Big Board
Big Board is a popular term used to refer to the New York Stock Exchange (NYSE). The NYSE is the largest stock exchange in the world by market capitalization and a cornerstone of global financial markets. The term “Big Board” is synonymous with its large, interconnected pricing displays that provide live trading data.
Examples
- NYSE Listed Companies: Major companies such as Apple, Microsoft, and IBM are listed on the NYSE.
- Market Open and Close Ceremonies: Famous ringing of the opening and closing bells conducted by notable figures and companies.
- Trading Floor: The bustling trading floor, where brokers and traders make quick decisions, often shown in financial news coverage.
Frequently Asked Questions (FAQs)
Q1: What is the historical significance of the NYSE?
A1: The NYSE was established in 1792 under the Buttonwood Agreement. Over the years, it has become the largest and most significant stock exchange globally.
Q2: How does the NYSE differ from other stock exchanges?
A2: The NYSE is unique due to its physical trading floor located at 11 Wall Street, New York City, whereas many other exchanges are purely electronic.
Q3: What types of securities are traded on the NYSE?
A3: Equities, bonds, ETFs, and other financial instruments can be traded on the NYSE.
Q4: Can individual investors trade directly on the NYSE?
A4: Individual investors typically use brokerage firms to execute trades on the NYSE rather than trading directly.
Q5: What are the trading hours of the NYSE?
A5: The NYSE has regular trading hours from 9:30 AM to 4:00 PM ET, Monday through Friday.
- Securities Exchange: A marketplace where securities are bought and sold.
- NASDAQ: The second-largest stock exchange in the U.S., known for its electronic trading platform.
- Dow Jones Industrial Average (DJIA): A stock market index that shows the price weighted average of 30 significant stocks traded on the NYSE and NASDAQ.
- Initial Public Offering (IPO): When a company first sells its shares to the public on the stock exchange.
Online References
Suggested Books for Further Studies
- “The New York Stock Exchange: A Pictorial History” by Robert Sobel
- “The Little Book That Still Beats the Market” by Joel Greenblatt
- “Reminiscences of a Stock Operator” by Edwin Lefèvre
Fundamentals of Big Board: Financial Markets Basics Quiz
### What is the colloquial term for the New York Stock Exchange?
- [x] Big Board
- [ ] NASDAQ
- [ ] AMEX
- [ ] S&P 500
> **Explanation:** The New York Stock Exchange is popularly known as the Big Board due to its iconic large, multi-story price displays.
### When was the New York Stock Exchange established?
- [ ] 1801
- [x] 1792
- [ ] 1837
- [ ] 1920
> **Explanation:** The NYSE was established in 1792 under the Buttonwood Agreement where 24 stockbrokers and merchants signed the agreement to trade securities.
### Where is the NYSE located?
- [ ] Chicago
- [ ] Los Angeles
- [x] New York City
- [ ] Washington D.C.
> **Explanation:** The NYSE is physically located at 11 Wall Street, New York City, making it a central hub of global finance.
### What is the primary function of the NYSE?
- [ ] Setting interest rates
- [ ] Issuing bonds
- [ ] Distributing dividends
- [x] Facilitating the buying and selling of public company shares
> **Explanation:** The NYSE serves as a platform for the buying and selling of shares in public companies, making it a vital part of global financial markets.
### What notable event happens daily at the NYSE to signify the opening of the markets?
- [ ] Lowering of the flag
- [x] Ringing of the opening bell
- [ ] Raising of the flag
- [ ] Launch of fireworks
> **Explanation:** The ringing of the opening bell is a traditional ceremony that signifies the start of the trading day at the NYSE.
### Can individual investors execute trades directly on the NYSE floor?
- [ ] Yes
- [x] No
- [ ] Only during certain hours
- [ ] Only for high-value transactions
> **Explanation:** Individual investors typically execute trades through brokerage firms and not directly on the trading floor of the NYSE.
### What are the usual trading hours of the NYSE?
- [ ] 8:00 AM to 4:00 PM ET
- [ ] 9:00 AM to 4:00 PM ET
- [x] 9:30 AM to 4:00 PM ET
- [ ] 10:00 AM to 5:00 PM ET
> **Explanation:** The regular trading hours for the NYSE are from 9:30 AM to 4:00 PM ET, Monday through Friday.
### What is the difference between NYSE and NASDAQ?
- [x] NYSE has a physical trading floor, NASDAQ does not
- [ ] NASDAQ is older than NYSE
- [ ] NYSE trades only electronic stocks
- [ ] NASDAQ has no listed companies
> **Explanation:** One of the major differences is that the NYSE has a physical trading floor, whereas the NASDAQ operates exclusively as an electronic exchange.
### Which major stock index includes companies listed on the NYSE?
- [x] Dow Jones Industrial Average (DJIA)
- [ ] NASDAQ Composite
- [ ] London FTSE
- [ ] Tokyo Nikkei
> **Explanation:** The Dow Jones Industrial Average is a major stock index that includes major companies listed on the NYSE.
### What significant document led to the establishment of the NYSE?
- [ ] The Federal Reserve Act
- [ ] The Wall Street Treaty
- [x] The Buttonwood Agreement
- [ ] The Merchant's Constitution
> **Explanation:** The Buttonwood Agreement, signed in 1792 by 24 stockbrokers and merchants, led to the establishment of the NYSE.
Thank you for diving into the foundational knowledge behind the Big Board and challenging yourself with our quiz. Continue to enhance your understanding of financial markets and institutions!
