New York Stock Exchange: Trying to Understand
When we see movies about the stock exchange brokers, all those operations with money, men in suits and emotional rivals over buying and selling seem like a mystery. But how does it all really work? Well, to get to the point we need to start in the beginning.
Stock exchange is a place where stock brokers and traders can buy or sell securities, such as stocks, bonds, and others. Securities themselves are tradable financial assets. This means that securities are papers proving financial liability towards the owner of the security.
How trading is made
The New York Stock Exchange is located at 11 Wall Street, Lower Manhattan, New York City. Not everyone is allowed to take part in the trade. First, you need to pay between 500000 and 1000000 USD just to get a seat, but then, you also have to be selected among others. Traders here can trade for themselves or on behalf of investors.
If you want to sell or buy, you place a trade order, then that order goes to a person on the trading floor, that person has to find someone to match the deal, for instance, sell what you want to buy, and then, you get a message about the fact that the deal is completed.
Trading floor or trading room is a place where traders operate financial markets.
Opening and closing bells are the signals to start and stop the trading operations. They run between 9-30 a.m. and 4 p.m. ET. The New York Stock Exchange has a person controlling the traffic. In this stock exchange, it is made to help sellers and buyers match.
Rules of the stock exchange
The institution has its body of rules aimed at creating a secure environment for trading. It touches different sides of the trading procedure.
The companies listed in this stock exchange are often leaders in the world market. They can be either old companies that have been present on the market for years or new capitals. They are part of the trading process. In 2008, the rules were changed in order to maintain transparency and ethical rules of the stock exchange.
It is necessary for every investor to read more about the rules and regulations of the stock trading. Please, see the full rules and consult reliable experts before you trade. Your wealth has to be protected.