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The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American
stock exchange A stock exchange, securities exchange, or bourse is an Exchange (organized market), exchange where stockbrokers and stock trader, traders can buy and sell security (finance), securities, such as share (finance), shares of stock, Bond (finance) ...
in the
Financial District A financial district is usually a central area in a city where financial services firms such as bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making lo ...
of
Lower Manhattan Lower Manhattan (also known as Downtown Manhattan or Downtown New York) is the southernmost part of Manhattan, the central Boroughs of New York City, borough for business, culture, and Government of New York City, government in New York City, whi ...

Lower Manhattan
in
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

New York City
. It is by far the world's largest stock exchange by
market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...
of its listed companies at US$30.1 trillion as of February 2018. The average daily trading value was approximately 169 billion in 2013. The NYSE trading floor is at the
New York Stock Exchange Building The New York Stock Exchange Building (also the NYSE Building), in the Financial District of Lower Manhattan Lower Manhattan (also known as Downtown Manhattan or Downtown New York) is the southernmost part of Manhattan, the central Boroughs ...
on 11
Wall Street Wall Street is an eight-block-long street in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It runs between Broadway (Manhattan), Broadway in the west to South Street (Manhattan), South Street and ...

Wall Street
and 18
Broad Street
Broad Street
and is a
National Historic Landmark A National Historic Landmark (NHL) is a National Register of Historic Places property types, building, district, object, site, or structure that is officially recognized by the Federal government of the United States, United States government fo ...
. An additional trading room, at
30 Broad Street The Continental Bank Building is a 50-story skyscraper at 30 Broad Street (Manhattan), Broad Street in the Financial District, Manhattan, Financial District of Manhattan, New York City. It was completed in 1932 in the Art Deco style. It is next t ...
, was closed in February 2007. The NYSE is owned by
Intercontinental Exchange Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell ...
, an American holding company that it also lists (). Previously, it was part of NYSE Euronext (NYX), which was formed by the NYSE's 2007 merger with
Euronext Euronext N.V. (short for European New Exchange Technology) is a pan-European Exchange (organized market), bourse that offers various trading and post-trade services. Traded assets include regulated equities, exchange-traded funds (ETF), warrants ...
.


History

The earliest recorded organization of
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
trading in New York among
broker A broker is a person or firm who arranges transactions between a Purchasing, buyer and a sales, seller for a commission (remuneration), commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a :wikt:princip ...
s directly dealing with each other can be traced to the
Buttonwood Agreement The Buttonwood Agreement is the founding document of what is now New York Stock Exchange and is one of the most important financial documents in U.S. history. The agreement organized securities trading in New York City and was signed on May 17, ...
. Previously, securities exchange had been intermediated by the
auction An auction is usually a process of Trade, buying and selling Good (economics), goods or Service (economics), services by offering them up for Bidding, bids, taking bids, and then selling the item to the highest bidder or buying the item from the ...

auction
eers, who also conducted more mundane auctions of
commodities In economics, a commodity is an economic goods, good, usually a resource, that has full or substantial fungibility: that is, the Market (economics), market treats instances of the good as equivalent or nearly so with no regard to who Production ...
such as wheat and tobacco. OCRed document unreable On May 17, 1792, twenty-four brokers signed the Buttonwood Agreement, which set a floor commission rate charged to clients and bound the signers to give preference to the other signers in securities sales. The earliest securities traded were mostly governmental securities such as War Bonds from the Revolutionary War and
First Bank of the United States First or 1st is the ordinal form of the number one (#1). First or 1st may also refer to: * World record, specifically the first instance of a particular achievement Arts and media Music * 1$T, American rapper, singer-songwriter, DJ, and re ...

First Bank of the United States
stock, although
Bank of New York The Bank of New York Mellon Corporation, commonly known as BNY Mellon, is an American investment banking services holding company headquartered in New York City. BNY Mellon was formed from the merger of The Bank of New York and the Mellon Financ ...
stock was a non-governmental security traded in the early days. The
Bank of North America The Bank of North America was the first chartered bank in the United States, and served as the country's first ''de facto'' central bank. Chartered by the Congress of the Confederation on May 26, 1781, and opened in Philadelphia on January 7, 17 ...

Bank of North America
, along with the First Bank of the United States and the Bank of New York, were the first shares traded on the New York Stock Exchange. In 1817, the stockbrokers of New York, operating under the
Buttonwood Agreement The Buttonwood Agreement is the founding document of what is now New York Stock Exchange and is one of the most important financial documents in U.S. history. The agreement organized securities trading in New York City and was signed on May 17, ...
, instituted new reforms and reorganized. After sending a delegation to
Philadelphia Philadelphia, often called Philly, is the List of municipalities in Pennsylvania#Municipalities, largest city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, the List of United States cities by population, sixth-largest city i ...

Philadelphia
to observe the organization of their board of brokers, restrictions on manipulative trading were adopted, as well as formal organs of governance. After re-forming as the New York Stock and Exchange Board, the broker organization began renting out space exclusively for securities trading, which previously had been taking place at the . Several locations were used between 1817 and 1865, when the present location was adopted. The invention of the
electrical telegraph Electrical telegraphs were point-to-point text messaging systems, primarily used from the 1840s until the late 20th century. It was the first electrical telecommunications system and the most widely used of a number of early messaging systems ...
consolidated markets and New York's market rose to dominance over Philadelphia after weathering some market panics better than other alternatives. The Open Board of Stock Brokers was established in 1864 as a competitor to the NYSE. With 354 members, the Open Board of Stock Brokers rivaled the NYSE in membership (which had 533) "because it used a more modern, continuous trading system superior to the NYSE’s twice-daily call sessions". The Open Board of Stock Brokers merged with the NYSE in 1869. Robert Wright of ''Bloomberg'' writes that the merger increased the NYSE's members as well as trading volume, as "several dozen regional exchanges were also competing with the NYSE for customers. Buyers, sellers and dealers all wanted to complete transactions as quickly and cheaply as technologically possible and that meant finding the markets with the most trading, or the greatest liquidity in today’s parlance. Minimizing competition was essential to keep a large number of orders flowing, and the merger helped the NYSE maintain its reputation for providing superior liquidity." The
Civil War A civil war or intrastate war is a war between organized groups within the same Sovereign state, state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change go ...
greatly stimulated speculative securities trading in New York. By 1869, membership had to be capped, and has been sporadically increased since. The latter half of the nineteenth century saw rapid growth in securities trading. Securities trade in the latter nineteenth and early twentieth centuries was prone to panics and crashes. Government regulation of securities trading was eventually seen as necessary, with arguably the most dramatic changes occurring in the 1930s after a major stock market crash precipitated the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The Financial contagion, ...
. The NYSE has also imposed additional rules in response to shareholder protection controls, e.g. in 2012, the NYSE imposed rules restricting brokers from voting uninstructed shares. The Stock Exchange Luncheon Club was situated on the seventh floor from 1898 until its closure in 2006. On April 21, 2005, the NYSE announced its plans to merge with
Archipelago An archipelago ( ), sometimes called an island group or island chain, is a chain, cluster, or collection of islands, or sometimes a sea containing a small number of scattered islands. Examples of archipelagos include: the List of islands ...
in a deal intended to reorganize the NYSE as a publicly traded company. NYSE's governing board voted to merge with rival Archipelago on December 6, 2005, and became a for-profit, public company. It began trading under the name NYSE Group on March 8, 2006. On April 4, 2007, the NYSE Group completed its merger with Euronext, the European combined stock market, thus forming NYSE Euronext, the first transatlantic stock exchange. Wall Street is the leading U.S. money center for international financial activities and the foremost U.S. location for the conduct of wholesale financial services. "It comprises a matrix of wholesale financial sectors, financial markets, financial institutions, and financial industry firms" (Robert, 2002). The principal sectors are securities industry, commercial banking, asset management, and insurance. Prior to the acquisition of NYSE Euronext by the ICE in 2013, Marsh Carter was the Chairman of the NYSE and the CEO was Duncan Niederauer. Currently, the chairman is Jeffrey Sprecher. In 2016, NYSE owner Intercontinental Exchange Inc. earned $419 million in listings-related revenues.


Notable events


20th century

The exchange was closed shortly after the beginning of World War I (July 31, 1914), but it partially re-opened on November 28 of that year in order to help the war effort by trading bonds, and completely reopened for stock trading in mid-December. On September 16, 1920, the Wall Street bombing occurred outside the building, killing thirty-eight people and injuring hundreds more. The
Black Thursday Black Thursday is a term used to refer to typically negative, notable events that have occurred on a Thursday Thursday is the Names of the days of the week, day of the week between Wednesday and Friday. According to the ISO 8601 internationa ...
crash of the Exchange on October 24, 1929, and the sell-off panic which started on
Black Tuesday The Wall Street Crash of 1929, also known as the Great Crash, was a major American stock market crash that occurred in the autumn of 1929. It started in September and ended late in October, when share prices on the New York Stock Exchange colla ...
, October 29, are often blamed for precipitating the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The Financial contagion, ...

Great Depression
. In an effort to restore investor confidence, the Exchange unveiled a fifteen-point program aimed to upgrade protection for the investing public on October 31, 1938. On October 1, 1934, the exchange was registered as a national securities exchange with the U.S. Securities and Exchange Commission, with a president and a thirty-three-member board. On February 18, 1971, the non-profit corporation was formed, and the number of board members was reduced to twenty-five. One of
Abbie Hoffman Abbot Howard "Abbie" Hoffman (November 30, 1936 – April 12, 1989) was an American political and social activist who co-founded the Youth International Party ("Yippies") and was a member of the Chicago Seven. He was also a leading proponen ...

Abbie Hoffman
's well-known publicity stunts took place in 1967, when he led members of the
Yippie The Youth International Party (YIP), whose members were commonly called Yippies, was an American youth-oriented Radical politics, radical and counterculture, countercultural revolutionary offshoot of the Free Speech Movement, free speech and an ...
movement to the Exchange's gallery. The provocateurs hurled fistfuls of dollars toward the trading floor below. Some traders booed, and some laughed and waved. Three months later the stock exchange enclosed the gallery with bulletproof glass. Hoffman wrote a decade later, "We didn't call the press; at that time we really had no notion of anything called a media event." On October 19, 1987, the
Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...

Dow Jones Industrial Average
(DJIA) dropped 508 points, a 22.6% loss in a single day, the second-biggest one-day drop the exchange had experienced.
Black Monday Black Monday refers to specific Mondays when undesirable or turbulent events have occurred. It has been used to designate massacres, military battles, and stock market crashes. Historic events *1209, Dublin – when a group of 500 recently arriv ...
was followed by Terrible Tuesday, a day in which the Exchange's systems did not perform well and some people had difficulty completing their trades. Subsequently, there was another major drop for the Dow on October 13, 1989—the Mini-Crash of 1989. The crash was apparently caused by a reaction to a news story of a $6.75 billion leveraged buyout deal for UAL Corporation, the parent company of
United Airlines United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois Illinois ( ) is a state in the Midwestern United States, Midwestern United States. Its larg ...

United Airlines
, which broke down. When the UAL deal fell through, it helped trigger the collapse of the
junk bond In finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of Production (economics), production, Distribution (economics), distribution, and Consump ...
market causing the Dow to fall 190.58 points, or 6.91 percent. Similarly, there was a panic in the financial world during the year of 1997; the
Asian Financial Crisis The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1 ...

Asian Financial Crisis
. Like the fall of many foreign markets, the Dow suffered a 7.18% drop in value (554.26 points) on October 27, 1997, in what later became known as the 1997 Mini-Crash but from which the DJIA recovered quickly. This was the first time that the "
circuit breaker A circuit breaker is an electrical safety device designed to protect an Electrical network, electrical circuit from damage caused by an overcurrent or short circuit. Its basic function is to interrupt current flow to protect equipment and ...
" rule had operated.


21st century

On January 26, 2000, an altercation during filming of the music video for
Rage Against the Machine Rage Against the Machine (often abbreviated as RATM or shortened to simply Rage) is an American Rock music, rock band from Los Angeles, California. Formed in 1991, the group consists of vocalist Zack de la Rocha, bassist and backing vocalist T ...
's " Sleep Now in the Fire", directed by
Michael Moore Michael Francis Moore (born April 23, 1954) is an American filmmaker, author and Left-wing politics, left-wing activist. His works frequently address the topics of globalization and capitalism. Moore won the 2002 Academy Award for Best Docum ...

Michael Moore
, caused the doors of the exchange to be closed and the band to be escorted from the site by security after the members attempted to gain entry into the exchange. In the aftermath of the September 11 attacks, the NYSE was closed for four trading sessions, resuming on Monday, September 17, one of the rare times the NYSE was closed for more than one session and only the third time since March 1933. On the first day, the NYSE suffered a 7.1% drop in value (684 points); after a week, it dropped by 14% (1,370 points). An estimated $1.4 trillion was lost within five days of trading. The NYSE was only 5 blocks from
Ground Zero In relation to nuclear explosions and other large bombs, ground zero (also called surface zero) is the point on the Earth's surface closest to a detonation. In the case of an explosion above the ground, ''ground zero'' is the point on the ground ...
. On May 6, 2010, the Dow Jones Industrial Average posted its largest intraday percentage drop since the crash on October 19, 1987, with a 998-point loss later being called the 2010 Flash Crash (as the drop occurred in minutes before rebounding). The SEC and CFTC published a report on the event, although it did not come to a conclusion as to the cause. The regulators found no evidence that the fall was caused by erroneous ("fat finger") orders. On October 29, 2012, the stock exchange was shut down for two days due to
Hurricane Sandy Hurricane Sandy (unofficially referred to as ''Superstorm Sandy'') was an extremely destructive and strong Atlantic hurricane, as well as the largest Atlantic hurricane on record as measured by diameter, with tropical-storm-force winds spann ...
. The last time the stock exchange was closed due to weather for a full two days was on March 12 and 13, 1888. On May 1, 2014, the stock exchange was fined $4.5 million by the Securities and Exchange Commission to settle charges that it had violated market rules. On August 14, 2014,
Berkshire Hathaway Berkshire Hathaway Inc. () is an American Multinational corporation, multinational conglomerate (company), conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from ...

Berkshire Hathaway
's A Class shares, the highest priced shares on the NYSE, hit $200,000 a share for the first time. On July 8, 2015, technical issues affected the stock exchange, halting trading at 11:32 am ET. The NYSE reassured stock traders that the outage was "not a result of a cyber breach", and the
Department of Homeland Security The United States Department of Homeland Security (DHS) is the Federal government of the United States, U.S. United States federal executive departments, federal executive department responsible for public security, roughly comparable to the I ...
confirmed that there was "no sign of malicious activity". Trading eventually resumed at 3:10 pm ET the same day. On May 25, 2018, Stacey Cunningham, the NYSE's chief operating officer, became the Big Board's 67th president, succeeding Thomas Farley. She is the first female leader in the exchange's 226-year history. In March 2020, the NYSE announced plans to temporarily move to all-electronic trading on March 23, 2020, due to the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
. Along with the PHLX and the BSE, the NYSE reopened on May 26, 2020.


Building

The main
New York Stock Exchange Building The New York Stock Exchange Building (also the NYSE Building), in the Financial District of Lower Manhattan Lower Manhattan (also known as Downtown Manhattan or Downtown New York) is the southernmost part of Manhattan, the central Boroughs ...
, built in 1903, is at 18 Broad Street, between the corners of Wall Street and Exchange Place, and was designed in the Beaux Arts style by George B. Post. The adjacent structure at 11 Wall Street, completed in 1922, was designed in a similar style by Trowbridge & Livingston. The buildings were both designated a
National Historic Landmark A National Historic Landmark (NHL) is a National Register of Historic Places property types, building, district, object, site, or structure that is officially recognized by the Federal government of the United States, United States government fo ...
in 1978. 18 Broad Street is also a
New York City designated landmark The New York City Landmarks Preservation Commission (LPC) is the New York City agency charged with administering the city's Landmarks Preservation Law. The LPC is responsible for protecting New York City's architecturally, historically, and cu ...
.


Official holidays

The New York Stock Exchange is closed on
New Year's Day New Year's Day is a festival observed in most of the world on 1 January, the first day of the year in the modern Gregorian calendar. 1 January is also New Year's Day on the Julian calendar, but this is not the same day as the Gregorian one. Whi ...

New Year's Day
, Martin Luther King Jr. Day,
Washington's Birthday Presidents' Day, also called Washington's Birthday at the federal governmental level, is a holiday in the United States celebrated on the third Monday of February to honor all persons who served as presidents of the United States The pres ...
,
Good Friday Good Friday is a Christian holiday commemorating the crucifixion of Jesus and his death at Calvary. It is observed during Holy Week as part of the Paschal Triduum. It is also known as Holy Friday, Great Friday, Great and Holy Friday (also Holy ...
,
Memorial Day Memorial Day (originally known as Decoration Day) is a federal holidays in the United States, federal holiday in the United States for mourning the U.S. military personnel who have fought and died while serving in the United States armed for ...
, Juneteenth National Independence Day,
Independence Day An independence day is an annual event commemorating the anniversary An anniversary is the date on which an event took place or an institution Institutions are humanly devised structures of rules and norms that shape and constrain ...
,
Labor Day Labor Day is a federal holiday in the United States celebrated on the first Monday in September to honor and recognize the American labor movement The labor history of the United States describes the history of organized labor, US labor l ...
,
Thanksgiving Thanksgiving is a national holiday celebrated on various dates in the United States, Canada, Grenada, Saint Lucia, Liberia, and unofficially in countries like Brazil and Philippines. It is also observed in the Netherlander town of Leiden and ...
, and
Christmas Christmas is an annual festival commemorating Nativity of Jesus, the birth of Jesus, Jesus Christ, observed primarily on December 25 as a religious and cultural celebration among billions of people Observance of Christmas by country, around t ...
. When those holidays occur on a weekend, the holiday is observed on the closest weekday. In addition, the Stock Exchange closes early on the day before Independence Day, the day after Thanksgiving, and Christmas Eve. The NYSE averages about 253
trading day In business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entere ...
s per year.


Trading

The New York Stock Exchange (sometimes referred to as "The Big Board") provides a means for buyers and sellers to
trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market (economics), market. An early form of trade, barter, s ...
shares In finance, financial markets, a share is a unit of Equity (finance), equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers t ...
of
stock In finance, stock (also capital stock) consists of all the Share (finance), shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which owners ...
in companies registered for public trading. The NYSE is open for trading Monday through Friday from 9:30 am – 4:00 pm ET, with the exception of holidays declared by the Exchange in advance. The NYSE trades in a continuous auction format, where traders can execute stock transactions on behalf of investors. They will gather around the appropriate post where a specialist broker, who is employed by a NYSE member firm (that is, they are not an employee of the New York Stock Exchange), acts as an auctioneer in an
open outcry Open outcry is a method of communication between professionals on a stock exchange A stock exchange, securities exchange, or bourse is an Exchange (organized market), exchange where stockbrokers and stock trader, traders can buy and se ...
auction market environment to bring buyers and sellers together and to manage the actual auction. They do on occasion (approximately 10% of the time) facilitate the trades by committing their own capital and as a matter of course disseminate information to the crowd that helps to bring buyers and sellers together. The auction process moved toward automation in 1995 through the use of wireless handheld computers (HHC). The system enabled traders to receive and execute orders electronically via wireless transmission. On September 25, 1995, NYSE member Michael Einersen, who designed and developed this system, executed 1000 shares of IBM through this HHC ending a 203-year process of paper transactions and ushering in an era of automated trading.


Electronic

As of January 24, 2007, all NYSE stocks can be traded via its electronic hybrid market (except for a small group of very high-priced stocks). Customers can now send orders for immediate electronic execution, or route orders to the floor for trade in the auction market. In the first three months of 2007, in excess of 82% of all order volume was delivered to the floor electronically. NYSE works with US regulators such as the SEC and CFTC to coordinate risk management measures in the electronic trading environment through the implementation of mechanisms like circuit breakers and liquidity replenishment points. Until 2005, the right to directly trade shares on the exchange was conferred upon owners of the 1,366 "seats". The term comes from the fact that up until the 1870s NYSE members sat in chairs to trade. In 1868, the number of seats was fixed at 533, and this number was increased several times over the years. In 1953, the number of seats was set at 1,366. These seats were a sought-after commodity as they conferred the ability to directly trade stock on the NYSE, and seat holders were commonly referred to as members of the NYSE. The Barnes family is the only known lineage to have five generations of NYSE members: Winthrop H. Barnes (admitted 1894), Richard W.P. Barnes (admitted 1926), Richard S. Barnes (admitted 1951), Robert H. Barnes (admitted 1972), Derek J. Barnes (admitted 2003). Seat prices varied widely over the years, generally falling during recessions and rising during economic expansions. The most expensive inflation-adjusted seat was sold in 1929 for $625,000, which, today, would be over six million dollars. In recent times, seats have sold for as high as $4 million in the late 1990s and as low as $1 million in 2001. In 2005, seat prices shot up to $3.25 million as the exchange entered into an agreement to merge with Archipelago and became a for-profit, publicly traded company. Seat owners received $500,000 in cash per seat and 77,000 shares of the newly formed corporation. The NYSE now sells one-year licenses to trade directly on the exchange. Licenses for floor trading are available for $40,000 and a license for bond trading is available for as little as $1,000 as of 2010. Neither are resell-able, but may be transferable during a change of ownership of a corporation holding a trading license. Following the
Black Monday Black Monday refers to specific Mondays when undesirable or turbulent events have occurred. It has been used to designate massacres, military battles, and stock market crashes. Historic events *1209, Dublin – when a group of 500 recently arriv ...
market crash in 1987, NYSE imposed trading curbs to reduce market volatility and massive panic sell-offs. Following the 2011 rule change, at the start of each trading day, the NYSE sets three circuit breaker levels at levels of 7% (Level 1), 13% (Level 2), and 20% (Level 3) of the average closing price of the
S&P 500 The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of D ...
for the preceding trading day. Level 1 and Level 2 declines result in a 15-minute trading halt unless they occur after 3:25 pm, when no trading halts apply. A Level 3 decline results in trading being suspended for the remainder of the day. (The biggest one-day decline in the S&P 500 since 1987 was the 11.98% drop on March 16, 2020.)


NYSE Composite Index

In the mid-1960s, the
NYSE Composite The NYSE Composite (^NYA) is a stock market index In finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of Production (economics), production, Dis ...
Index Index (or its plural form indices) may refer to: Arts, entertainment, and media Fictional entities * Index (''A Certain Magical Index''), a character in the light novel series ''A Certain Magical Index'' * The Index, an item on a Halo megastru ...
(NYSE: NYA) was created, with a base value of 50 points equal to the 1965 yearly close. This was done to reflect the value of all stocks trading at the exchange instead of just the 30 stocks included in the
Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...

Dow Jones Industrial Average
. To raise the profile of the composite index, in 2003, the NYSE set its new base value of 5,000 points equal to the 2002 yearly close. Its close at the end of 2013 was 10,400.32.


Timeline

*In 1792, NYSE acquires its first traded securities. *In 1817, the constitution of the New York Stock and Exchange Board is adopted. It had also been established by the New York brokers as a formal organization. *In 1863, the name changed to the New York Stock Exchange. *In 1865, the
New York Gold Exchange The New York Gold Exchange was an exchange formed shortly after the beginning of the American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by Names of the American Civil War, other names) was a civi ...
was acquired by the NYSE.George Winslow, "New York Gold Market" in ''
The Encyclopedia of New York City ''The Encyclopedia of New York City'' is a reference book on New York City, New York (state), New York. Edited by Columbia University history professor Kenneth T. Jackson, the book was first published in 1995 by the New-York Historical Society a ...
'' (2d ed.: eds. Kenneth T. Jackson, Lisa Keller & Nancy Flood).
*In 1867, stock tickers were first introduced. *In 1885, the 400 NYSE members in the Consolidated Stock Exchange withdraw from Consolidated over disagreements on exchange trade areas. *In 1896, the Dow Jones Industrial Average (DJIA) is first published in ''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its The Wall Street Journal Asia, ...
''. *In 1903, the NYSE moves into new quarters at 18 . *In 1906, the DJIA exceeds 100 on January 12. *In 1907,
Panic of 1907 The Panic of 1907, also known as the 1907 Bankers' Panic or Knickerbocker Crisis, was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange fell almost 50% from ...
. *In 1909, trading in bonds begins. *In 1915, basis of quoting and trading in stocks changes from percent of par value to dollars. *In 1920, a bomb exploded on Wall Street outside the NYSE building. Thirty-eight killed and hundreds injured. *In 1923, Poor's Publishing introduced their "Composite Index", today referred to as the
S&P 500 The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of D ...
, which tracked a small number of companies on the NYSE. *In 1929, the central quote system was established;
Black Thursday Black Thursday is a term used to refer to typically negative, notable events that have occurred on a Thursday Thursday is the Names of the days of the week, day of the week between Wednesday and Friday. According to the ISO 8601 internationa ...
, October 24 and
Black Tuesday The Wall Street Crash of 1929, also known as the Great Crash, was a major American stock market crash that occurred in the autumn of 1929. It started in September and ended late in October, when share prices on the New York Stock Exchange colla ...
, October 29 signal the end of the
Roaring Twenties The Roaring Twenties, sometimes stylized as Roaring '20s, refers to the 1920s decade in music and fashion, as it happened in Western world, Western society and Western culture. It was a period of economic prosperity with a distinctive cultura ...
bull market. *In 1938, NYSE names its first president. *In 1943, the trading floor is opened to women while men were serving in
WWII World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
. *In 1949, the third longest (eight-year)
bull market A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-fram ...
begins. *In 1954, the DJIA surpasses its 1929 peak in inflation-adjusted dollars. *In 1956, the DJIA closes above 500 for the first time on March 12. *In 1957, after Poor's Publishing merged with the Standard Statistics Bureau, the Standard & Poors composite index grew to track 500 companies on the NYSE, becoming known as the S&P 500. *In 1966, NYSE begins a composite index of all listed common stocks. This is referred to as the "Common Stock Index" and is transmitted daily. The starting point of the index is 50. It is later renamed the NYSE Composite Index. *In 1967,
Muriel Siebert Muriel Faye Siebert (September 12, 1928 – August 24, 2013) was an American businesswoman who was the first woman to own a seat on the New York Stock Exchange, and the first woman to head one of the NYSE's member firms. She joined the 1,365 mal ...
becomes the first female member of the New York Stock Exchange. *In 1967, protesters led by
Abbie Hoffman Abbot Howard "Abbie" Hoffman (November 30, 1936 – April 12, 1989) was an American political and social activist who co-founded the Youth International Party ("Yippies") and was a member of the Chicago Seven. He was also a leading proponen ...

Abbie Hoffman
throw mostly fake dollar bills at traders from gallery, leading to the installation of bullet-proof glass. *In 1970, the
Securities Investor Protection Corporation The Securities Investor Protection Corporation (SIPC ) is a Federal government of the United States, federally mandated, Non-profit organization, non-profit, member-funded, United States corporation created under the Securities Investor Protection ...
was established. *In 1971, NYSE incorporated and recognized as Not-for-Profit organization. *In 1971, the
NASDAQ The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City New York, often called New York City or NYC, is the ...
was founded and competes with the NYSE as the world's first electronic stock market. To date, the NASDAQ is the second-largest exchange in the world by market capitalization, behind only the NYSE. *In 1972, the DJIA closes above 1,000 for the first time on November 14. *In 1977, foreign brokers are admitted to NYSE. *In 1980, the New York Futures Exchange was established. *In 1987,
Black Monday Black Monday refers to specific Mondays when undesirable or turbulent events have occurred. It has been used to designate massacres, military battles, and stock market crashes. Historic events *1209, Dublin – when a group of 500 recently arriv ...
, October 19, sees the second-largest one-day DJIA percentage drop (22.6%, or 508 points) in history. *In 1987, membership in the NYSE reaches a record price of $1.5 million. *In 1989, On September 14, seven members of ACT-UP, The AIDS Coalition to Unleash Power, entered the NYSE and protested by chaining themselves to the balcony overlooking the trading floor and unfurling a banner, "SELL WELCOME," in reference to drug manufacturer Burroughs Wellcome. Following the protest,
Burroughs Wellcome GSK plc, formerly GlaxoSmithKline plc, is a British multinational pharmaceutical and biotechnology company with global headquarters in London London is the capital and List of urban areas in the United Kingdom, largest city of Englan ...
reduced the price of AZT (a drug used by people with living with HIV and AIDS) by over 30%. *In 1990, the longest (ten-year)
bull market A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-fram ...
begins. *In 1991, the DJIA exceeds 3,000. *In 1995, the DJIA exceeds 5,000. *In 1996, real-time ticker introduced. *In 1997, on October 27, a sell-off in Asia's stock markets hurts the U.S. markets as well; DJIA sees the largest one-day ''point'' drop of 554 (or 7.18%) in history. *In 1999, the DJIA exceeds 10,000 on March 29. *In 2000, the DJIA peaks at 11,722.98 on January 14; first NYSE global index is launched under the ticker NYIID. *In 2001, trading in fractions () ends, replaced by decimals (increments of $0.01, see Decimalization);
September 11 attacks The September 11 attacks, commonly known as 9/11, were four coordinated Suicide attack, suicide List of terrorist incidents, terrorist attacks carried out by al-Qaeda against the United States on Tuesday, September 11, 2001. That morning, ...
occur causing NYSE to close for four sessions. *In 2003,
NYSE Composite The NYSE Composite (^NYA) is a stock market index In finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of Production (economics), production, Dis ...
Index relaunched and value set equal to 5,000 points. *In 2006, NYSE and ArcaEx merge, creating NYSE Arca and forming the publicly owned, for-profit NYSE Group, Inc.; in turn, NYSE Group merges with
Euronext Euronext N.V. (short for European New Exchange Technology) is a pan-European Exchange (organized market), bourse that offers various trading and post-trade services. Traded assets include regulated equities, exchange-traded funds (ETF), warrants ...
, creating the first trans-Atlantic stock exchange group; DJIA tops 12,000 on October 19. *In 2007, US President
George W. Bush George Walker Bush (born July 6, 1946) is an American politician who served as the 43rd president of the United States from 2001 to 2009. A member of the Republican Party (United States), Republican Party, Bush family, and son of the 41st ...
shows up unannounced to the Floor about an hour and a half before a
Federal Open Market Committee The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. ...
interest-rate decision on January 31; NYSE announces its merger with the
American Stock Exchange NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known ...
; NYSE Composite closes above 10,000 on June 1;
DJIA The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexe ...
exceeds 14,000 on July 19 and closes at a peak of 14,164.53 on October 9. *In 2008, the DJIA loses more than 500 points on September 15 amid fears of bank failures, resulting in a permanent prohibition of naked short selling and a three-week temporary ban on all
short selling In finance, being short in an asset means investing in such a way that the investor will profit if the Market value, value of the asset falls. This is the opposite of a more conventional "Long (finance), long" Position (finance), position, wh ...
of financial stocks; in spite of this, record volatility continues for the next two months, culminating at -year market lows. *In 2009, the second longest and current
bull market A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-fram ...
begins on March 9 after the
DJIA The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexe ...
closes at 6,547.05 reaching a 12-year low; DJIA returns to 10,015.86 on October 14. *In 2013, the DJIA closes above 2007 highs on March 5; DJIA closes above 16,500 to end the year. *In 2014, the DJIA closes above 17,000 on July 3 and above 18,000 on December 23. *In 2015, the DJIA achieved an all-time high of 18,351.36 on May 19. *In 2015, the DJIA dropped over 1,000 points to 15,370.33 soon after open on August 24, 2015, before bouncing back and closing at 15,795.72, a drop of over 669 points. *In 2016, the DJIA hits an all-time high of 18,873.6. *In 2017, the DJIA reaches 20,000 for the first time (on January 25). *In 2018, the DJIA reaches 25,000 for the first time (on January 4). On February 5, the DJIA dropped 1,175 points, making it the largest point drop in history. *In 2020, the NYSE temporarily transitioned to electronic trading due to the
COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was COVID-19 pandemic in Hubei, identified in Wuhan, China, in December ...
pandemic.


Merger, acquisition, and control

In October 2008, NYSE Euronext completed acquisition of the
American Stock Exchange NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known ...
(AMEX) for $260 million in stock. On February 15, 2011, NYSE and
Deutsche Börse Deutsche Börse AG () or the Deutsche Börse Group, is a German company offering marketplace organizing for the trading of shares In finance, financial markets, a share is a unit of Equity (finance), equity ownership in the capital stock of ...
announced their merger to form a new company, as yet unnamed, wherein Deutsche Börse shareholders would have 60% ownership of the new entity, and NYSE Euronext shareholders would have 40%. On February 1, 2012, the
European Commission The European Commission (EC) is the Executive (government), executive of the European Union (EU). It operates as a cabinet government, with 27 European Commissioner, members of the Commission (informally known as "Commissioners") headed by a P ...
blocked the merger of NYSE with Deutsche Börse, after commissioner Joaquín Almunia stated that the merger "would have led to a near-monopoly in European financial derivatives worldwide". Instead, Deutsche Börse and NYSE would have to sell either their Eurex derivatives or
LIFFE The London International Financial Futures and Options Exchange (LIFFE, pronounced 'life') was a futures exchange A futures exchange or futures market is a central financial exchange where people can trade standardized futures contract ...
shares in order to not create a monopoly. On February 2, 2012, NYSE Euronext and Deutsche Börse agreed to scrap the merger. In April 2011,
Intercontinental Exchange Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell ...
(ICE), an American
futures exchange A futures exchange or futures market is a central financial exchange where people can trade standardized futures contract In finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not syno ...
, and
NASDAQ OMX Group Nasdaq, Inc. is an American multinational financial services Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including cred ...
had together made an unsolicited proposal to buy NYSE Euronext for approximately , a deal in which NASDAQ would have taken control of the stock exchanges. NYSE Euronext rejected this offer twice, but it was finally terminated after the
United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the United States government tasked with the enforcement of federal law and a ...
indicated their intention to block the deal due to
antitrust Competition law is the field of law Law is a set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise defi ...
concerns. In December 2012, ICE had proposed to buy NYSE Euronext in a
stock swap In corporate finance Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders ...
with a valuation of $8 billion. NYSE Euronext shareholders would receive either $33.12 in cash, or $11.27 in cash and approximately a sixth of a share of ICE. Jeffrey Sprecher, the chairman and CEO of ICE, will retain those positions, but four members of the NYSE board of directors will be added to the ICE board.


Opening and closing bells

The NYSE's opening and closing bells mark the beginning and the end of each trading day. The opening bell is rung at 9:30 am ET to mark the start of the day's trading session. At 4 pm ET the closing bell is rung and trading for the day stops. There are bells located in each of the four main sections of the NYSE that all ring at the same time once a button is pressed. There are three buttons that control the bells, located on the control panel behind the podium which overlooks the trading floor. The main bell, which is rung at the beginning and end of the trading day, is controlled by a green button. The second button, colored orange, activates a single-stroke bell that is used to signal a moment of silence. A third, red button controls a backup bell which is used in case the main bell fails to ring.


History

The signal to start and stop trading was not always a bell. The original signal was a
gavel A gavel is a small ceremonial mallet A mallet is a tool used for imparting force on another object, often made of rubber or sometimes wood, that is smaller than a Splitting maul, maul or beetle, and usually has a relatively large head. ...
(which is still in use today along with the bell), but during the late 1800s, the NYSE decided to switch the gavel for a gong to signal the day's beginning and end. After the NYSE changed to its present location at 18 Broad Street in 1903, the gong was switched to the bell format that is currently being used. A common sight today is the highly publicized events in which a celebrity or executive from a corporation stands behind the NYSE podium and pushes the button that signals the bells to ring. Due to the amount of coverage that the opening/closing bells receive, many companies coordinate new product launches and other marketing-related events to start on the same day as when the company's representatives ring the bell. It was only in 1995 that the NYSE began having special guests ring the bells on a regular basis; prior to that, ringing the bells was usually the responsibility of the exchange's floor managers.


Notable bell-ringers

Many of the people who ring the bell are business executives whose companies trade on the exchange. However, there have also been many famous people from outside the world of business that have rung the bell. Athletes such as
Joe DiMaggio Joseph Paul DiMaggio (November 25, 1914 – March 8, 1999), nicknamed "Joltin' Joe", "The Yankee Clipper" and "Joe D.", was an American baseball center fielder who played his entire 13-year career in Major League Baseball for the New York Yanke ...
of the
New York Yankees The New York Yankees are an American professional baseball team based in the Boroughs of New York City, New York City borough of the Bronx. The Yankees compete in Major League Baseball (MLB) as a member club of the American League (AL) Amer ...
and Olympic swimming champion
Michael Phelps Michael Fred Phelps II (born June 30, 1985) is an American former competitive swimmer. He is the most successful and list of multiple Olympic medalists, most decorated Olympian of all time with a total of 28 medals. Phelps also holds the al ...
, entertainers such as
rapper Rapping (also rhyming, spitting, emceeing or MCing) is a musical form of vocal delivery that incorporates "rhyme, rhythmic speech, and street vernacular". It is performed or chanted, usually over a backing beat or musical accompaniment. The ...
Snoop Dogg Calvin Cordozar Broadus Jr. (born October 20, 1971), known professionally as Snoop Dogg (previously Snoop Doggy Dogg and briefly Snoop Lion), is an American rapper. His fame dates back to 1992 when he featured on Dr. Dre's debut solo single, " ...
, members of
ESPN ESPN (originally an initialism for Entertainment and Sports Programming Network) is an American international basic cable sports channel owned by ESPN Inc., owned jointly by The Walt Disney Company (80%) and Hearst Communications (20%). T ...
’s College GameDay crew, singer and actress
Liza Minnelli Liza May Minnelli ( ; born March 12, 1946) is an American actress, singer, dancer, and choreographer. Known for her commanding stage presence and powerful alto singing voice, Minnelli is among a rare group of performers awarded an List of EGOT w ...
and members of the band
Kiss A kiss is the touch or pressing of one's lips against another person or an object. Cultural connotations of kissing vary widely. Depending on the culture and context, a kiss can express sentiments of love Love encompasses a range of s ...
, and politicians such as
Mayor of New York City The mayor of New York City, officially Mayor of the City of New York, is head of the executive branch of the government of New York City and the chief executive of New York City. The Mayoralty in the United States, mayor's office administers al ...
Rudy Giuliani Rudolph William Louis Giuliani (, ; born May 28, 1944) is an American politician and lawyer who served as the 107th Mayor of New York City from 1994 to 2001. He previously served as the United States Associate Attorney General from 1981 to 198 ...
and
President of South Africa The president of South Africa is the head of state and head of government of the Republic of South Africa. The president heads the executive branch of the Government of South Africa and is the commander-in-chief of the South African Nationa ...
Nelson Mandela Nelson Rolihlahla Mandela (; ; 18 July 1918 – 5 December 2013) was a South African Internal resistance to apartheid, anti-apartheid activist who served as the President of South Africa, first president of South Africa from 1994 to 1 ...
have all had the honor of ringing the bell. Two United Nations Secretaries General have also rung the bell. On April 27, 2006, Secretary-General Kofi Annan rang the opening bell to launch the United Nations Principles for Responsible Investment. On July 24, 2013, Secretary-General Ban Ki-moon rang the closing bell to celebrate the NYSE joining the United Nations Sustainable Stock Exchanges Initiative. In addition, there have been many bell-ringers who are famous for heroic deeds, such as members of the New York police and fire departments following the events of 9/11, members of the
United States Armed Forces The United States Armed Forces are the Military, military forces of the United States. The armed forces consists of six Military branch, service branches: the United States Army, Army, United States Marine Corps, Marine Corps, United States N ...
serving overseas, and participants in various charitable organizations. There have also been several fictional characters that have rung the bell, including
Mickey Mouse Mickey Mouse is an animated cartoon Character (arts), character co-created in 1928 by Walt Disney and Ub Iwerks. The longtime mascot of The Walt Disney Company, Mickey is an Anthropomorphism, anthropomorphic mouse who typically wears red sho ...
, the
Pink Panther ''The Pink Panther'' is an American media franchise primarily focusing on a series of comedy-mystery films featuring an inept French police detective, Inspector Clouseau, Inspector Jacques Clouseau. The franchise began with the release of the cla ...
, Mr. Potato Head, the
Aflac Aflac Inc. (American Family Life Assurance Company) is an American insurance company and is the largest provider of supplemental insurance in the United States. The company was founded in 1955 and is based in Columbus, Georgia. In the U.S., A ...
Duck, Gene and Jailbreak of
The Emoji Movie ''The Emoji Movie'' is a 2017 American computer animation, computer-animated science fiction comedy film produced by Columbia Pictures and Sony Pictures Animation, and distributed by Sony Pictures Motion Picture Group#Sony Pictures Releasing, ...
, and
Darth Vader Darth Vader is a fictional Character (arts), character in the ''Star Wars'' franchise. The character is the central antagonist of the Star Wars original trilogy, original trilogy and, as Anakin Skywalker, is one of the main protagonists in the ...
.


See also

* Aftermath of the September 11 attacks * Economy of New York City *
Economy of the United States The United States is a developed country, highly developed mixed-market economy and has the world's largest List of countries by GDP (nominal), nominal GDP and List of countries by total wealth, net wealth. It has the second-largest by List o ...
* List of American Exchanges * List of stock exchange mergers in the Americas * List of presidents of the New York Stock Exchange *
List of stock exchange trading hours This is a list of major stock exchanges. Those futures exchanges that also offer trading in security (finance), securities besides trading in futures contracts are listed both here and in the list of futures exchanges. There are sixteen stock ex ...
* Rule 48 * Series 14 exam *
Trading day In business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entere ...
* U.S. Securities and Exchange Commission *
List of stock exchanges in the Americas This is a list of active stock exchanges in the Americas. Stock exchange A stock exchange, securities exchange, or bourse is an Exchange (organized market), exchange where stockbrokers and stock trader, traders can buy and sell security (f ...


References


Citations


Sources

* * * * *


External links

* {{authority control Financial services companies established in 1817 1817 establishments in New York (state) Stock exchanges in the United States Companies based in New York City Financial services companies based in New York City American companies established in 1817 Intercontinental Exchange 2006 mergers and acquisitions 2012 mergers and acquisitions