Tech
Entertainment
U.S. & World
Tech
Entertainment
U.S. & World

What is the New York Stock Exchange?

By on March 14, 2013

What Is the New York Stock Exchange

What is the New York Stock Exchange?

When many people think of the New York Stock Exchange they picture a bunch of guys in fancy suits gathered together screaming buy this or sell that. While this type of scenario is still commonly seen today at the NYSE the reality is that most people simply don’t trade this way anymore. With the advent of the internet most trading is no longer performed physically but rather electronically. The reality is that the New York Stock Exchange is no longer just a place where people gather and trade securities but also a network of computers that connects buyers and sellers with each other. Given that trading on the New York Stock Exchange can now be done from anywhere in the world it is therefore not appropriate to think of it as a physical exchange but rather an electronic exchange.

Competition from the NASDAQ

One of the main reasons why the New York Stock Exchange decided to switch to electronic trading was due to the rise of the NASDAQ exchange during the internet revolution. The NASDAQ was the first ever exchange to allow people to trade stocks and securities without physically being in the exchange or without having to have their broker physically in the exchange placing your order. Given its use and focus on technology most tech companies are listed on the NASDAQ rather than the NYSE. The rapid rise of IPO’s during the 2000-2002 tech bubble on the NASDAQ exchange practically forced the NYSE to implement electronic trading to get in on the profits.

Historical Significance

Despite its slow adoption of new technologies the New York Stock Exchange carries a lot of history and significance. Most pictures of the stock market crash of the 1930′s that made it to the media were taken inside its trading floor. The panic seen in the faces of the traders present during the period will live on in photographs and history books. Having been built nearly 200 years ago it is clear that this exchange has more history than most.

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