The Wall Street Stock Exchange is description for the New York
Stock Exchange. Second in the world only to the NASDAQ, the New
York Stock Exchange, or the NYSE lives on the corner of Broad Street
and Wall Street in New York City. While this exchange is a mainly
physical one, which will be expressed later on in this article, the
exchanged formed a marriage with Archipelago, an electronic stock
exchange. But how exactly does the Wall Street Stock Exchange
work, what is its history and what is the future of this second largest
exchange in the world? Read more to find out!
The Structure of the NYSE
According to the New York Stock Exchange, there are two types of
“members” on what is called the Trading Floor. The floor broker
works for a client and buys and sells stocks for him or her.
House Brokers and Independent Brokers are the two kinds of floor
brokers found on the Trading Floor.
House Brokers work on behalf of “large, diversified
broker-dealers.” According to the New York Stock Exchange, these
broker dealers have been called ‘investment houses’ or ‘banking
houses.’ How does it work? The house broker works for the
firms’ customers or on their firm’s account.
Independent Brokers work only for the “large brokerage houses,”
according to the New York Stock Exchange. The NYSE considers
independent brokers ‘agent entrepreneurs’ which do business for the
public and receive income from commissions.
Types of Companies Involved
There are several different types of companies that are part of the New
York Stock Exchange. They can be divided into the following
industries as classified by the NYSE: Oil and Gas, Basic
Materials, Industrials, Consumer Goods, Health Care, Consumer Services,
Telecommunications, Utilities, Financials, and finally
Technology. Each of these is divided into sectors and
sub-sectors.
The Oil and Gas industry, for example, has several sub-sectors in under
it. These include exploration and production companies such as
the Goodrich Petroleum Corporation. The next is integrated oil
and gas, with companies such as the Exxon Mobile Corporation and the
Chevron Corporation.
The next sub-sector is the oil equipment and services such as Baker
Hughes Inc. Finally there are pipelines to be considered, and
this is the last sub-sector. Companies included are the Atlas
Pipeline Partners, and the El Paso Corporation.
A Brief History
According to the NYSE, the origins of the NYSE began in 1792. The
most significant event in history of the Exchange was Black Tuesday,
which set off the Great Depression.
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