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.
Up until January 2007, stocks were bought and sold on the floor of the NYSE. Now, the Hybrid Market has allowed stocks to be easily bought and sold electronically. The NYSE is efficiently run and set up specifically. All stock brokers must know where to go when they are ready to trade stock.
In order to trade on the floor, stock brokers must hold one of the 1,366 seats available. These seats are bought and sold similar to stocks. The price goes up and down just like stocks do and are generally very expensive.
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 Dow is calculated 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.
If you don't understand the NYSE and how it works, you'll have trouble when buying and selling stock. Understanding the indexes will also help you when you're doing research. Use them to your advantage. - 15790
Up until January 2007, stocks were bought and sold on the floor of the NYSE. Now, the Hybrid Market has allowed stocks to be easily bought and sold electronically. The NYSE is efficiently run and set up specifically. All stock brokers must know where to go when they are ready to trade stock.
In order to trade on the floor, stock brokers must hold one of the 1,366 seats available. These seats are bought and sold similar to stocks. The price goes up and down just like stocks do and are generally very expensive.
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 Dow is calculated 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.
If you don't understand the NYSE and how it works, you'll have trouble when buying and selling stock. Understanding the indexes will also help you when you're doing research. Use them to your advantage. - 15790
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How does the stock market work? Learn about the stock market and find out how to buy stocks before you purchase in order to get the best your return.