New York Stock Exchange Definition
The New York Stock Exchange (NYSE) is the world's largest stock market and traces its roots to the trading of bank stocks and bonds issued by the new federal government in the 1790s. The NYSE provides a central market where businesses seeking capital and investors looking for opportunities to invest can interact. As such, the NYSE plays a vital role in the U.S. economy, increasing the liquidity of securities and promoting business growth and economic expansion.
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Origin
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The NYSE began in 1792 with the inception of regular securities trading in New York City. Originally, transactions were made outdoors, a practice known as curb trading.
Floor Traders
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Throughout the 20th century, stockbrokers sent customer orders to "floor traders" at the NYSE, who then found a buyer or seller, settled on a price and completed the transaction.
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Innovation
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The NYSE introduced the stock ticker in the 1860s, followed by many other innovations, including electronic trading at the end of the 20th century.
Trading Today
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By 2008, more than half of all NYSE transactions were electronic, though floor traders still set prices and execute large institutional orders.
Hours
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NYSE trading begins at 9:30 a.m. and ends at 4:00 p.m. every Monday through Friday except holidays. Only rarely does the exchange deviate from this schedule.
Growth
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Starting in the early 2000s, the NYSE engineered a series of acquisitions and mergers. As NYSE/Euronext, it leads an international network that includes the Paris and London stock exchanges.
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