New York Stock Exchange

 

NewYork Stock Exchange 300x189 - New York Stock Exchange

New York is one of the largest cities in the world. The degree of development of this city can be judged not only by the number of population or standard of living, but also by the value that New York City has for the global currency and securities market. This city is the currency and financial center of the North American currency market and home to the world’s largest major stock exchange, the New York Stock Exchange. In order to fully disclose this fact, it is worth noting that the New York Stock Exchange is not only a symbol of the financial power of the United States, but also a symbol of the financial industry as a whole. This is where the world-famous Dow Jones index is determined, as well as the NYSE Composite and NYSE ARCA Tech 100 Index.

The advantage of the New York Stock Exchange, which distinguishes it from other stock exchanges, are rather strict listing conditions and availability of specialists. Functions of the latter are various, but in general they can be reduced to two main directions: support of liquidity and orderly trading on the stock exchange and maintenance of an open book by a specialist. As for the rest of the market participants, there is a strict distribution of them into categories:

1. Listed companies

2. Pension and mutual funds (Institutional investors)

3 Individual investors are Americans or unit trusts who own the securities(Individual investors)

4. Brokerage companies, brokerage houses – trade either on their own accounts, placing orders “on the floor” or by phone, or on the accounts of clients, fulfilling their orders (NYSE Member Brokerage firms)

5. Brokers on the floor (Floor Brokers)

6. Commission brokers – brokers working for brokerage houses (Commission brokers)

7. Brokers who place orders of clients – independent brokers (Independent Brokers)

8. Specialists

What concerns the listing on the New York Stock Exchange – its conditions are the most severe among all the conditions imposed by the stock exchanges, located in other currency – financial centers. In order to be listed on this stock exchange, a company must meet the following requirements:

1. Have an income for the year (excluding tax) of $2.7 million

2. Profit for the last two years of the company’s operation should be not less than 3.0 million dollars

3 Material assets of the company must be valued at least at $18.0 million

4. The value of the shares owned by the company and in public domain must be at least $1.1 million

5. The market price of the company’s shares is $19.0m

6. Shareholders owning 100 or more shares of the company must be at least 2 thousand

7. During the last 6 months the average monthly trade volume should exceed 100 thousand dollars

These conditions are currently met by 2800 companies listed on the stock exchange, 450 of which are foreign companies from 50 countries. It is worth noting that the companies included in the register are called “Blue Chips”, which implies the stability and reliability of the company.