New York Stock Exchange (NYSE)

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New York Stock Exchange (NYSE)

Overview

The New York Stock Exchange (NYSE), located on Wall Street in New York City, is the world’s largest stock exchange by total market capitalization of listed companies. Founded in 1792, it has evolved from an open-outcry trading floor to a modern marketplace that combines an iconic physical trading floor with extensive electronic trading systems. The exchange lists leading U.S. and international companies and remains a central hub of global finance.

Key facts

  • Founded: 1792 (Buttonwood Agreement)
  • Trading hours: Monday–Friday, 9:30 a.m. to 4:00 p.m. ET
  • Largest global exchange by market capitalization (estimated $24.6 trillion of listed companies as of mid-2022)
  • Parent company: Intercontinental Exchange (ICE) — acquired in 2013
  • Historic headquarters: 18 Broad St. and 11 Wall St. (designated landmarks)

How the NYSE operates

  • Trading model: A hybrid of physical floor trading and electronic systems. Designated market makers (DMMs) manage auctions and provide liquidity alongside automated trading.
  • Listings: U.S. and qualified foreign companies can list on the NYSE if they meet listing standards.
  • Market structure: The exchange historically relied on open outcry but now routes most trades electronically while maintaining a trading floor for human oversight and certain auction functions.
  • Holidays: The NYSE is closed on major U.S. holidays; when a holiday falls on a weekend, an adjacent weekday closure may occur.

Opening and closing bells

  • The opening bell at 9:30 a.m. ET and the closing bell at 4:00 p.m. ET mark the start and end of the trading day.
  • The bell became the official signal in 1903 (earlier signals included a gavel and a gong).
  • Since the mid-1990s, companies, public figures, and organizations are often invited to ring the bell as part of listings, product launches, or public events.

History and milestones

  • Origins: The Buttonwood Agreement (May 17, 1792) among 24 brokers launched organized securities trading in New York.
  • Early listings: The exchange began trading a handful of securities, including government bonds and bank stocks. Some of America’s oldest publicly traded firms trace their listings back to the NYSE.
  • Volume growth: The exchange reached one million shares traded in a single day in 1888; by 2022, normal trading days often saw billions of shares traded.
  • Corporate changes: The NYSE merged with and acquired various exchanges over time. It became a public company in 2006 and was acquired by ICE in 2013.

Landmark events (selected)

  • 1929 — Stock market crash that triggered the Great Depression.
  • 1934 — Registered as a national securities exchange with the SEC.
  • 1987 — Black Monday: DJIA fell about 22.6% in a single day.
  • 2001 — Trading closed for several days after the 9/11 attacks; substantial market losses followed reopening.
  • 2010 — “Flash Crash” produced a very large intraday market drop and recovery.
  • 2020 — Temporary suspension of floor trading during the early COVID-19 pandemic; markets continued electronically.

Ownership and global position

  • Owner: Intercontinental Exchange (ICE) since 2013.
  • Global standing: The NYSE is the largest exchange by market capitalization of listed companies; other major exchanges include NASDAQ, Shanghai, and Euronext.

Bottom line

The NYSE is a historic and dominant force in global capital markets. From the Buttonwood Agreement to today’s hybrid trading model, it has adapted to technological change while maintaining symbolic features like the trading floor and the opening/closing bells. It continues to host major corporations worldwide and to play a central role in price discovery, liquidity, and the broader financial system.