The New York Stock Exchange is one of the oldest in the world. History of the New York Stock Exchange

New York is one of the twenty most influential and large cities in the world. The degree of development of this metropolis can be judged by the level of life, population density, and also by the huge influence on the financial markets of the whole world. New York is the oldest and largest financial center of the North American currency market. It houses the world's largest and most important US stock exchange NYSE, which is considered to be a symbol of the financial power of the United States of America.

Background of the NYSE

Until the end of the XVIII century, the profession of the broker as such did not exist. People at that time were interested in commodity transactions more than securities. The operations of purchase and sale were made in the hotels and coffee shops along Wall Street. Speculation in securities (CB) has become a leading activity of brokers only after in 1790 on the market were issued bonds, guaranteed by the US government. People interested in the goods, and brokers for the sale of securities began to share their activities. Most often, transactions on securities occurred under the plane tree, growing on Wall Street, near the house number 68. Auctioneers and dealers sought to monopolize all transactions on securities sales, scaled commission, as a result of which all operations of buying and selling bonds and shares guaranteed by the state, became unprofitable.

Getting Started NYSE

The first attempt to change the state of things was a meeting of leading brokers in the lobby of the Corre's hotel. In the end, on May 17, 1792, the most respected brokers signed the famous "Agreement under the plane tree". The text of the agreement was short, the goals were transparent. In the initial trading deals were conducted on three types of government securities and on shares of two banks. Brokers were allowed to sell securities only to each other, and the commission fee was fixed at 0.25% of the transaction value. This agreement also became a testament to the birth of the New York Stock Exchange.

Building NYSE

At the beginning of their work, brokers rented a room for two hundred dollars. This is the first room that was occupied by the New York Stock Exchange. The address of this financial institution was listed as Wall Street, 40. In the 19th century the exchange burned several times, changing its address. For two centuries, its profit increased so much that in 1903 the administration was able to design and build the building of the exchange. The architect was George Post. Originally, the NYSE was a house that looked like a Greek temple, with an ornate pediment and six columns on the facade. The total amount of work was $ 4 million. Later, 22 more floors were added, where new trading platforms for the financial mechanism that New York is proud of were located. The stock exchange, whose address Wall Street 11, is known to any American and visitor of the city. The room served its functions until 1978. After that, the New York Stock Exchange NYSE moved to other addresses, and the building itself became the national treasure of the United States.

The history of the appearance of the national flag on the main pediment of the hull of the exchange is interesting. Because of the beginning of the great depression, many ruined owners of shares committed suicide, throwing themselves out of the windows of the building. After that, the administration installed iron bars on the windows. To a solid financial institution was not like a prison, it was decided to close these bars with the national flag of the United States.

The NYSE is currently closed to visitors, but New York guests are happy to take pictures of the old building at the intersection of Broad Street and Wall Street, which housed the New York Stock Exchange. Photo of this house is known to tourists from all over the world.

NYSE in the twentieth century

During its existence, the New York Stock Exchange has experienced many ups and downs. Several times the auction was suspended, for example, in October 1929 due to the beginning of the Great Depression in October 1987, when the Dow Jones index experienced the deepest fall. The October 2012 was also unsuccessful, when the exchange stopped its work due to the approach of Hurricane Sandy. Currently, its activities are regulated and controlled by a special body - the State Commission on Securities and Exchange. It was the Stock Exchange of New York that developed and implemented the Dow Jones index, which is the most important parameter of the CBR quotation.

NYSE today

Since 1975, the New York Stock Exchange has received the status of a non-profit organization, with assets of 1366 private persons. Places on the stock exchange could be sold and bought. To date, the cost of a member of this corporation is about $ 3 million. The youngest broker in the history of the exchange is the thirty-year-old William J. O'Neill. It was he who created the daily database of the US Central Bank. This happened in the 60 years of the twentieth century.

The New York Stock Exchange differs from other exchanges in that it is very picky about companies that represent their securities for transactions. These firms must meet the conditions of the listing. These conditions are among the most severe among other stock exchanges in the world. Companies that passed the listing are considered the most reliable. Currently, NYSE listing conditions are met by 2,800 world-class companies, and only 450 of them are not registered in the US. On the slang of brokers such firms are called "blue chips".

How does the NYSE work?

A well-established financial mechanism, which nonetheless determines the value of various companies in any part of the world, is what the New York Stock Exchange is today. The office is open from 9:30 to 16:00 (New York). The work of the exchange is conducted by specialized Specialists specialists. Employees of the NYSE are responsible for the order of trading on the exchange and support for liquidity. A specialist serves as an intermediary in transactions between buyers and sellers, launches sales processes. In the event of a disruption in the balance between supply and demand, a specialist has the right to use the firm's money to keep the value of the Central Bank. In addition, the experts of the exchange conduct an open book - a tape of quotes of various securities in real time, execute orders and orders of owners and buyers of securities.

In addition to specialists, such brokers participate in the work of the exchange:

- persons representing companies from the Listed companies list;

- persons representing mutual and pension non-state funds Institutional investors;

- persons who individually invest in securities;

- independent brokers (Independent Brokers), who issue orders to their clients;

- persons representing brokerage houses and leading trades on behalf of some broker companies NYSE Member Brokerage firms;

- floor brokers Floor Brokers. These are specialists who conduct trades in the shares entrusted to them. Currently, there are twenty posts on the floor of the stock exchange, in each of which there are up to thirty sectors. One broker leads about thirty shares. As a rule, a broker on the floor is an expert who has extensive experience in the stock exchange.

The current activity of the stock exchange NYSE is international. The success of the NYSE depends on the economies of many countries, including such large countries as China and Russia. The competitiveness of any country, its role in the global world processes directly depends on the success and profitability of the leading companies in this country. And the activities of the NYSE, like other world stock exchanges, are aimed specifically at the development of the global economy as a whole, without separating companies and shares by continents and states.