York Stock Exchange. New York Stock Exchange NYSE. History of the New York Stock Exchange

The New York Stock Exchange is a symbol of American prosperity, economic development and prosperity, as well as the power of the American economic system and the stock market. The NYSE is the largest stock market in the world by capitalization and listing. The average capitalization is $28 trillion, and the listing represents over 4 thousand of the highest profitable companies in the United States of America. In addition, if you count the general list of all Nyse Euronext groups, the listing will amount to more than 7 thousand items, which includes leading corporations not only from America, but also from Canada, Europe and about 55 other countries of the world.

billion $ - average daily trading volume

times in history the stock exchange has been closed

places allow you to trade shares on the stock exchange

The famous phrase “sharks from Wall Street” appeared precisely thanks to the NYSE, since this place is considered the financial center of the world and has allowed more than one hundred of today’s wealthy citizens to get rich. According to statistics, more than one third of all financial transactions in shares are carried out on the NYSE stock exchange. Many countries and their stock markets are directly dependent on the progress of trading on the New York Stock Exchange, actively correlating with the main indicators of the NYSE.

Do you want to make money on shares of super companies such as Google, Apple, MicroSoft, FaceBook? Invest in them with the most reliable stock broker – .

History of the New York Stock Exchange

In May 1792, a meeting of 24 stockbrokers led to the signing of the Buttonwood Agreement, which agreed to establish a regulated stock market in New York. At that time, there was a civil war between the South and North of the United States of America, which forced the Government and the First Bank of the United States to actively issue government treasury papers to replenish the budget. At the first stages, brokers carried out transactions with these securities, and also supplied paramilitary forces with equipment and food through declarative transactions with sellers.

The Buttonwood Agreement or the Sycamore Agreement (Russian translation) provided for only two main conditions for the exchange - participants could only enter into transactions among themselves, and a 0.25% tax was imposed on all transactions concluded. At first, all meetings and transactions were carried out in a coffee shop in the area of ​​the now famous Wall Street. The coffee shop was called Tontine Coffee House and sellers and buyers carried out transactions with shares of the First Bank and government bonds, which were exchanged barter for food products and equipment.

In 1817, the New York Stock Exchange moved from a coffee house to a corner building on Wall Street, and the first constitution of the exchange order was organized and the first name of the establishment was designated the New York Stock & Exchange Board. The exchange received its final name in 1863, New-York Stock Exchange - NYSE.

The Constitution described the basic rules of behavior on the exchange floor, as well as the principles of concluding transactions. In addition, auctioneers, in other words speculators, were allowed onto the exchange, which also increased the popularity and demand of the exchange platform.

The turning point for the reorganized exchange was the advent of the telegraph. In 1840, Samuel Morse patented his invention, which immediately attracted the interest of stockbrokers. Organizers NYSE exchanges They installed telegraphs in the exchange halls, and also established connections with nearby stock exchanges, which significantly speeded up the receipt and sending of quotes. With this move, the NYSE was technically ahead of its major competitors in nearby cities. The number of participants and those wishing to trade on the NYSE stock exchange grew steadily and in 1869 management had to introduce a restriction on traders.

The first ticker for a security was introduced on the stock exchange in 1867, in 1882 a clearing house was organized on the exchange, and in 1896 the calculated index of the industrial sector was first published Dow Jones.

The first economic crisis, which occurred in 1907, resulted in serious losses for the stock exchange, but The most significant event for the NYSE was October 29, 1929. This day in history is designated as “Black Tuesday” and is known for a fairly strong drop in the entire stock market. From the very opening of the exchange on that day (it was the fifth day of the “stock market fever”), everyone began to rapidly sell shares in order to get at least some money, which caused a chain reaction and a rapid drop in the Dow Jones index by 12.5%. Hundreds of companies went bankrupt that day, and the deposits of thousands of shareholders turned to zero. Over the next two decades, the US economy was in a state of stagnation, and only by the 50s was it possible to intensify economic growth and resume full-scale operation of the exchange platform.

In 1934, the NYSE exchange received the status of the US National Securities Exchange, and a securities commission was organized in the states, which regulated the activities of all financial institutions in the country.

The years after World War II marked a new era for the NYSE due to the huge number of international orders and the development of the US economy. In 1967, a new index, the NYSE Composite Index, was introduced into the stock market, which became a new barometer of the American economy.

In the mid-1980s, a position on the stock exchange was worth $1.15 million, which reflected the company's active growth and prospects for further development. However, the next financial crisis again made its adjustments. September 19, 1987 became another fatal day for the economy and was called “Black Monday.” On this day, the Dow Jones index fell by a record 22%, after which the organizers of the exchange introduced restrictive measures that provided for an emergency stop in trading if the index fell by more than 10 percent.

The “switch” was triggered in the wake of a new crisis in 1997, which was triggered by the fall of Asian markets.

September 11, 2001, after the worst death in US history terrorist attack, the NYSE stock exchange was closed for 4 days.

On March 7, 2006, the New York Stock Exchange formalized a merger with Archipelago Holdings, which owned the ArcaEx electronic exchange. From that moment on, the NYSE became a holding company and issued its shares for free circulation, thereby declaring itself a commercial organization. In the summer of the same year, negotiations began on the takeover of the European exchange Euronext, which officially took place in April 2007. Since then, NYSE Euronext has become the world's largest stock market. Also in 2007, the NYSE announced a merger with another major US exchange, the American Stock Exchange.

In 2010, there was another super-fall in the Dow Jones index. Literally from the opening, quotes fell by 998 points. Historians called this event FlashCrash and explained it as a system failure, since the SEC was unable to determine the cause of such a collapse. By the way, the index quotes fell within a few minutes after opening and recovered almost as quickly.

In 2011, the US government banned the merger of NYSE Euronext with the futures platform American Futures Exchange and Nasdaq OMX, and in 2012 it received the same refusal to merge with the German Deutche Borse AG. Such measures were taken because such mergers would lead to the NYSE becoming an absolute global monopolist in the stock and derivatives markets.

Modern New York Stock Exchange

Trading on the NICE stock exchange is carried out in a continuous format from 9-30 to 16-00 New York time, which corresponds to 16-30/17-30 to 23-00/00-00 Moscow time, depending on summer/winter time.

The main building of the exchange is located at 11 Wall Street in New York City. In addition, the Nyse Euronext holding owns representative offices in 55 countries, as well as its own clearing organizations, depositories, bank branches, electronic platforms and other structural elements. Collectively, NYSE Euronext represents a global international organization, which has more than 6,000 listed companies and a combined market capitalization of more than $28 trillion.

The NYSE stock market features just over 2,800 tickers exclusively for shares of American companies, among which the largest holdings stand out: American Express Co, Walt Disney, Wal-Mart, Coca-Cola, Caterpillar, Exxon Mobil, General Electric, Microsoft, Nike, Intel, JPMorgan , Chevron, Cisco, Berkshire Hathaway and others.

The main NYSE indices are the Dow Jones, Nyse Composite and Nyse Arca Tech 100 Index.

Dow Jones Industrial Average Despite its name, it has long been no longer an index of exclusively the industrial sector. It is composed of 30 largest US companies different sectors economy.

NYSE Composite stood on current moment the most popular index on the stock exchange and serves as an indicator of the state of the state economy, since it includes stock quotes of all companies traded on the NYSE.

NYSE ARCA Tech Index- despite the fact that it is calculated by the NYSE exchange, it includes shares of companies that are traded on other exchanges. As a rule, this index includes fast-growing innovative companies from the high-tech, biomedical, telecommunications, aerospace sectors, etc.

Listing on the NYSE primary market is accompanied by fairly high requirements for companies, so listing on the NYSE is considered an image indicator for many corporations. Current trading is mainly conducted in electronic form, however, on the exchange floor there are also specialists, traders and brokers who carry out transactions using the traditional voice method.

New York Stock Exchange (NYSE) is deservedly considered one of the important symbols of the impressive capabilities of the United States as a separate state and power financial sector the entire world economy.

Largely because of the New York Stock Exchange, many expressions associated with Wall Street have come into use, the street recognized as the historical value of the financial center of the city on which the stock exchange is located.

Contents of the article:

NYSE is the largest stock exchange in the world in terms of most indicators, including the most important ones - the turnover of trades taking place on it and the capitalization of the companies represented. Today, almost two-thirds of transactions related to the stock market take place on the New York Stock Exchange.

NYSE (New York Stock Exchange)

NYSE is the New York stock exchange (USA), is the largest trading platform in the world, founded in 1868. It accounts for approximately 60% of all stock transactions in the world.

The listing includes shares of more than 4 thousand companies. The total capitalization of these enterprises significantly exceeds $28 trillion., which seriously exceeds that of any other stock exchange. The NYSE defines one of the world's most famous indices - the Dow Jones ( Dow Jones Index, DJ30).

• The New York Stock Exchange office is located at: USA, New York, Lower Manhattan, Wall Street, 11.
• Official website New York Stock Exchange NYSE: https://www.nyse.com/.

New York Stock Exchange opening hours

The New York Stock Exchange is open weekdays from 9:30 to 16:00 Eastern Standard Time (EST) in New York, or from 16:30 to 23:00 Moscow time.

In addition to two days off a week, the exchange also does not open on nine holidays a year, of which all interested parties are informed in advance.

For a long time, the signal about the beginning or end of trading was the sound of a hammer. Then it was replaced by the sound of a gong. After moving to a new building in 1903, a special bell is used as a gong, which rings at 9.30 and 16.00. The right to press the button that sets the striking mechanism of the bell in motion is often granted to famous people or even fictional characters ( Mickey Mouse, Pink Panther, etc.).

UN secretaries general opened or closed the NYSE at different times Ban Ki-moon (Ban Ki-moon) And Kofi Annan (Kofi Annan), greatest modern Olympian swimmer Michael Phelps (Michael Phelps), popular musicians group KISS And Snoop Dogg (Snoop Dogg), politicians Nelson Mandela (Nelson Mandela) and mayor of New York Rudolph Giuliani (Rudolph Giuliani).

NYSE Owners

Owner of NYSE since 2013 ICE (Intercontinental Exchange) is an international network of stock and commodity exchanges operating in the USA, Europe and Canada.

The New York Stock Exchange is governed by a Board of Directors. It has 27 members, including a chairman, executive vice chairman and president. The remaining 24 seats on the Board are divided equally between 12 public representatives who are not brokers or dealers of the exchange and 12 executives of companies actively engaged in securities transactions. A certain role in the activities of the NYSE is played by international advisory committees involved in developing policies and strategies for the development of the exchange, as well as improving management methods.

The number of individual members of the exchange, equal to 1366, was determined in 1953 and has not changed since then. Since 1975, when the NYSE changed its status to become a non-profit organization, members of the exchange have become its sole owners. However, in 2006, the exchange itself entered the market by putting shares up for sale, thus redistributing ownership of property.

Exchange members include brokers, specialists and registered traders. A member's seat may be leased or sold. Moreover, the cost of one reaches up to 3 million dollars. About a third of all places are rented.

History of the New York Stock Exchange

Interior of the New York Stock Exchange. 1893

Over the more than two-century history of the New York Stock Exchange, many events have occurred that are in one way or another connected with the New York Stock Exchange.

Chronology

Today the New York Stock Exchange deservedly ranks among the largest financial institutions world, leading with a serious gap from competing structures both in capitalization and turnover of trades.

This was made possible, among other things, by several major mergers in recent years. It should be noted that the global trend toward the consolidation of exchanges began to take shape in 2000.

Important mergers and acquisitions in recent years

The beginning of the process that led to the NYSE's leading position in the stock market was the merger of the exchange with electronic platform ArcaEX (Archipelago Holdings), which happened in 2006. It was after this that shares of the company itself were put up for auction NYSE Group, which replaced the previously existing places on the exchange. Another important consequence of the merger was that from that time on the exchange used the so-called integrated sales system, combining both the traditional “ voice» option, and electronic trading using the system Archipelago.

The next notable merger was the merger in 2007 of the NYSE Group with the European exchange Euronext, uniting the largest trading floors in London, Paris, Amsterdam, Lisbon and Brussels. As a result, it is created NYSE Euronext, which has become the undoubted market leader.

• This is quite obvious, given that even before the merger, the NYSE and Euronext were respectively the 1st and 4th largest stock exchanges in the world in terms of sales.

Charging Bull - bronze statue on Wall Street.

NYSE Euronext could have taken an even more serious position in 2012, when they submitted an application to buy the Frankfurt stock exchange Deutsche Borse AG, however, the European Commission blocked the merger of the group of companies. If this transaction is successfully completed, a de facto monopolist could emerge in the market. This is precisely what served as the reason for the EU regulatory authorities to block the unification. It is important to note that this was far from single deal, which was banned in Europe and the USA during these years.

A logical consequence of the cessation of further consolidation was that already in 2013, NYSE Euronext itself became the target of a takeover, having been purchased by an international network of trading and stock exchanges ICE. As a result, the NYSE and Euronext were separated again and began to operate as separate units, which undoubtedly increased competition in the market. However, this did not prevent the NYSE from remaining in first position in the ranking of stock exchanges both in terms of sales volume and capitalization.

NYSE functions

The New York Stock Exchange is undoubtedly complex organizational structure successfully performing many functions. These include:

• provision and preparation of premises for transactions on the stock market;
• providing working conditions for all members and participants of the exchange;
• development and implementation of fair and honest trade principles;
• performance of direct functions and responsibilities of the chamber of commerce and stock exchange;
• control over legal literacy and compliance with commercial honor when making stock exchange transactions.

In more scientific terms, the NYSE is an important market instrument that ensures the accumulation and redistribution of temporarily free financial resources.

An important and one of the most important differences of the New York Stock Exchange is its serious trading tools, which is ensured by brokers having more than 8 thousand shares at their disposal. At the same time, the transparency of transactions is guaranteed, which is achieved by the ability to track the actions of traders online using specially developed applications.

Dow Jones Index

Index Dow Jones) is the oldest and most widely known NYSE index, which introduced Henry Charles Dow, founder of the Wall Street Joural in 1884.

Initially based on the index Dow Jones Transportation Average there were shares of 11 largest industrial and railway companies in the United States. As the focus of America's most important businesses shifted to industry, the index changed its name to Dow Jones Industrial Average and included 12 companies.

Gradually, the number of enterprises included in the calculation formula grew and today it constitutes the 30 most important and significant companies in the United States.

The Dow Jones index almost always acts as the main litmus test when analyzing any major changes in the stock market, especially in cases where we are talking about collapses or growth in business activity.

NYSE Composite Index

A more complex formula for calculating this index includes the value of approximately 2 thousand US and foreign companies, the total capitalization of which significantly exceeds 20 trillion. dollars.

As a result, the NYSE Composite Index provides more accurate and detailed information about the state of the stock market than the Dow Jones Index.

Share listing on NYSE

Listing refers to the process of including shares in quotation lists. To date, this procedure has been completed on the New York Stock Exchange approximately 4.1 thousand companies, the vast majority of which - more than 3.5 thousand - are American.

The list of stocks on the NYSE includes almost all major US companies, with the exception of a few high-tech companies that prefer to cooperate with the second largest American stock exchange, NASDAQ.

Today, NASDAQ is the only serious competitor to the NYSE in the United States.

The first large company from Russia to be listed on the NYSE was in 1996 " VimpelCom" Later, over the years, shares were listed on the New York stock exchange MTS, Mechel, Wimm-Bill-Dann and others.

To undergo the listing procedure and subsequent trading of shares on the NYSE, quite serious conditions must be met. For example, have a profit over the last two years of $3 million. in combination with income for the previous year of at least $2,7 million. In this case, the value of the assets owned by the applicant must be equal to or exceed $18 million.

The list of mandatory requirements is far from exhausted by the numbers listed. Despite this, the number of people wishing to be listed on the NYSE is not getting smaller. The reason for this is simple and logical - listing on the New York Stock Exchange opens up a simple and quick access to serious financial resources.

Everyone has a chance to become the Wolf of Wall Street. And it's not just about the money: the New York Stock Exchange is open to investors and traders from all over the world. Russia is no exception. Of course, trade on NYSE (New York Stock Exchange) ) is possible only through a broker, but you can choose financial instruments and decide what to do with them yourself.

New York Stock Exchange opening hours

Unlike a completely electronic exchange NASDAQ, NYSE has postal address and trading is monitored by real people - specialists, brokers, registered traders. The exchange is open on weekdays - Monday through Friday - and operates from 9:30 to 16:00 New York time. The difference with Moscow is 7 hours. This means that for a resident of the Russian capital, trading begins at 16:30 and ends at 23:00.

The opening hours of the New York Stock Exchange are convenient for traders: they do not need to sit up at night and monitor the news. You can do this during the day, before trading opens. Or combine it with trading on the Moscow Exchange. It will also be convenient for investors with limited work schedules: they can come home in the evening, follow the movement of quotes and buy shares at the best possible price.

What is traded on the New York Stock Exchange?

In fact - all existing securities. They come here largest corporations peace. But, unlike NASDAQ , originally specializing in IT, NYSE focused on industry. However, now not only manufacturers are represented here. And not only American companies: Russian issuers also entered Wall Street - (in the form of American depositary receipts), Wimm-Bill-Dann, Mechel.

Of the 2,800 companies listed on the New York Stock Exchange, most are startups and blue chips. A startup can generate huge profits, but it is a risky investment. Blue chips are issued by large, stable companies - from, to .

New York Stock Exchange indices

“The Dow Jones Industrial Average fell,” when you see this headline on your news feed, you may be in a hurry to sell shares traded on the New York Stock Exchange. And that would be a mistake. Indexes Not reflect the state of the exchanges themselves. This is a tool with which you can analyze the quotes of certain groups of securities.

The most famous indices in NYSE:

· Dow Jones (stock quotes of the 30 largest American companies);

· NYSE ARCA Tech 100 Index (stock quotes of innovative American companies);

· NYSE Composite (quotes of all securities traded on the exchange).

How to start trading on the New York Stock Exchange?

The New York Stock Exchange website (nyse.com) will allow you to track stock quotes and indices and help you understand the basics of trading, but will not provide access to the trading instruments themselves. You will have to find a broker.

There is no “entry” threshold to the market, although many people talk about several thousand and tens of thousands of dollars. This is wrong. The size of your capital can be 5-10 thousand rubles - the limit is determined only by the broker.

To list on the NYSE , you just need to select shares traded on the stock exchange, enter into an agreement with a broker and deposit money. You can manage your securities the way you want.

New York Stock Exchange (NYSE) is one of the main exchanges in the United States and the largest in the world in terms of the number of circulating assets. The stock exchange is located at the following address: 11 Wall St, New York, NY 10005, contact phone: +1 212-656-3000.

In terms of the total number of listed companies, it ranks second in the world. This exchange is perhaps the main symbol of the financial power of the United States, having total influence on the entire global financial market.

For a long time, there were five large halls where trading in shares was carried out. However, at the moment, only 4 of them continue to operate. The fifth location, located at 30 Broad Street, closed in February 2007.

In 1978, the main exchange building at 18 Broad Street between Wall Street and Exchange Place was designated a National Historic Landmark. The main building at 11 Wall St, New York has the same status.

The exchange operates from Monday to Friday, from 9:30 to 16:00 New York time, respectively. In some holidays the trading session is completely stopped.

The NYSE defines various indices, among which the most famous are the Dow Jones Industrial Average, NYSE Composite and NYSE ARCA Tech 100 Index. Of all these indices, the Dow Jones is the oldest, reflecting the state of development of the industrial part financial markets USA.

The New York Stock Exchange was created on May 17, 1792. At that time, it was decided to create and sign a specialized agreement by local brokers (there were about 24 of them), which was called the “Buttonwood Agreement” regarding the founding of the New York Stock Exchange. The very first shares which came into circulation in 1792, became shares financial organization— The Bank of New York.

Some believe that the founding date of the exchange is March 8, 1817, and not 1792. The fact is that it was actually founded in 1792, but in March 1817 the NYSE began its work on a permanent basis, year after year.

History of the New York Stock Exchange (NYSE)

On July 28, 1914, the exchange was closed due to the outbreak of the First World War. Although just a few months after the start of the war she came to help defense industry issued bonds, and in December of the same year, trading in shares resumed. The term listing came into use in 1853 and companies that wanted their shares to be listed on the market had to meet strict requirements.

After difficult times in 1929, all exchange trading was subject to total changes. Soon, the volume of trading and financial investments decreased greatly due to the fact that at that time the New York Stock Exchange crashed.

Investors were no longer so willing to trade and buy new securities, since they could no longer count on solid profits.

This situation continued for more than one year. Only closer to 1950 the situation began to more or less normalize, and investors slowly began to resume their activities on the stock exchange.

Beginning in 1975, it became a non-profit corporation owned by its 1,366 individual members (this number has remained unchanged since 1953). These board members may change, i.e. Members' seats can be sold. However, the price for this place will be considerable, about 4 million US dollars.

In October 1987, the world famous Dow Jones Industrial Average suffered a terrible drop of almost 23% or 510 points, the second largest drop in history. Just 2 years later, in 1989, the Dow Jones index suffered another fall, although this time less (about 7%).

The history of the exchange also includes periodic closures of trading sessions. So, on September 11, 2001, after the terrible terrorist attack in New York, 4 trading sessions were closed at once.

In 2006, it merged with the electronic exchange Archipelago Holdings. The NYSE became a commercial organization. In June of the same year, the exchange announced a merger with another exchange from Europe - Euronext.

The merger itself officially took place on April 4, 2007, when the financial giant NYSE Euronext was born. On May 6, 2010, times got a little tougher for the stock market when the Dow Jones index showed another drop, a very large drop. The index fell by almost 1,000 points, something that has not happened since 1987. Financiers nicknamed this moment “Flash Crash 2010”, since everything happened very quickly. However, the situation soon improved.

The exchange is progressing and developing from year to year. Every year it becomes more and more difficult for companies to get listed on the stock exchange, due to strict listing requirements. Most of the shares that are already trading on the New York Stock Exchange are “blue chips” and shares of companies demonstrating rapid growth rates.

The NYSE values ​​its reputation and therefore takes the selection of securities very seriously in order to provide its clients with only reliable and good stocks for trading.

According to official figures, then at the time of 2013 there were about 3,600 shares of various companies and organizations in circulation. And by early 2007, the market capitalization of all stocks was about $27 trillion. Agree, the numbers are very impressive.

The subjects of trading are specialists and brokers who are able to trade either on behalf of their client or on behalf of the whole company, for which they work. As mentioned above, the exchange is at the disposal of investors from 9:30 to 16:00 local time. The exception is holidays, which are notified in advance. The NYSE Board of Directors consists of the chairman, the president, ten exchange members and ten business representatives.

Advantages and Disadvantages of Trading on the NYSE

The exchange is so huge that it is very difficult to control it, but there are certain commissions that deal with this. All this is very necessary, since many beginners who are not well versed in investment activities are able to misunderstand the principles of work, and therefore only get more harm than good.

Let's look at the positive and negative aspects of the exchange.

The main advantages of the New York Stock Exchange:

1. high level of market capitalization based on the turnover of shares in it
2. excellent level of liquidity, all transactions can be completed in seconds
3. good selection of assets (instruments) for trading activities
4. quick updates of important news and quotes

The disadvantages include the following:

1. high spreads, which makes it a little difficult to make a profit
2. uncontrollable drops or increases in prices, it is difficult to predict how the market will behave at any time
3. large gaps due to the difficulty of position transfer

Date of last update of the material: April, 2019

I decided to move to New York to trade there from the office of one of the members of the New York Stock Exchange. (...)

I wanted to be close to the action.

Edwin Lefebvre, "Remembering a Stock Operator", 1923

Introduction. Main bell of the New York Stock Exchange

Joe DiMaggio - baseball player for the New York Yankees, was voted the "most valuable player" in baseball three times.

Michael Phelps is a swimmer, 18-time Olympic champion and 26-time world champion.

Members of the rock band "Kiss".

New York Mayor Rudy Giuliani.

The first black President of South Africa, Nelson Mandela.

UN Secretary Generals Kofi Annan and Ban Ki-moon.

American military personnel who distinguished themselves in operations outside the United States.

Astronauts and charity workers.

Movie characters - Mickey Mouse, Darth Vader and Pink Panther.

What can unite such a “motley company”?

All of them, over the years, pressed the green button on the control panel that activated the main bell of the New York Stock Exchange. The bell that marks the start (9:30) and end (4:00 EST) of trading on the world's most iconic exchange.

History of the New York Stock Exchange (NYSE)

Buttonwood Agreement, 17.05.1792.

1640s. New Amsterdam (future New York) on the island of Manhattan, is surrounded by a wooden palisade along its northern border. By 1653, the governor of the American New Netherlands, Peter Stuyvesant, by order of the West India Company, strengthened the structure with more powerful fortifications, including a palisade. The height of the wall reaches 12 feet (about 4 m).

In 1685, townspeople built a road along the wall. The street gets the logical name Wall Street, Wall Street, “wall street.” The English colonialists destroy the fence in 1699. The wall disappeared, but Wall Street remained.

At the end of the 18th century, among the few landmarks on Wall Street in Lower Manhattan were a large sycamore tree that grew right in the middle of the street and The Tontine Coffee House across the street.

Respected people gathered under the plane tree and in the coffee shop - street securities traders, brokers. Transactions were made right on the pavement, at a table near a plane tree, or over a cup of coffee. Very convenient and democratic. The contracts were sealed with the signatures of the parties, behind which stood the honest word of the buyer and seller, the most valuable business asset for those who care about their reputation.

Time passed, trading volumes grew, the situation had to be somehow streamlined. And on a warm spring day on May 17, 1792, 24 Wall Street brokers decided to organize themselves and signed, right here, under the sycamore tree, opposite house number 68 on Wall Street, the Buttonwood Agreement (“Agreement under the plane tree”).

1. Brokers (stockbrokers) must enter into transactions only with each other, bypassing auctioneers.
2. Commission rate - 0.25%.

Buttonwood Agreement, 17.05.1792

It is interesting that the business address of one of the signatories, a certain Hugh Smith, who signed the document second, was closest to the table under the plane tree - in the Tontine coffee shop.

The Buttonwood Agreement Association became the first American quasi-exchange, the predecessor of the New York Stock Exchange, New York Stock Exchange (NYSE).

The first securities under the Buttonwood Agreement were shares of The Bank of New York, whose office was located nearby, at number 1 on Wall Street (One Wall Street), shares of First Bank of the United States (see about the bank below), and government debt securities, such as war bonds from the American Revolutionary War.

Brief chronicle of the exchange 1817 - 2013.

March 8, 1817 is the official founding date of the New York Stock Exchange. Its first name is New York Stock and Exchange Board.

Thus, March 8th is a double holiday for stock traders in Manhattan. You can congratulate your colleagues - representatives of the fair sex (if they remember the International women's day) and celebrate another anniversary of the NYSE.

1853 - introduction of listing.

1863 - the exchange receives its modern name - New York Stock Exchange, NYSE.

1866 - the number of brokerage offices (places) reaches 533.

1867 - the concept of "ticker" is introduced.

1889 - The stock market report Customers" Afternoon Letter "grew" into the world famous The Wall Street Journal (WSJ). One of the main daily business publications in the United States has been published since July 8, 1889.

May 26, 1896 - First publication of the Dow Jones Industrial Average, the oldest and one of the main stock indexes of the NYSE.

1903 - The exchange moves to a building at 18 Broad Street with a neo-Romanesque facade decorated with columns. The official current address of the NYSE is 11 Wall St, New York, NY 10005. In 1978, the exchange building complex received the status of a National Historic Landmark.

1914 - from early August to mid-December the stock exchange is closed for 4 months and 2 weeks, due to the outbreak of the First World War. Trading resumes on December 12.

On October 1, 1934, the NYSE was registered as a national stock exchange by the SEC (US Securities and Exchange Commission). The then management of the NYSE was the President and 33 members of the Board.

1943 - women are allowed to trade in the hall.

1953 - the number of places (offices) is fixed at 1366 (until 2005/06).

1967 - Muriel Siebert becomes the first woman to serve on the NYSE Board.

1977 - Foreign brokers begin working on the stock exchange.

September 25, 1995 - NYSE member Michael Einersen traded 1,000 shares of IBM, processing orders submitted electronically. Thus, a line was drawn under the 203-year-old paper document flow on the New York FB.

2001 - the assessment of the value of securities in fractions of 16 ceases, a decimal scale is introduced in increments of $0.01. After al-Qaeda's attack on the Twin Towers, the NYSE did not trade for 4 sessions.

2003 - resumption of calculation of the NYSE Composite, 5000 points are taken as the initial value.

2006 - merger with the electronic exchange Archipelago Holdings and the creation of the commercial organization NYSE Group. The group's shares begin trading on the NYSE itself.

2007 - NYSE Group merges with Europe's Euronext. A new transatlantic exchange, NYSE Euronext, is being formed.

Merger with American Stock Exchange (AMEX). Since 2012 AMEX - NYSE MKT LLC.

2013 - Intercontinental Exchange (ICE) buys NYSE Euronext for $8.2 billion. NYSE begins operating as a division of ICE.

NYSE Indices

Any stock exchange is required to have its own index or indices. The index is the temperature of the trading platform, its pressure and pulse. The New York Stock Exchange has a wide range of such indicators. Below is given brief description three.

Dow Jones Industrial Average

When it comes to crashes or rallies in the stock market, people usually default to events that took place on the NYSE, such as “Black Mondays or Thursdays” or “the longest bull trends.” Of course, unless otherwise stated. The measure of collapse or growth is, as a rule, the Dow Jones index.

The Dow Jones Industrial Average (DJIA) is the oldest and most important NYSE index and one of the world's leading stock indicators. The author of Dow Jones is American financial journalist Charles Henry Dow, co-founder of Dow Jones & Company and founder of The Wall Street Journal (WSJ).

The first versions of the index were based on the stock prices of two industrial and nine US railway companies. The information was for purely internal consumption. The Dow Jones Public Index first appeared in the WSJ on 5/26/1896. The basis for the calculation was the average present value of shares of 12 American corporations. To this day, only General Electric has retained its place in the index. Currently, the DJIA includes stocks of 30 United States companies. The index is determined in points using the scaled average method, which takes into account the consolidation and splitting of securities.

The first Dow Jones value printed was 40.94. On January 12, 1906, the index reached 100. On November 14, 1972, the 1000 mark was overcome. On November 21, 1995, the level of 5000 was passed, and on March 29, 1999 - 10,000. The historical intraday maximum was recorded on May 19, 2015 - 18351.36. In February 2016, the DJIA was trading around 16 thousand points.

the graph is presented on a logarithmic scale

NYSE Composite

The NYSE Composite index has a significantly more fine-tuned tracking of the situation on the NYSE. Its calculation involves about 2,000 shares of American and non-American companies traded on the New York Stock Exchange with a total capitalization of over $20 trillion.

NYSE Composite launched on December 31, 1965. On December 31, 2002, the index calculation was resumed from a value of 5000 points. Historical highs were reached at levels above 11,200 points in May 2015. The current range of index values ​​is 9000-9500.

"Technological" index from the NYSE. Calculated based on quotes from 100 innovative companies operating in the fields of computer manufacturing, semiconductors, medical and telecommunications equipment, aerospace and defense, biotechnology and engineering software. In existence since 1982, it is one of the oldest indices in the technology sector.

Collapses, landslides and falls on NYSE

Since the second half of the 19th century, most of the world's largest stock exchange and financial shocks were necessarily reflected on the New York Stock Exchange or, starting from the last century, originated directly on it.

1792 - the first major recorded financial crisis in the United States.

The reason is unbridled and unlimited lending for land speculation. Risky and scandalous real estate transactions are a strong point American business throughout its history (until the mortgage crisis of 2007/08), which brought a lot of grief to the world's largest economy.

So, back in 1792, a certain entrepreneur A. Macomb took out a loan from the First Bank of the United States. From 1791 to 1811, this institution served as the national (central) bank of the United States. The purpose of the loan is simply “cosmic” - to buy 1/8 of the entire state of New York, as if in bulk, with the subsequent sale of the sliced ​​land plots at retail. What do you think of the idea and scope? Boldly. But the business didn’t take off, that’s what happens.

The result is no loan repayment. In parallel, a number of stock speculators were purchasing bank shares and American debt securities. The goal is very logical (as for speculators) - to inflate the exchange rate. Somehow it didn’t work out...

A series of collapses and defaults led to a depreciation of the American stock market by a quarter in March-April. And in May, under a plane tree, 24 brokers signed the Buttonwood Agreement. It is quite possible that this was their response to the first stock market crash.

1873 - stock exchange panic in Europe: Austria and Germany.

In September, several banks in the United States that provided loans to the railroad went bankrupt. The wave of insolvency spread to other industries that served the railway sector. First of all, for metallurgy.

1893 - stock collapse again railways and banks.

The largest railroad carrier, Philadelphia and Reading, declares bankruptcy. Rush in the silver market. The American depression of the 1890s began, not yet the Great Depression, but already very painful. About 15 thousand enterprises and 500 financial institutions went bankrupt. The unemployment rate at the peak of the crisis was 17-19%.

1907 - "Black October No. 1" on the NYSE.

The main characters are the Heinze brothers with the United Copper Company, banker John P. Morgan and speculator legend Jesse Livermore. At the end of 1907, the Dow fell almost 40% relative to the close of 1906 - the second worst year in the history of the index. Livermore makes his first million by selling short. Then he will write that he will never forget the day of October 24, 1907, when the stock exchange was at its lowest point.

1929 - "Black October No. 2".

Throughout the 1920s, America experienced a powerful bull market in stocks. Everyone, literally everyone, was buying and selling securities, or at least being “in the know.” From shoe shiners and newspaper delivery men to millionaires and politicians. At the end of October 1929, the giant bubble burst. “Dark days” on the NYSE - from October 24 to 29 - marked the beginning of the largest economic crisis in US history, the American tragedy of the twentieth century - the Great Depression. Only the Second World War and the iron “helped” us to finally get out of it. New course"Franklin Delano Roosevelt.

On the New York Stock Exchange on Black Tuesday, October 29, 1929, a full-fledged “end of the world” came for brokers. For some, quite literally. Screams about ruin, crush, fights at the counters. Some speculators prayed right on the trading floor, kneeling down. Others rushed to the nearby Holy Trinity Church.

Attacks of hopelessness and despair in the financial environment have taken the most extreme forms of expression. Up to and including suicide. Gas poisoning, shots to the head, jumping from the upper floors of the hotel to the pavement and from bridges into the Hudson. To avoid a “broker fall,” the NYSE administration installed bars on the windows, covering them for a long time with a huge Stars and Stripes flag.

During the five “black” days of October, the Dow Jones dropped 20%. By 1932, the index had shrunk to 40 points, having lost 90% of its level in early September 1929. Brokers, along with other New Yorkers, stood in line for free soup and looked for places to sleep on benches in Central Park.

The largest one-day decline in the Ju-Jones index was minus 508 points, 22.61%. One of the possible reasons is a computer failure caused by software trading and the beginning of large-scale use of stock exchange robots. Another version is the unbalanced actions of index arbitrageurs and investment managers to protect their portfolios. Based on the results of October 19, 1987, the exchange decided to suspend trading in the event of sharp market fluctuations.

October 13, 1989- “mini-crash”-89. The Dow fell 190 points on the day (6.91%). Possible market reaction to the failure of a $6.75 billion deal to buy out the debts of UAL Corporation, the parent company of United Airlines, which is in bankruptcy status.

October 27, 1997- “mini-accident”-97. And it's October again. Well, an unlucky month for the American stock market. Even Mark Twain in the 19th century ironically said: “October is one of the most dangerous months of the year for playing on the stock exchange. The remaining dangerous months are: July, January, September, April, November, May, March, June, December, August and February.”

The source of the “mini-accident”-97 was the Asian crisis of 1997. Dow Jones lost 554 points or 7.18% during the day. To stop the dangerous situation, a “circuit breaker” rule was introduced - a temporary suspension of trading.

September 15, 2008- The Dow dropped 504 points (4.62%). Reaction to the largest bankruptcy in US history - the collapse of Lehman Brothers. The exchange prohibits the opening of short positions in financial sector shares for three weeks. However, the Dow Jones cannot exit the turbulence zone until December. September 29 - minus 6.98%, October 9 - minus 7.33%, October 15 - minus 7.87% (October again!), December 1 - minus 7.70%. Ultimately, 2008 was the third worst year in Dow history, behind 1931 and 1907, with the index losing 33.84%.

May 6, 2010- the famous Flash Crash occurred, also known as The Crash of 2:45 or 2010 Flash Crash. The largest stock indices S&P500, Nasdaq Composite and, of course, the Dow Jones Industrial Average suddenly begin to collapse at 2.32 days and then, after 36 minutes, almost completely recover. The Dow fell in absolute terms to a record 998.5 points (9.2%).

The events of 05/06/2010 became the subject of a separate investigation by regulators - SEQ and CFTC (Commodity Futures Trading Commission). The joint report on the causes of the Flash Crash describes minute by minute the actions of cross-market arbitrageurs and high-frequency traders (HFT-traders) - participants and possible culprits of the event.

Interesting facts about the New York Stock Exchange

The New York Stock Exchange is also known as the Big Board.

The total market capitalization of the stock market on the NYSE is $19.6 trillion (May 2015). By this indicator, the NYSE is the largest stock exchange in the world. The average trading volume per session is $169 billion (2013). The number of companies listed is about 3000.

On September 16, 1920, at noon, a bomb exploded outside the NYSE building. To be precise, the explosion occurred in front of the entrance to the Morgan House at 23 Wall Street. Between 30 and 40 people were killed and about 400 were injured.

Anarchists took responsibility for the terrorist attack. The culprits were not found. In 1940, the FBI closed the case. The walls of the NYSE and JP Morgan (now home to Deutsche Bank) still show signs of shrapnel.

In 1967, members of the radical youth movement Yippie (The Youth International Party) entered the exchange gallery and threw dollars, real and fake, into the trading floor. Some traders booed the trick, and there were those who picked up the bills. The Exchange paid additional attention to external security issues. Now it’s not at all easy to get into it from the street. The windows have bulletproof glass.

The NYSE was closed on October 29 and 30, 2012 due to Hurricane Sandy. The previous closure of the exchange due to bad weather for two days in a row was back in 1888, on March 12 and 13.

On May 1, 2014, the Securities and Exchange Commission (SEC) fined the NYSE $4.5 million for violating trading rules.

One of the main characters in the trading floor (“pit”) of the exchange is a specialist broker. He organizes trading for this stock in the form of a continuous auction. Now, of course, almost everything is computerized, but previously only notes and loud voices of brokers (and sometimes their elbows) in line at the counter where this same auctioneer stood were used. The specialist is not full-time employee exchange and is hired by a brokerage house that is a member of the NYSE.

You can buy a place on the stock exchange. It is the same product as a stock. And its value rises during economic growth and falls during periods of depression. Maximum price was recorded on the eve of “black” October 1929 - $625 thousand. Adjusted for inflation, today it is over 6 million dollars. In the 1990s - 2000s, prices ranged from 1 to 4 million. The youngest buyer of an exchange place was a certain William O’Neill at the age of 30.

At the NYSE, like at any other enterprise, entire dynasties work. The most famous are the Barnes family. Five generations of Barnes have been members of the exchange. From Winthrop H. Barnes 1894 to Derek J. Barnes (2003).

In September 2011, the financial center of New York was covered by a wave of protests under the slogan “Occupy Wall Street”, Occupy Wall Street. Protesters blamed the "criminal financial elite" and called for a structural overhaul of today's "unfair" economy.

The main object near which the fighters against capitalism definitely wanted to hold their rallies was predictably the NYSE building on Wall Street, a symbol of American financial power, huge money and component the great American dream.

Stay up to date with all the important events of United Traders - subscribe to our