What is the 'New York Stock Exchange - NYSE'
The New York Stock Exchange (NYSE) is a stock exchange based in New York City that is considered the largest equities-based exchange in the world, based on total market capitalization of its listed securities. Formerly run as a private organization, the NYSE became a public entity in 2005 following the acquisition of electronic trading exchange Archipelago. The parent company of the New York Stock Exchange is now called NYSE Euronext, following a merger with the European exchange in 2007; the NYSE Euronext was acquired by Intercontinental Exchange.
BREAKING DOWN 'New York Stock Exchange - NYSE'Also known as the "Big Board," the NYSE relied for many years on floor trading only, using the open outcry system. Many NYSE trades have transitioned to electronic systems, but floor traders are still used to set pricing and deal in high-volume institutional trading.
The NYSE Today
The NYSE is open for trading Monday through Friday 9:30 AM to 4:00 PM EST, as of 2016. The stock exchange is closed on all federal holidays. When federal holidays fall on a Saturday, the NYSE is sometimes closed the preceding Friday. When the federal holiday falls on a Sunday, the NYSE may be closed the following Monday.
A series of mergers have given the New York Stock Exchange its massive size and global presence. The company started as NYSE before adding the American Stock Exchange and merging with the Euronext. The NYSE was purchased in an $11 billion deal by the Intercontinental Exchange in 2013.
History of the New York Stock Exchange
The New York Stock Exchange dates back to May 17, 1792. On that day, 24 stockbrokers from New York City signed the Buttonwood Agreement at 68 Wall Street. The New York Stock Exchange kicked off with five securities, which included three government bonds and two bank stocks.
Thanks to its head start as the major U.S. stock exchange, many of the oldest publicly traded companies are on the NYSE. Con Edison is the longest listed NYSE stock, tracing its roots back to 1824 as New York Gas Light Company. Along with American stocks, foreign-based corporations can also list their shares on the NYSE if they adhere to certain Securities and Exchange Commission (SEC) rules, known as listing standards.
The New York Stock Exchange passed the milestone of one million shares traded in a day in 1886. In 1987, 500 million shares were trading hands on the NYSE during a normal business day. By 1997, 1 billion shares were traded daily on the NYSE.