The New York Stock Exchange Essay

The New York Stock Exchange Essay

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According to Investopedia (2003), the New York Stock Exchange, otherwise known as NYSE, is a stock exchange based in New York City. It is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities. Additionally, it stated that NYSE was founded in 1972 but became a public entity in 2005 after the acquisition of electronic trading exchange Archipelago. The NYSE Euronext is the parent company of the New York Stock Exchange. This came into play when the company merged with the European exchange in 2007. On the other hand, Investopedia (2003) stated that the American Stock Exchange, popularly known as AMEX, is the third largest stock exchange by trading volume in the United States. Similar to the NYSE, it is situated in New York City and deals with approximately 10% of all securities in the U.S. Furthermore, in 2009, AMEX became NYSE Amex Equities after being acquired by NYSE Euronext in 2008 (Investopedia, 2003).
New York Stock Exchange guarantees that there is order in the market for trading of securities. Companies listed on the NYSE are perceived to be more well-established than others. Stocks, bonds and mutual funds are all traded on the NYSE. This exchange offers electronic trading products and order-execution product. As it relates to American Stock Exchange, it serves as a market for equities, exchange-traded funds and other financial instruments. In order for an investor to buy or sell a security listed on AMEX, that person will be required to call a broker. As opposed to NYSE, the AMEX is known for having more liberal listing requirements. Consequently, the AMEX is often used by smaller issuers.
The term “Bull Market” and “Bear Market” are the terminol...


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...uld have the ability to expand operations, thus hiring new workers and update systems and the organization. When this happens, the economic long term fundamentals will show signs of growth. An increase in the GDP and circulation of money does not necessarily mean the economy will grow. Even though it is seen as benefit of the bull market, there may not be enough increase in the GDP or money circulation to decide that the economy is growing. For example, GDP may increase by 2% in the next quarter; however, employment rate may increase by a mere 1%, thus not signifying economic advances. It is these minor factors which make it difficult to say a bull market will automatically result in growth for the economy. Furthermore, an rise in productivity and more consumer goods being present may result in an economic growth. However, it will still not signify an stable economy.

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