Trading approximately 1.46 billion
shares each day, the New York Stock Exchange (NYSE) is the leading stock
exchange in the world. The exchange trades stocks for some 2,800 companies, ranging
from blue chips to new high growth companies. Each listed company has to meet
strict requirements, as the NYSE works to maintain its reputation of trading
strong, high quality securities.
Operating as a continuous auction floor
trading stock exchange, the major players on the floor of the New York Stock
Exchange are specialists and brokers. Brokers are employed by investment firms
and trade either on behalf of their firm's clients or the firm itself. The
broker moves around the floor, bringing buy and sell orders to the specialists.
Each specialist stands in one location on the floor and deals in one or several
specific stocks, depending on their trading volume. The specialist's job is to
accept buy and sell orders from brokers and manage the actual auction. It is
also the specialist's job to ensure that there is a market for their specified
stocks at all times, meaning they will invest their own firm's capital at times
to keep the market active and maintain the shares' liquidity. Specialists and brokers
interact to create an effective system that provides investors with competitive
prices based on supply and demand.
The NYSE is controlled by its six to
twelve member Board of Directors. All Directors are independent of the trading
floor's activities, except for the CEO who is left out of certain proceedings.
This is to ensure that the regulation of the exchange is kept separate from the
exchange's operations. The Board of Directors is elected annually and in turn
elects the Board of Executives, which consists of 12 to 22 representatives from
the many member firms on the exchange. These Executives serve as advisors to
the Directors, keeping them updated on current issues on the exchange.
For more information, consult the NYSE website: