New York Stock Exchange information

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New York Stock Exchange

The NYSE is located in the New York Stock Exchange building at 12 Wall Street and 18 Broad Street and is a National Historic Landmark. The former department store at 30 Broad Street closed in February 2007.

The NYSE is also owned by Intercontinental Exchange (ticker symbol ICE), a publicly traded American holding company. It was previously part of NYSE Euronext (NYX) and was merged with Euronext by NYSE in 2007. According to a 2022 Gallup poll, about 58% of American adults reported investing money in the stock market through individual stocks, mutual funds, or retirement accounts.

Stock trading in the late 19th and early 20th centuries was prone to panics and crashes. Government regulation of stock trading was eventually deemed necessary, with the most recent changes occurring in the 1930s following a major stock market crash that triggered the Great Depression. The NYSE also imposed additional rules on stock protection controls. In 2012, the NYSE enacted regulations restricting untrained stockbrokers.

The Black Thursday crash on October 24, 1929 and the panic selling that began on Black Tuesday on October 29 are often blamed for triggering the Great Depression. In an effort to restore investor confidence, the exchange developed a set of 15 proposals on October 31, 1938, aimed at protecting the public interest of investors.

On October 1, 1934, the equipment was registered as national property of the United States, and on February 18, 1971, it was incorporated as a nonprofit corporation, with a board of directors that increased to 25 members.

The NYSE trades in a continuous auction format, where dealers can execute stock trades on behalf of investors. They are centered around a proper position occupied by a professional broker (i.e., not an employee of the New York Stock Exchange) employed by a NYSE member firm as an auctioneer in a public auction market environment. Buyers and sellers together manage the actual auction. They sometimes (about 10% of the time) negotiate their own capital and facilitate traders by disseminating natural information to the public that helps bring buyers and sellers together. The auction process shifted toward automation in 1995 with the use of Heavy Duty Counting (HHC). This system allowed sellers to receive and execute orders electronically via wire transfers. On September 25, 1995, NYSE member Michael Einersen, who designed and developed the system, executed 1,000 shares of IBM stock via HHC, ending 203 years of paper trading and ushering in the era of automated trading.

Until 2005, the right to trade stock directly was limited to holders who were granted a limited number of "seats." The term comes from the fact that NYSE members would stand in line to trade until the 1870s. In 1868, the number of seats was fixed at 533, and this number increased several times over the years. In 1953, the number of seats was permanently increased to 1,366.

The signal to start and stop trading was not always a whistle. The gavel was the original symbol and is still used in conjunction with the bell. However, the target is often missed. In the late 1800s, the NYSE decided to switch to a gong to signal the start and end of the day. After the NYSE moved to its current location in 1903, the gong was changed to the bell form used today. The bell itself is manufactured by Bevin Brothers in East Hampton, Connecticut, a company known for its history of bell casting and metal toy manufacturing.

A common sight today is the well-known event of a celebrity or corporate executive standing behind the NYSE podium and pressing a button that signals the bell. Because of the importance of the opening and closing bells, many companies coordinate new product launches and other marketing events to begin on the day when a company representative rings the bell. It wasn't until 1995 that the NYSE began regularly inviting special guests. Previously, valve failures were usually caused by slippery outlets.