Presentation On New York Stock Exchange

By VIJAY MEHTA

Profile of NYSE

Location :- New York city U.S. Founded :- March 8, 1817. Owner :- NYSE Euronext CEO :- Duncan L. Niederauer Currency :- US $ No. of Listing Co. :- 2800 aprox. Market Capital :- US$ 13.39 Trillion ( Dec

2010) Website :- www.nyse.com

What’s the stock market A stock market  is a public entity for the

trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

Origin of Stock Market Back to over 200year ago U.S. decided to

finance the war by selling the bonds, and government notes promising to payout at profit at a later date.

At the same time pvt. Bank began to raise money by issuing stock or shares of the company to raise their own money.

History of NYSE

NYSE started in 1792. In start only five securities traded. In 1817, the rules & regulations was

developed. Anthony Stockholm was elected the first

president of exchange. First set trading hours were estd in 1873. Dow Jones industrial average with a starting

value of 90. Crashes over the years effect on the NYSE.

A Brief Timeline of Important Events in the History of the NYSE

1792 - Twenty-four brokers and merchants gathered on Wall Street to sign the Buttonwood Agreement. The NYSE is born!

1792 - Bank of New York becomes the first listed company on the NYSE.

1903 - April 22, the NYSE moved into 18 Broad Street. (This building is still in use today.)

1918 - The pneumatic vacuum tube system is made for sending tickets to and from different departments.

1929 - October 23: Black Thursday.October 26: Blue Monday (Market loses $26 billion in value.)

Continue:- 1953 - October 10: Trade volume on the NYSE

reaches900,000 shares, this marks the last day that the daily volume of the NYSE is under 1 million shares.

1967 - NYSE admits its first woman member. 1987 - October 19: Black Monday (Market drops

508 points, the largest one-day drop in history.) 1992 - May 17: the NYSE celebrates its 200th

anniversary. 1996 - May 7: The highest price ever paid for a

membership is $1,450,000

Major Companies 1.ExxoMobil

Corp(XOM)Market Cap: $329B

2. PetroChina (PTR)Market Cap: $237B

3. BHP Billiton(BHP)Market Cap:$222B

4.Petrobras (PBR)Market Cap:$210B

5.HSBC Holdings (HBC)Market Cap:$206B

6. Wal-Mart Stores(WMT)Market Cap:$203B

7.China Mobile (CHL)Market Cap:$191B

8. Royal Dutch Shell plc(RDS.A)Market Cap: $190B

9. BHP Billiton plc (BBL)Market Cap:$187B

10. BP Plc (BP)Market Cap: $186B

Crashes and Effects on the Market In Oct 24, 1929 was known as a “Black

Thursday” stock prices fell sharply by a volume of about 13 million shares. Five days later, October 29th, 1929, the market crashed by a volume of over 16 million shares. At the time this was the highest volume drop that was not to be matched for 39 years. This crash marked the beginning of the Great Depression.

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Reason behind the crash:-

Stocks were overpriced. Federal Reserve policies were causing disagreement

and problems. Many people had an overconfidence from the 20's

which influenced a search for easy money and made many people greedy.

Many people took their chances in the market by "buying on a margin". This means that they bought stocks on borrowed money, money they did not have. They would be making money as long as their stock price increased, but if the prices fell then they would be deep in debt.

Continue:- In Oct 19, 1987 was known as “Black

Monday” because the NYSE dropped 508 points, the largest one-day fall in history. From October 14 to October 19th of 1987 the major parts of the market dropped around 30% or more.

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Some explanations for the causes of the crash: Computer trading securities-many analysts say this is

the cause. Computers in large investing companies were programmed to order large numbers of stocks when certain market trends prevailed.

Liquidity- trading mechanisms in the stock market were unable to deal with such a large flow of sell orders.

Trade and Budget deficits-trade and budget debts during the third quarter of 1987 might have led investors into thinking that these debts would cause the crash.

Mergers

Euronext and NYSE Group:- NYSE Group bid €8 billion in cash and shares

for Euronext on May 22, 2006.

The new firm, tentatively dubbed NYSE Euronext, would be headquartered in New York City.

NYSE CEO John Thain, who would head NYSE Euronext.

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NYSE Euronext and Deutsche Börse:- The new company becoming the world's largest

stock exchange operator with a market capitalisation of listed companies equal to US$15 trillion.

President and deputy CEO of NYSE Euronext Dominique Cerutti would become the new company's president.

 Deutsche Börse shareholders will have 60% ownership of the new entity, and NYSE-Euronext shareholders will have 40%.