What Really Happens on the Floor of the NYSE

In this episode of The Investopedia Express podcast, live from the New York Stock Exchange (NYSE), we speak with Peter Tuchman, one of the most iconic traders on the world's most famous stock exchange. Peter explains what actually takes place on the exchange, how it has evolved over time, and why—in the age of artificial intelligence (AI)—human beings will always be essential to the capital markets.

Plus, what in the world is going on with the U.S. labor market? We break down the latest jobs report, and why it defies fears of a recession.

Meet Peter Tuchman

Peter Tuchman, nicknamed the "Einstein of Wall Street," is one of the most iconic brokers on the New York Stock Exchange (NYSE), known for his facial expressions and reactions to market news.

Peter's career on Wall Street dates back over 35 years. In his long career as a broker, Peter witnessed the stock market crash of 1987, the boom of the 1990s, the dotcom bubble burst, the 2008 financial crisis, and beyond.

What's in This Episode?

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Term of the Week: Convertible Security

This week's term comes to us from Parker, who suggests 'convertible security.' And we like that term, given the rebound in some convertible bonds this year after a terrible 2022. But what is a convertible bond, or convertible security, anyway?

According to my favorite website, a convertible security is an investment that can be changed from its initial form into another form. The most common types of convertible securities are convertible bonds and convertible preferred shares, which can be converted into common stock.

A convertible security specifies the qualifying terms and price at which it can be converted, and pays a periodic fixed amount—a coupon payment for convertible bonds and a preferred dividend for convertible preferred shares. Great suggestion, Parker!

Links for Show Notes

• Peter Tuchman: "Einstein of Wall Street"
• Nonfarm Payroll: What It Means and Why It's Important
  
• Convertible Security: Definition, How It Works, Example
  
• What to Expect in the Markets Next Week
• CME Group FedWatch Tool