The New York Stock Exchange (NYSE) is located in New York City. It is one of the biggest stock exchanges in the world and lists over 3,200 companies. The NYSE allows buyers and sellers to trade stock efficiently among each other. Just as a supermarket allows business to be conducted between merchants and consumers, the NYSE allows stock to be sold between buyers and sellers.

Since January 24, 2007, the Hybrid Market has allowed all NYSE stocks to be traded electronically, whereas before all business was conducted on the floor of the NYSE. The NYSE has a very specific way of doing business. Stock brokers have to go to the right location to buy their stock and it is run like an auction. There are 1,366 seats available on the exchange that are bought and sold just as stock are. The price is very expensive and goes up and down along with the economy. You must have a seat in order to be able to trade stock on the NYSE.

When you watch the news during the financial segment, they often tell you how the Dow or the S&P 500 is doing. These are both Stock Market Indexes. The Dow is short for Dow Jones Industrial Average. It includes 30 large companies. The Dow is calculate by a price-weighted average. This means that to find the value of the index, instead of just adding up the price of each 30 stocks and dividing it by 30, they look at is as a portfolio that holds one share of each stock. This keeps it proportional among the stock.



The S&P 500 is short for Standard & Poor’s Composite 500. This index is better than the Dow because it includes 500 stocks and is a market value-weighted index. This means that the value is calculated based on the market value of the shares outstanding. For example, if one stock has stock outstanding at twice the value of another, it is weighted twice as much.

Market Value Indexes are used to see how to stock market is doing. By looking at how the Dow did last year compared to how it’s doing now, we can see relatively how well the market is doing. The same goes for the S&P 500 any other indexes.

The NYSE and market indexes have been around for a while and work well. Understanding the basics behind these instruments and understanding how to use the information they give can help you become a better investor. Use them wisely.

Author: Samantha Asher
Article Source: EzineArticles.com
Provided by: How Electric Pressure Cookers Work



Shared Post