The New York Stock Exchange (also known as: NYSE), is the world’s largest securities exchange. They sell 9.3 million stocks and other securities a day. All of their stock transactions are auctioned.
The NYSE uses two methods of trading: brokers and all-electronic. The brokers will set the “bid" price and the buyer buys it. When your stockbroker executes your order to sell, it is not completed until one of the dealers on the floor of the NYSE finds another broker that wants to buy the stock. When you buy stock on a computer, the computer acts as the dealer. All brokers and dealers must get approval from the NYSE and have a trading license.
At the NYSE, the opening bell rings at 9:30 AM Eastern Time, and the closing bell rings at 4:00 PM Eastern Time. The tradition of ringing a bell began in 1870 with a Chinese gong. But in 1903, the NYSE switched to brass bells. It is now considered a honor to be invited to ring the bell.
The NYSE closes on:
The NYSE closes at 1:00 PM Eastern Time on:
The NYSE officially began on May 17th, 1792, under a buttonwood tree on 68 Wall Street. The first stock sold under the buttonwood tree was from the Bank of New York. The NYSE was originally named the New York Stock & Exchange Board.
The NASDAQ is meant for tech companies, but also trades banking companies, airline companies, Starbucks, and shoe companies . The NASDAQ is the first electronic exchange and about 3,000 companies are traded there.
In 1971, the National Association of Securities Dealers set out to create the world’s first electronic stock market. On February 7th, 1971, the NASDAQ opened, but could not execute trades. Instead it provided automated quotations.
The NASDAQ lists more than 3,700 companies and boasts the highest trade volume in the US market. Also, more than $10,00,000,000,000 worth of companies are traded on the the NASDAQ.
The NASDAQ opens at 9:00 AM Eastern Time, and closes at 4:30 PM Eastern Time. But unlike any other stock market, the NASDAQ offer’s “pre-market" and “post-market" hours. The “pre-market" hours are from 4:00 AM to 9:30 AM Eastern Time. The “post-market" hours are from 4:30 PM to 8:00 PM Eastern Time.
The S&P 500 tracks 500 large U.S. companies and represents roughly 70% of all the stocks that are publicly traded. Over the past 10 years, the S&P 500 has returned 9.49% per year, but in 2017, it returned 21.83%.
The S&P 500 tracks the market capitalization of the companies in tis index. The total market capitalization of the S&P 500 is $23,500,000,000,000. The S&P 500 includes real estate investment trusts and business development companies.
The S&P 500 balances the index quarterly in March, June, September, and December. To qualify for the S&P 500 a company must be in the US, have a market capitalization of at least $6,100,000,000, at least 50% of the companies stock must be available to the public, price must be at least $1 per share, must file a 10-K annual report, have at least 50% of its fixed assets and revenues must be in the US, and the stock must be listed on the NYSE, Investors Exchange, NASDAQ, or BATS.
There are only 2 ways the S&P 500 is different from the Dow Jones and the NASDAQ. The S&P 500:
The Dow Jones is named after Charles Dow, and is the leading indicator of market health. The Dow Jones tracks the 30 largest Us companies.
The Dow Jones is calculated by adding up the stock prices of all companies in each index and dividing it by the number of companies. Also, the Dow Jones averages don’t take into account the number of shares outstanding.
The Dow Jones was created by Charles Dow (the founder of the Wall Street Journal) and a statistician named Edward Jones. On February 16, 1885, the Dow Jones began publishing a list of 12 stocks, there were:
Here's what the companies were and what happened to them:
By 1889, the Dow Jones expanded to 8 more industrial companies.
The Dow Jones Industrial Average has expanded and now list's 30 companies.
The Russell 2000 focuses on small companies. This index follows 2,000 of the smallest companies in the stock market. The Russell 2000 has a sister index called the Russell 3000, and is made up of the bottom two-thirds of the Russell 300 index.
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