The New York Stock Exchange in 2012.

Type Stock exchange ` Location New York City, New York, U.S.
Founded March 8, 1817, Wall Street, New York City Owner Intercontinental Exchange(Owner)
Key people Jeffrey Sprecher(Chairman) Currency United States Dollar
No. of listings 2,400 Market cap US$19.3 trillion[3]
Volume US$20.161 trillion (2011) Indices Dow Jones Industrial Average
,S&P 500, NYSE Composite

Profile of NYSE
Location: - New York city U.S.
Founded: - March 8, l8l7.
Owner :- NYSE Euronext
CEO :- Duncan L. Niederauer
Currency :- US $
No. of Listing Co. :- 2800 aprox.-
Market Capital :- US$ |3.39 Trillion ( Dec 20l0)
Website :- www.nyse.com

Whats the stock market?

A stock market is a public entity for the trading of company stock (shares) and derivatives at an agreed price;
these are securities listed on a stock exchange as well as those only traded privately.

Origin of Stock Market

Back to over 200year ago US. decided to finance the war by selling the bonds, and government notes
promising to payout at profit at a later date. At the same time pvt. Bank began to raise money by issuing stock
or shares of the company to raise their own money.

History of NYSE
NYSE started in I792.
In start only ve securities traded.
ln IS I 7, the rules 8: regulations was developed.
Anthony Stockholm was elected the rst president of exchange.
First set trading hours were estd in |873.
Dow Jones industrial average with a starting value of 90.
Crashes over the years effect on the NYSE.

A Brief Timeline of Important Events in the History of the NYSE

I792 - Twenty-four brokers and merchants gathered on Wall Street to sign the Buttonwood Agreement.
The NYSE is born!
I792 - Bank of New York becomes the rst listed company on the NYSE.
I903 - April 22, the NYSE moved into l8 Broad Street.(This building is still in use today.)
|9|8 - The pneumatic vacuum tube system is made for sending tickets to and from different departments.
I929 - October 23: Black Thursday. October 26: Blue Monday (Market loses $26 billion in value.
I953 - October |0: Trade volume on the NYSE reaches 900,000 shares, this marks the last day that the
daily
volume of the NYSE is under | million shares.
I967 - NYSE admits its rst woman member.
I987 - October l9: Black Monday (Market drops 508 points, the largest one-day drop in history.)
I992 - May l7: the NYSE celebrates its 200th anniversary.
I996 - May 7: The highest price ever paid for membership is $ | ,450,000

Major Companies
|.ExxoMobi| Corp(XOM) " 6. WaI-Mart Market Cap: $329B Stores(M)
.. 2_ PetroChina () Market Cap:$203B Market Cap: $2373 " 7.China Mobile ()
3. BHP Billiton() Market CaP=$|9|B Market Cap:$222B '* 8. Royal Dutch Shell
" 4.Petrobras () Mam) Market Cap:$2IOB Market Cap: $I9OB
 .. 5.HSBC Holdings () "' 9- BHP Billiton PIC () Market Cap:$206B Market C3P3$ I 873
" |0. BP Plc (E) Market Cap: $|86B

Crashes and Effects on the Market

In Oct 24. I929 was known as a Black Thursday stock prices fell sharply by a volume of about l3 million
shares. Five days later, October 29th, I929, the market crashed by a volume of over I6 million shares. At the
time this was the highest volume drop that was not to be matched for 39 years. This crash marked the
beginning of the Great Depression

Reason behind the crash:-

Stocks were overpriced.
Federal Reserve policies were causing disagreement and problems.
Many people had an overconfidence from the 20's which influenced a search for easy money and made
many people greedy.
Many people took their chances in the market by "buying on a margin". This means that they bought
stocks on borrowed money, money they did not have. They would be making money as long as their
stock price increased, but if the prices fell then they would be deep in debt.
In Oct I9, I987 was known as Black Monday" because the NYSE dropped 508 points, the largest one-
day fall in history. From October l4 to October I9th of I987 the major parts of the market dropped around
30% or more.

Some explanations for the causes of the crash:

Computer trading securities-many analysts say this is the cause. Computers in large investing
companies were programmed to order large numbers of stocks when certain market trends prevailed.
Liquidity- trading mechanisms in the stock market were unable to deal with such a large ow of sell
orders.
Trade and Budget decits-trade and budget debts during the third quarter of I987 might have led
investors into thinking that these debts would cause the crash.

Mergers
Euronext and NYSE Group:-
NYSE Group bid 8 billion in cash and shares for Euronext on May 22, 2006.
The new firm, tentatively dubbed NYSE Euronext, would be headquartered in New York City.
NYSE CEO John Thain, who would head NYSE Euronext.
NYSE Euronext and Deutsche Boise:-
The new company becoming the world's largest stock exchange operator with a market capitalisation of
listed companies equal to US$I 5 trillion.
President and deputy CEO of NYSE Euronext Dominique Cerutti would become the new company's
president.
Deutsche Borse shareholders will have 60% ownership of the new entity, and NYSE-Euronext
shareholders will have 40%.