New York Stock Exchange Flashcards, test questions and answers

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What is New York Stock Exchange?

New York Stock Exchange (NYSE) is the largest stock exchange in the world, and it has been the cornerstone of global finance for centuries. Founded in 1792, it is located on Wall Street in Lower Manhattan. It was originally created as a meeting place for brokers to buy and sell stocks and bonds, but it has since evolved into a major hub for investors from all over the world. The NYSE trades an average of more than $2 billion worth of securities each day and its listings include some of the most well-known companies in America such as Apple, Microsoft, Goldman Sachs and JPMorgan Chase.The NYSE operates on an auction system where buyers and sellers come together to negotiate prices through a trading floor or electronically over computers using their brokerages’ trading platform. During this process, buyers submit bids which set a maximum purchase price they are willing to pay while sellers submit offers which set a minimum sale price they will accept. Once these bids or offers meet at an agreed upon price point, a sale or purchase is made. The NYSE also provides indices such as the Dow Jones Industrial Average (DJIA) which tracks 30 large publicly traded companies based on market capitalizationthe total value of their shares outstandingand other methods to track different sectors of the economy like energy companies or technology firms. In addition to providing investors with access to stocks and bonds that are traded on its platform, the NYSE also offers various services such as providing liquidityensuring orders can be executed quickly even when there may be limited interest from buyers or sellersas well as investor education programs designed to help individuals understand how markets work so that they can make more informed decisions about where to invest their money. The New York Stock Exchange has been at the center of global finance for centuries now, and its importance continues today with millions of investors participating each day from around the world looking to increase their wealth through successful investing strategies.