What is the NYSE Stock Exchange? How to open a U.S. stock trading account for securities listed on the NYSE
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The US is a country with a very active stock market. In this country, there are many different stock exchanges. Among them are the two largest and most famous stock exchanges globally, NYSE and NASDAQ. The stock exchange NYSE is the “Big Board” of the stock market. So what is the NYSE? The following article learns about the NYSE exchange and information not everyone knows about the NYSE.
What is the NYSE?
NYSE means New York Stock Exchange. The NYSE is referred to as the “Big Board,” the most valuable stock exchange in the world and the second in terms of the number of companies listed on the exchange.
NYSE is also known as the first stock exchange in the US, with a history of more than 200 years. In 1792, 24 traders signed the Buttonwood Agreement to establish the rules for buying and selling stocks and bonds.
Starting from the NYSE Exchange, only listed five companies. However, today the New York Stock Exchange has more than 2,600 listed companies, with a total value of more than 30 trillion US dollars. Most of the big, famous, and prestigious companies and enterprises worldwide choose to list their stocks on this exchange.
The NYSE also has several major indexes, which are interested and updated globally, such as the S&P500, NYSE Composite, and Dow Jones Industrial Average…
The official Website of the NYSE is: https://www.nyse.com
How does the NYSE work?
The American stock exchange NYSE also has two main functions like other common stock exchanges: Providing a market for investors to trade, buy and sell shares; Allowing companies to list shares on the exchange to raise capital from investors.
The NYSE was originally where traders went in person to make deals to buy and sell securities in person. Later, when electronic trading developed, all trading activities were done automatically, and the NYSE was the place to run the connection of buyers and sellers with the same desired trading price over time in real-time. Currently, most of the trading taking place on the NYSE is by institutional clients, mutual funds, and brokers. Retail customers conduct securities transactions through a stockbroker that helps individual investors transfer securities orders to the NYSE and process the trades.
In addition to providing a stock exchange, the NYSE is also a place that allows companies that want to sell shares to the public. Companies seeking to list shares on the NYSE need to meet the requirements of the US Securities and Exchange Commission and the specific requirements of the NYSE. Companies that are listed on the NYSE are all appreciated by investors for their reputation at launch.
Stock trading hours on the NYSE
The New York Stock Exchange (NYSE) has the same operating hours as other US stock exchanges. The NYSE is generally open on weekdays and closed on Saturdays and Sundays. Trading hours begin at 9:30 a.m. ET and end at 4 p.m. ET.
Besides, the NYSE also has several public holidays every year. The NYSE is closed for these holidays. In addition, the NYSE operates half a session on the Friday after Thanksgiving and Christmas Day (December 25) every year. During the half-day sessions, the NYSE opens at 9:30 a.m. ET and closes at 1 p.m. ET.
History and Memorable Milestones of the NYSE
The American stock exchange NYSE began to appear in 1792 when 24 stock traders signed the Buttonwood Agreement on buying and selling stocks and bonds. That agreement enabled the later American stock traders to gather on Wall Street for more frequent and extensive trading in the 1860s.
In 1817, stock traders founded the New York Stock Exchange and Exchange, which changed to the New York Stock Exchange in 1863.
The New York Stock Exchange has a global market capitalization of more than 30 trillion US dollars (in 2018) and a daily trading value of about 169 billion dollars (2013).
Membership is the purchase (since 1868) of a seat from an existing member.
Conditions for a company to be listed on the US stock exchange NYSE
Companies listed on the NYSE are highly regarded for their reputation. To be listed here, companies must meet some of the following criteria:
- The number of shareholders: 2000.
- Total income in the most recent year: $US 75 Million.
- Total pre-tax income for the last three years: $US 10 Million.
- Annual profit before tax for the previous two years:$US 2 Million. The latest year must be profitable.
- Market capitalization: $US 100 Million.
How to open a trading account for securities listed on the NYSE
To buy or sell securities listed on the NYSE, individual retail traders must open a security account through a reputable international broker. That brokerage firm allows traders to trade NYSE-listed securities through their trading platform. In today’s market, the stockbroker Capital.com is appreciated for its easy-to-use trading platform and quick and convenient account opening. The steps are as follows:
Click on the link to open a Capital.com securities trading account:
* See more: The complete guide Capital.com from a to z
Fill in your email and password information and click [Continue]. So you have successfully opened a Capital.com account.
Verify your Capital.com account:
Select Settings in the lower-left corner of the screen, select Personal Details, then fill in the required personal information:
- Fill in your address, nationality, and place of birth and click [Continue].
- The following window fills in your name (without accents) and date of birth.
- Next, fill in the residential address information: street name, building number, apartment, city, and postal code that matches the information on the documents used to verify the address (if there is no house number, apartment), household, road, fill in NA).
- Enter your phone number.
- Select the currency to use for the account.
- Read Capital.com’s terms and conditions and click [Continue].
Upload identity and address verification documents:
- Select [Upload document], click the [Upload document] box.
- Use a 2-sided photo of your passport, identity card, citizen identification card, driving license, etc., containing your full name, date of birth, and address to verify your identity and address.
- The document photograph must be clear, have all four corners, and the file must be in the format: PNG/JPG/JPEG or HEIC.
- Click [Account], select [Account status],
- Click [Take a selfie video]. Then, click [I’m ready] and follow the instructions.
Deposit to Capital.com account:
- Select [My account]. Next, click [Deposit Funds] in the right corner of the screen.
- Select deposit method, and fill in payment information and amount.
- Check the [I confirm that I am the card owner] box and click [Deposit].
- The name of the Capital.com account holder and the credit card holder must match. Capital.com’s regular account requires a minimum deposit of $20 and a maximum of $900.
How to buy a stock on the NYSE:
- Select Search in the bottom corner of the screen and enter the stock code you want to trade. Click to select the stock code you want to buy.
- Click [Buy] on the Market window.
- Fill in the volume and transaction information on the trading window
- Click [Buy] to finish.
- If opening a trade during the market closing time, click place a pending order by filling in the information and clicking Place Limit Order.
Currently, the US stock market is growing day by day. Many investors often choose US stock trading because of the safety and transparency of the market with many years of history. The NYSE is one of the prestigious US stock exchanges, the companies listed here are always appreciated for having overcome the strict conditions of the floor. Since individual traders cannot open an account directly on the NYSE, choosing a reputable but convenient broker is also of interest to many. With the suggestions of Investiki.com above, hopefully, traders can quickly start trading securities on the NYSE.
Read more: US stocks