New York Stock Exchange (NYSE)

Definition

The New York Stock Exchange (NYSE) is the largest and one of the oldest stock exchanges in the world, located in New York City. It facilitates the buying and selling of publicly traded stocks and other securities.

5 Must Know Facts For Your Next Test

1. The NYSE was founded in 1792 with the signing of the Buttonwood Agreement.
2. It operates as an auction market where buyers and sellers conduct transactions through designated market makers.
3. The NYSE lists many blue-chip companies, including some of the most valuable firms globally like Apple and Microsoft.
4. In 2007, NYSE merged with Euronext to form NYSE Euronext, expanding its global reach.
5. The NYSE is regulated by the Securities and Exchange Commission (SEC) to ensure fair trading practices.

Review Questions

• When was the New York Stock Exchange founded?
• What type of market structure does the NYSE use for trading?
• Name two major companies listed on the NYSE.

Related terms

NASDAQ:

The second-largest stock exchange in the world known for its electronic trading platform.

Dow Jones Industrial Average (DJIA):

A stock market index that measures the stock performance of thirty large companies listed on stock exchanges in the United States.

Securities and Exchange Commission (SEC):

The U.S. government agency responsible for regulating securities markets to protect investors and maintain fair functioning.