New York Stock Exchange

New York Stock Exchange on Wikipedia

The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization.

The NYSE trading floor is located at the New York Stock Exchange Building on 11 Wall Street and 18 Broad Street and is a National Historic Landmark. A previous trading room, at 30 Broad Street, was closed in February 2007.

The NYSE is owned by Intercontinental Exchange, an American holding company that it also lists (ticker symbol ICE). Previously, it was part of NYSE Euronext (NYX), which was formed by the NYSE's 2007 merger with Euronext. According to a Gallup poll conducted in 2022, approximately 58% of American adults reported having money invested in the stock market, either through individual stocks, mutual funds, or retirement accounts.

Government relevance

Economy health

The performance of the NYSE often serves as a barometer for the overall health of the U.S. economy. Government policymakers, including the Federal Reserve, closely watch market indices like the Dow Jones Industrial Average, which includes many NYSE-listed companies, to gauge economic conditions.

Regulations

The U.S. Securities and Exchange Commission (SEC) oversees the NYSE to ensure fairness in the market, protect investors, maintain market integrity, and facilitate capital formation. This regulatory framework helps in maintaining investor confidence, which is crucial for economic stability.

Monetary Policy:

The Federal Reserve looks at stock market trends as part of its data when making decisions about monetary policy, like setting interest rates. A stable or growing stock market can indicate that monetary policies are supporting economic growth without causing excessive inflation.