Located in New York City, the New York Stock Exchange (NYSE), one of the largest stock exchanges in the world allows stock to be easily bought and sold. There are over 3,200 companies listed on the NYSE. Anyone, through a broker, is able to buy and sell stock efficiently between each other through the NYSE.
The Hybrid Market, which began in January of 2007, has turned everything in the NYSE electronic. Before, everything happened on the floor, but now stocks can be traded electronically. The NYSE is very efficiently set up. Stock brokers have to understand the floor well in order to know where to buy which stock.
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.
Two of the most common U.S. stock indexes are the Dow Jones Industrial Average, or the Dow for Short, and the Standard & Poor 500, or S&P 500. The Dow includes 30 large companies, and the S&P 500 includes, you guessed it, 500.
The value of the Dow is computed using a price-weighted average. This is done by adding up all the prices of each of the 30 stocks and then dividing it by 30. This keeps a proportionate number among each of the stocks. The Dow is looked at as a portfolio holding one share of each stock each at the same price (after the price-weighted computation).
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 were created to evaluate the stock market as a whole. By comparing one index from one time to another, they can see if the market has been going up or down and how quickly. You will often see these indexes being stated on financial television channels and during financial segments of the news.
If you want to succeed in the stock market, you must understand the exchanges you buy from and the indexes well. They will help you tremendously and have been proven to be effective. - 16036
The Hybrid Market, which began in January of 2007, has turned everything in the NYSE electronic. Before, everything happened on the floor, but now stocks can be traded electronically. The NYSE is very efficiently set up. Stock brokers have to understand the floor well in order to know where to buy which stock.
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.
Two of the most common U.S. stock indexes are the Dow Jones Industrial Average, or the Dow for Short, and the Standard & Poor 500, or S&P 500. The Dow includes 30 large companies, and the S&P 500 includes, you guessed it, 500.
The value of the Dow is computed using a price-weighted average. This is done by adding up all the prices of each of the 30 stocks and then dividing it by 30. This keeps a proportionate number among each of the stocks. The Dow is looked at as a portfolio holding one share of each stock each at the same price (after the price-weighted computation).
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 were created to evaluate the stock market as a whole. By comparing one index from one time to another, they can see if the market has been going up or down and how quickly. You will often see these indexes being stated on financial television channels and during financial segments of the news.
If you want to succeed in the stock market, you must understand the exchanges you buy from and the indexes well. They will help you tremendously and have been proven to be effective. - 16036
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