NYSE.
What are the New York Stock Exchange's opening hours?
NYSE trading takes place Monday through Friday (excluding holidays) from 9:30 a.m. to 4:00 p.m. ET.
This time zone is one hour behind Brazil's official time.
How many companies are on the New York Stock Exchange?
The number of companies listed on the NYSE is approximately 2800.
Just to give you an idea, B3, which is Brazil's stock exchange, has just over 300 shares available for trading.
How to invest in the New York Stock Exchange?
The main way to invest in the NY stock exchange is through BDRs (Brazilian Depositary Receipts).
Other investment options are Brazilian ETFs that replicate the S&P 500 index: IVVB11 and SPXI11.
There is also the possibility of opening an account with a US brokerage firm and choosing the companies listed on the stock exchange. The problem is that this option is a little more bureaucratic and involves spending in dollars.
Conclusion
Now you know what the New York Exchange is and the importance that the largest stock exchange in New York has for the United States and the world, as well as learning about Nasdaq, another important stock exchange in the USA.
Interested in investing in the NYSE? Then take a look at our other article about the American stock market.
