Characteristics Of The New York Stock Exchange

Decent Essays
New York Stock Exchange or NYSE located in New York is the biggest stock exchange in the world (The NYSE And Nasdaq: How They Work, 2016). Together with NASDAQ, NYSE is the first thing that comes to mind when thinking about stock market. NYSE however, apart from being the leading stock exchange in the world, has also some unique characteristics. NYSE is an auction market and many exchanges are done on the physical trading floor with “open outcry” interaction (The NYSE And Nasdaq: How They Work, 2016). Because NYSE sets very high standards for companies to be listed based on their market capitalization, historically investors perceive NYSE as the stock exchange that lists blue chips corporations, larger-cap companies, while Nasdaq hosts smaller-cap firms and oriented to more high tech companies (The NYSE And Nasdaq: How They Work, 2016). NYSE website offers 4 main products that will be discussed in this paper: equities, options, exchange-traded products and bonds. …show more content…
The primary market is where large- and medium- cap companies shares are traded. The primary markets include the largest companies and corporations that must meet the highest standards. Primary equities market are managed by designated market makers that provides unique human insight , which, as the website suggests, considerable increases liquidity, accountability making NYSE the largest equity exchange in the world. Small-cap companies, mainly high tech, are trading their equities via NYSE MKT, which is the second NYSE equity market. NYSE Arca is the third equities trading market where unlike primary market equities are traded solely across electronic exchange

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