Profile of Major Stock Exchanges in North America (I)

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Profile of Major Stock Exchanges in North America (I)

Legend under phoenix tree—NYSE

The then founded United States-Federal issued USD80 million of shares upon the approval of the Capitol Hill in the year 1790 to raise the fund necessary for wars. Then most of stock transactions were implemented in cafes, for there was no fixed trading place. On May 17, 1790, 24 transactors agreed to gather under a phoenix tree in Wall Street for transaction every day, and then they formulated the rules for such transaction—there is the fixed trading place from then on. As a result,NYSE, the current largest stock exchange in the world was created here.

NYSE deals with the stock transaction of 2,800 companies and of which, 458 are foreign companies, and the total market value of all such companies reaches USD20 trillion. As a traditional stock exchange with the fixed trading place, NYSE has its transaction done by means of the system of auction market and boasts the market specialist system as the unique one in North America. The appearance of market specialist is to enhance the market liquidity, to make the share price more rational and to protect investors therefore. The function of market specialist is to act as the buyer whenever there are too many selling orders whereas there is no buyer, and to act as the seller whenever there are too many buying orders whereas there is no seller, so that the market transaction is smoothed. All companies listed in NYSE will select a market specialist. Additionally, market specialist aims to get profit, not acting as “Lei Feng”. Meanwhile, market specialist is unique in US share market and its presence is legal, which is essentially different from the “banker” administering the price for profiteering in Chinese share market.

With the growth of NASDAQ, NYES has been modifying its listing rules for the sake of the listing of some new technological companies. The listing requirements of NYSE are listed in the following table. A company is just qualified for listing here if it meets such requirements, and whether it can be listed finally depends on the specific conditions as the case may be.