New York Stock Exchange (NYSE)

New York Stock Exchange is the main stock exchange in New York and the world-largest one in terms of capitalization. About 60% of world securities’ volume are accumulated at NYSE. This stock exchange is the most liquid, i.e. the speed of transaction (buying or short sale, bear transaction) is as fast as a fraction of a second. NYSE is the least liable to variations of security prices. About 3500 corporations are listed at NYSE. Among indices there are the world-known index of Dow Jones for securities of industrial companies as well as NYSE Composite which are determined here.

The stock exchange was founded on 17th of May, 1792. It has become a non-profit corporation belonged to 1336 individual members (this number has not changed since 1953). The seats of the members can be sold; cost of one seat is about 3 million dollars. The seats can also be for rent for those, who meet the requirements of NYSE. About one third of the seats are rented out.

Members of the stock exchange can act as a dealer, operation or registered broker. Members of NYSE make transactions between them without help of brokers. The trading at NYSE is mainly spot one, forward (future) transactions is limited by option transactions and credit purchase of securities are widespread but about 30% of market value of them must be paid by cash. Transactions with thousands of securities and shares are executed at the stock exchange. Securities of more than 1500 companies are listed at the stock. Overall capitalization of the companies trading on the stock exchange is $26.5 million dollars (2006).

It is the securities which are listed at the stock exchange have access permit to the trading. Unlike European stock exchanges, NYSE does not have the so-called securities of “the second” or “the third” list. However, listing requirements at NYSE is the strictest compared with other stock exchanges in the world.

In order to be quoted, a company must meet the following requirements:

• profit before repayment of tax for the last year — $2,5 million;
• profit for the previous 2 years — $2,0 million;
• net value of tangible assets — $18,0 million;
• number of shares in public ownership — $1,1 million;
• market value of shares — $18,0 million;
• minimum number of stockholders — 100.

In addition, average monthly volume of stock trading of the issuer must be no less than $100 000 during last 6 months.

In the beginning of 2006 NYSE completed the merging with Archipelago Holding (e-exchange) and for the first time for its history it offered its shares for investors. The trading of shares of NYSE Group is executed on the stock exchange. As for the beginning of March 2006 the capitalization made up $12.5 billion dollars.

NYSE is opened from Monday through Friday from 1:30 PM to 8:00 PM (GMT).

Contacts

Location: 11 Wall Street, New York, NY, 10005, USA; tel.: +1 (212) 656 3000, fax: +1 (212) 656 5725; website: http://www.nyse.com/

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