The New York Stock Exchange and Stock Market Indexes

The New York Stock Exchange (NYSE) is located inexchange that are bought and sold just as stock are.
New York City. It is one of the biggest stockThe price is very expensive and goes up and down
exchanges in the world and lists over 3,200along with the economy. You must have a seat in
companies. The NYSE allows buyers and sellers toorder to be able to trade stock on the NYSE.
trade stock efficiently among each other. Just as aWhen you watch the news during the financial
supermarket allows business to be conductedsegment, they often tell you how the Dow or the
between merchants and consumers, the NYSE allowsS&P 500 is doing. These are both Stock Market
stock to be sold between buyers and sellers.Indexes. The Dow is short for Dow Jones Industrial
Since January 24, 2007, the Hybrid Market hasAverage. It includes 30 large companies. The Dow is
allowed all NYSE stocks to be traded electronically,calculate by a price-weighted average. This means
whereas before all business was conducted on thethat to find the value of the index, instead of just
floor of the NYSE. The NYSE has a very specificadding up the price of each 30 stocks and dividing it
way of doing business. Stock brokers have to go toby 30, they look at is as a portfolio that holds one
the right location to buy their stock and it is run likeshare of each stock. This keeps it proportional
an auction. There are 1,366 seats available on theamong the stock.