NYSE (New York Stock Exchange)
Quick Definition
The world's largest stock exchange by market capitalization, located on Wall Street in New York City, known for listing established blue-chip companies.
Key Takeaways
- The NYSE is the world's largest stock exchange by market capitalization.
- It uses a hybrid model combining electronic trading with floor-based market makers.
- NYSE has stricter listing requirements and is known for blue-chip companies.
What Is NYSE (New York Stock Exchange)?
The New York Stock Exchange (NYSE) is the world's largest stock exchange by total market capitalization of listed companies, exceeding $25 trillion. Founded in 1792 under the Buttonwood Agreement, the NYSE is located at 11 Wall Street in Manhattan and remains a symbol of global capitalism. Unlike NASDAQ's fully electronic model, the NYSE uses a hybrid system combining electronic trading with designated market makers (DMMs) on the physical trading floor. The exchange lists many of the world's most established companies, including Berkshire Hathaway, JPMorgan Chase, Johnson & Johnson, and Walmart. NYSE has stricter listing requirements than NASDAQ, including higher minimum share price, earnings thresholds, and market cap requirements. The iconic opening and closing bells signal the start and end of each trading session, and the NYSE floor remains a backdrop for financial media worldwide.
NYSE (New York Stock Exchange) Example
- 1The NYSE traces its origins to 1792 when 24 stockbrokers signed the Buttonwood Agreement under a tree on Wall Street.
- 2Companies listed on the NYSE have a combined market capitalization exceeding $25 trillion.
Related Terms
NASDAQ
The National Association of Securities Dealers Automated Quotations — the second-largest stock exchange globally, known for its concentration of technology and growth companies.
Market Index
A statistical measure tracking the performance of a group of stocks representing a market or sector.
Dow Jones Industrial Average (DJIA)
A price-weighted index of 30 large U.S. blue-chip stocks, one of the oldest and most-watched market benchmarks.
Market Maker
A firm or individual that continuously quotes both buy and sell prices for a security, providing liquidity to the market.
Large-Cap
Companies with a market capitalization typically above $10 billion, considered stable blue-chip investments.
Stock
A security representing ownership in a corporation, entitling the holder to a share of profits and voting rights.
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