New York Stock Exchange – the heart of global stock trading
For most New Yorkers and tourists, the Wall Street Stock Exchange building has only aesthetic interest. However, brokers, traders and other specialists know that the New York Stock Exchange is the symbol of America’s financial strength and the most influential player in the global stock market.
The history of creating NYSE
The world’s largest stock market was launched in the XVIII century. On May 17, 1792, the 24 New York Stock Exchanges signed an agreement that marked the start of the New York Stock Exchange. At the same time, they formed a list of shares for trading, whose value was tied to the capitalization indicators.
After 25 years, the organization approved its constitution, then – achieved official status, received the current name and began to increase influence.
At the beginning of the 20th century, the stock exchange entered into competition with the London Bank, which was able to increase the flow of foreign capital due to an increase in the discount rate. Because of this, many large investors began to leave the New York Stock Exchange and move to work with the British market. As a result, in 1907, the Dow Jones index fell, and quotations of securities and stocks fell, as well.
After the First World War, the site regained its leadership position in the global stock market, but in 1929, the Great Depression began. The excessively high growth rates of the securities market were provoked by large loans that shareholders took for trading. As a result, the stock market broke when, in one day, known as
Black Thursday, 13 million shares were sold. Many investors went bankrupt then, and stagnation in the American economy lasted 10 years, after which the stock exchange and the country began to return to active life.
The current position of the New York Stock Exchange
At the end of 2017, the capitalization of the New York Stock Exchange reached a level of $ 26 billion. It traded securities of more than 3,000 companies from different parts of the world. To get to the listing site, you need to match some of its parameters. For example, the income for the previous 2 years must be at least $ 3 million, and the value of the shares – 19 million.
The level of a company represented on the exchange corresponds to the greatness of the NYSE Here you can become a shareholder of Apple, Coca-Cola, ExxonMobil, Nike, Visa and other global corporations.
The stock indexes of the New York Stock Exchange are as follows:
1. Dow Jones Index (DJIA)
Shows how the industrial component of America’s stock markets is developing.
2. NYSE ARCA Tech 100 Index
Shows changes in the value of securities of companies operating in innovative areas.
3. NYSE Composite
Universal index taking into account the value of all shares listed on the stock exchange.