RiskPicksWhat is the NYSE?
The New York Stock Exchange is the largest stock exchange in the world by total market capitalization of its listed companies. Founded in 1792 and located on Wall Street in New York City, it remains the most recognized stock exchange globally.
How it works
- Uses a hybrid model combining electronic trading with a physical trading floor
- Each listed stock has a designated market maker (DMM) responsible for maintaining fair and orderly trading
- The DMM steps in to buy or sell from their own inventory when there is a temporary imbalance between buyers and sellers
- Most orders are matched electronically, but the floor traders and DMMs handle complex situations like the opening and closing auctions
Listing requirements
- Minimum share price of $4
- Global market capitalization of $200 million or more
- At least 400 shareholders
- Audited financial statements
- Must meet corporate governance standards including independent board members and audit committees
What trades on the NYSE
The NYSE lists roughly 2,400 companies. It is traditionally known for established, large-cap companies across all sectors: financials, healthcare, industrials, consumer goods, and energy. Companies like Berkshire Hathaway, Johnson and Johnson, Visa, and Procter and Gamble call the NYSE home.
When you see the opening bell ringing on financial news, that is the NYSE trading floor. The bell rings at 9:30 AM ET to open the market and 4:00 PM ET to close it.