New York Stock Exchange (NYSE)

Definition

The New York Stock Exchange (NYSE) is the world's largest stock exchange by market capitalization of its listed companies. * Located at 11 Wall Street in Lower Manhattan, NYC, it is the physical and symbolic center of American capitalism. * It is home to the most established and stable corporations, often referred to as "Blue Chips" (e.g., Coca-Cola, Walmart, Goldman Sachs).

The Big Board

It is famously nicknamed "The Big Board." * Listing on the NYSE is considered a badge of honor and stability due to its stringent financial and reporting requirements. * Unlike the tech-heavy Nasdaq, the NYSE represents the "Old Economy" and industrial might.

Trading Mechanism: Auction Market

While Nasdaq is a dealer market (computer-to-computer), the NYSE is primarily an Auction Market. * DMMs (Designated Market Makers): Human specialists on the trading floor facilitate trades and ensure liquidity for specific stocks. * Although most trading is now electronic, the NYSE maintains its iconic physical trading floor, blending tradition with modern technology.

The Buttonwood Agreement

• The exchange traces its origins back to 1792, when 24 stockbrokers signed the "Buttonwood Agreement" under a buttonwood tree on Wall Street. This historical root gives it a sense of heritage that no other exchange can match.