Editing New York Stock Exchange (section)

==History==
{{see also|List of presidents of the New York Stock Exchange}}
[[File:New York Stock Exchange 1882.jpg|left|thumb|upright=0.8|The Stock Exchange at 10–12 Broad Street, 1882]]

The earliest recorded organization of [[Security (finance)|securities]] trading in New York among [[broker]]s directly dealing with each other can be traced to the [[Buttonwood Agreement]]. Previously, securities exchange had been intermediated by the [[auction]]eers, who also conducted more mundane auctions of [[Commodity|commodities]] such as wheat and tobacco.<ref name="National Park Service">{{Cite web |title=National Register of Historic Places Inventory – Nomination Form, 11 Wall Street |url=https://npgallery.nps.gov/NRHP/GetAsset/NHLS/78001877_text |access-date=August 10, 2014 |publisher=National Park Service |archive-date=August 29, 2019 |archive-url=https://web.archive.org/web/20190829073513/https://npgallery.nps.gov/NRHP/GetAsset/NHLS/78001877_text |url-status=live}} <span style="font-color=" blue">OCRed document unreable</span></ref> On May 17, 1792, twenty-four brokers signed the Buttonwood Agreement, which set a floor commission rate charged to clients and bound the signers to give preference to the other signers in securities sales. The earliest securities traded were mostly governmental securities such as War Bonds from the Revolutionary War and [[First Bank of the United States]] stock,<ref name="National Park Service"/> although [[Bank of New York]] stock was a non-governmental security traded in the early days.<ref>{{Cite web |last=FCC |title=Financial consulting company – New York Stock Exchange |url=https://www.makedigitalincome.com/invest-in-stocks-for-beginners |access-date=June 15, 2017 |website=financial-consulting.pro |language=en-gb |archive-date=January 11, 2023 |archive-url=https://web.archive.org/web/20230111193336/https://www.makedigitalincome.com/invest-in-stocks-for-beginners/ |url-status=dead }}</ref> The [[Bank of North America]], along with the First Bank of the United States and the Bank of New York, were the first shares traded on the New York Stock Exchange.<ref>{{Cite book |last=Pound |first=Richard W. |title=Fitzhenry and Whiteside Book of Canadian Facts and Dates |publisher=Fitzhenry and Whiteside |year=2005 |pages=188}}</ref>

In 1817, the stockbrokers of New York, operating under the [[Buttonwood Agreement]], instituted new reforms and reorganized. After sending a delegation to [[Philadelphia]] to observe the organization of their board of brokers, restrictions on manipulative trading were adopted, as well as formal organs of governance.<ref name="National Park Service"/> After re-forming as the New York Stock and Exchange Board, the broker organization began renting out space exclusively for securities trading, which previously had been taking place at the [[Tontine Coffee House]]. Several locations were used between 1817 and 1865, when the present location was adopted.<ref name="National Park Service"/>

The invention of the [[electrical telegraph]] consolidated markets and New York's market rose to dominance over Philadelphia after weathering some market panics better than other alternatives.<ref name="National Park Service"/> The [[Open Board of Stock Brokers]] was established in 1864 as a competitor to the NYSE. With 354 members, the Open Board of Stock Brokers rivaled the NYSE in membership (which had 533) "because it used a more modern, continuous trading system superior to the NYSE's twice-daily call sessions". The Open Board of Stock Brokers merged with the NYSE in 1869. Robert Wright of ''Bloomberg'' writes that the merger increased the NYSE's members as well as trading volume, as "several dozen regional exchanges were also competing with the NYSE for customers. Buyers, sellers and dealers all wanted to complete transactions as quickly and cheaply as technologically possible and that meant finding the markets with the most trading, or the greatest liquidity in today's parlance. Minimizing competition was essential to keep a large number of orders flowing, and the merger helped the NYSE maintain its reputation for providing superior liquidity."<ref name="bloomberg-nyse">{{Cite news |last=E. Wright |first=Robert |date=January 8, 2013 |title=The NYSE's Long History of Mergers and Rivalries |work=[[Bloomberg News|Bloomberg]] |url=https://www.bloomberg.com/view/articles/2013-01-08/nyse-s-long-history-of-mergers-and-rivalries |url-status=live |access-date=April 10, 2017 |archive-url=https://web.archive.org/web/20170411054557/https://www.bloomberg.com/view/articles/2013-01-08/nyse-s-long-history-of-mergers-and-rivalries |archive-date=April 11, 2017}}</ref> The [[American Civil War|Civil War]] greatly stimulated speculative securities trading in New York. By 1869, membership had to be capped, and has been sporadically increased since. The latter half of the nineteenth century saw rapid growth in securities trading.<ref>{{Cite web |title=NYSEData.com Factbook: Chronology of New York Stock Exchange (1792–1929) |url=http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=table&key=2169&category=4 |url-status=dead |archive-url=https://web.archive.org/web/20160513110558/http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=table&key=2169&category=4 |archive-date=May 13, 2016 |access-date=June 15, 2017 |website=www.nyxdata.com}}</ref>

Securities trade in the latter nineteenth and early twentieth centuries was prone to panics and crashes. Government regulation of securities trading was eventually seen as necessary, with arguably the most dramatic changes occurring in the 1930s after a [[Wall Street crash of 1929|major stock market crash]] occurred near the beginning of the [[Great Depression in the United States|Great Depression]]. The NYSE has also imposed additional rules in response to shareholder protection controls, e.g. in 2012, the NYSE imposed rules restricting brokers from voting uninstructed shares.<ref>{{Cite journal |last=Hirst |first=Scott |date=January 1, 2017 |title=Frozen Charters |url=https://scholarship.law.bu.edu/faculty_scholarship/341 |journal=The Harvard Law School Program on Corporate Governance Discussion Paper |volume=2016-01 |access-date=November 1, 2020 |archive-date=November 6, 2020 |archive-url=https://web.archive.org/web/20201106131055/https://scholarship.law.bu.edu/faculty_scholarship/341/ |url-status=live}}</ref>'''{{rp|2}}'''

The [[Stock Exchange Luncheon Club]] was situated on the seventh floor from 1898 until its closure in 2006.<ref name="New York Times">{{Cite news |last=Edmonston |first=Peter |date=April 28, 2006 |title=Where Wall Street Meets to Eat, the Last Lunch |work=[[The New York Times]] |url=https://www.nytimes.com/2006/04/28/business/28lunch.html?_r=1 |url-status=live |access-date=January 29, 2009 |archive-url=https://web.archive.org/web/20120413075355/http://www.nytimes.com/2006/04/28/business/28lunch.html?_r=1 |archive-date=April 13, 2012}}</ref>

[[File:Stockexchange.jpg|left|thumb|The floor of the New York Stock Exchange in 1908]]
On April 21, 2005, the NYSE announced its plans to merge with [[NYSE Arca|Archipelago]] in a deal intended to reorganize the NYSE as a publicly traded company. NYSE's governing board voted to merge with rival Archipelago on December 6, 2005, and became a for-profit, public company. It began trading under the name NYSE Group on March 8, 2006. On April 4, 2007, the NYSE Group completed its merger with Euronext, the European combined stock market, thus forming [[NYSE Euronext]], the first transatlantic stock exchange.

[[Wall Street]] is the leading U.S. money center for international financial activities and the foremost U.S. location for the conduct of wholesale financial services. "It comprises a matrix of wholesale financial sectors, financial markets, financial institutions, and financial industry firms" (Robert, 2002). The principal sectors are securities industry, commercial banking, asset management, and insurance.

Prior to the acquisition of NYSE Euronext by the ICE in 2013, Marsh Carter was the Chairman of the NYSE and the CEO was [[Duncan Niederauer]]. Currently,{{when|date=February 2016}} the chairman is Jeffrey Sprecher.<ref>{{Cite web |title=Intercontinental Exchange – Board of Directors |url=http://ir.theice.com/corporate-governance/board-of-directors.aspx |url-status=dead |archive-url=https://web.archive.org/web/20150708121132/http://ir.theice.com/corporate-governance/board-of-directors.aspx |archive-date=July 8, 2015 |access-date=June 20, 2015 }}</ref> In 2016, NYSE owner Intercontinental Exchange Inc. earned $419 million in listings-related revenues.<ref name="wsj-new">{{Cite news |last=Osipovich |first=Alexander |date=October 26, 2017 |title=Startup Exchange Cleared to Take on NYSE, Nasdaq for Stock Listings |work=[[The Wall Street Journal]] |location=New York City, United States |url=https://www.wsj.com/articles/startup-exchange-cleared-to-take-on-nyse-nasdaq-for-stock-listings-1509010200 |url-status=live |access-date=October 26, 2017 |archive-url=https://web.archive.org/web/20171026100518/https://www.wsj.com/articles/startup-exchange-cleared-to-take-on-nyse-nasdaq-for-stock-listings-1509010200 |archive-date=October 26, 2017}}</ref>

From its opening until August 2000, all stock prices on the New York Stock Exchange were quoted in [[Fraction|fractional]] increments of eighths, based on the 17th century Spanish trading system's practice of using [[pieces of eight]]. On August 28, 2000, some stocks were quoted in decimals, and all NYSE stocks were [[decimalized]] by the end of 2001. <ref>{{Cite web |title=On This Day in 2000: NYSE Starts Pricing Stocks in Decimals |url=https://www.wsj.com/livecoverage/nvidia-earnings-stock-market-today-08-28-2024/card/on-this-day-in-2000-nyse-starts-pricing-stocks-in-decimals-WaVbwORfMHEIyvs4Z6nI |access-date=2025-04-21 |website=WSJ |language=en-US}}</ref>

===Notable events===
{{See also|Panic of 1873|Panic of 1893|Wall Street Crash of 1929|Black Monday (1987)|Friday the 13th mini-crash|October 27, 1997 mini-crash|Economic effects arising from the September 11 attacks}}

====20th century====
The exchange was closed shortly after the beginning of World War I (July 31, 1914), but it partially re-opened on November 28 of that year in order to help the war effort by trading [[Bond (finance)|bonds]],<ref>{{Cite news |date=December 7, 1914 |title=The exchange opens |work=[[The Independent]] |url=https://archive.org/stream/independen79v80newy#page/384/mode/1up |url-status=live |access-date=July 24, 2012 |archive-url=https://web.archive.org/web/20121230183553/https://archive.org/stream/independen79v80newy#page/384/mode/1up |archive-date=December 30, 2012}}</ref> and completely reopened for stock trading on December 12, 1914.

On September 16, 1920, the [[Wall Street bombing]] occurred outside the building, killing forty people and injuring hundreds more.<ref>{{cite book |last1=Baily |first1=Thomas A |url=https://archive.org/details/americanpageant000bail |title=The American Pageant |edition=10th |last2=Kennedy |first2=David M. |publisher=D.C. Heath and Company |year=1994 |isbn=0-669-33892-3}}</ref><ref name="barron">{{Cite news |last=Barron |first=James |date=September 17, 2003 |title=After 1920 Blast, The Opposite Of 'Never Forget'; No Memorials on Wall St. For Attack That Killed 30 |language=en-US |work=The New York Times |url=https://www.nytimes.com/2003/09/17/nyregion/after-1920-blast-opposite-never-forget-no-memorials-wall-st-for-attack-that.html |access-date=September 16, 2020 |issn=0362-4331 |archive-date=March 22, 2016 |archive-url=https://web.archive.org/web/20160322043058/http://www.nytimes.com/2003/09/17/nyregion/after-1920-blast-opposite-never-forget-no-memorials-wall-st-for-attack-that.html |url-status=live}}</ref><ref name="wsj19200917">{{Cite news |last= |first= |date=September 17, 1920 |title=Terrific Explosion Outside Morgan's Office |pages=3 |work=[[The Wall Street Journal]] |via=newspapers.com {{open access}} |url=https://www.newspapers.com/clip/69472018/terrific-explosion-outside-morgans/ |access-date=February 6, 2021 |issn=0099-9660 |archive-date=August 13, 2021 |archive-url=https://web.archive.org/web/20210813150324/https://www.newspapers.com/clip/69472018/terrific-explosion-outside-morgans/ |url-status=live}}</ref>

The [[Wall Street Crash of 1929|Black Thursday]] crash of the Exchange on October 24, 1929, and the sell-off panic which started on [[Wall Street Crash of 1929|Black Tuesday]], October 29, are often blamed for precipitating the [[Great Depression]]. In an effort to restore investor confidence, the Exchange unveiled a fifteen-point program aimed to upgrade protection for the investing public on October 31, 1938.

On October 1, 1934, the exchange was registered as a national securities exchange with the [[U.S. Securities and Exchange Commission]], with a president and a thirty-three-member board. On February 18, 1971, the non-profit corporation was formed, and the number of board members was reduced to twenty-five.

[[File:NY stock exchange traders floor LC-U9-10548-6.jpg|thumb|NYSE [[trader (finance)|traders]] floor before the introduction of electronic readouts and computer screens, 1963]]

One of [[Abbie Hoffman]]'s well-known publicity stunts took place <!-- on August 24 (this exact date may help find a ref, but is otherwise pointless) --> in 1967, when he led members of the [[Yippie]] movement to the Exchange's gallery. The provocateurs hurled fistfuls of dollars toward the trading floor below. Some traders booed, and some laughed and waved. Three months later the stock exchange enclosed the gallery with bulletproof glass.<ref>{{Cite news |last=Ledbetter |first=James |date=August 23, 2007 |title=The day the NYSE went Yippie |publisher=CNN |url=https://money.cnn.com/2007/07/17/news/funny/abbie_hoffman/ |url-status=live |access-date=July 9, 2015 |archive-url=https://web.archive.org/web/20150711120623/http://money.cnn.com/2007/07/17/news/funny/abbie_hoffman/ |archive-date=July 11, 2015}}</ref> Hoffman wrote a decade later, "We didn't call the press; at that time we really had no notion of anything called a media event."<ref>Abbie Hoffman, [https://archive.org/details/soontobemajormot00hoff <!-- quote=media event. --> ''Soon to be a Major Motion Picture'', p. 100, Putnam, 1980.] {{Webarchive |url=https://web.archive.org/web/20160506083247/https://books.google.com/books?ei=FBBeTPa1NcP6lwf-xtyZCA&ct=result&id=OpLaAAAAMAAJ&dq=Soon+to+be+a+Major+Motion+Picture&q=media+event |date=May 6, 2016}}</ref>

[[File:President Ronald Reagan addressing the New York Stock Exchange.jpg|thumb|President [[Ronald Reagan]] addressing the NYSE, 1985]]

On October 19, 1987, the [[Dow Jones Industrial Average]] (DJIA) dropped 508 points, a 22.6% loss in a single day, the second-biggest one-day drop the exchange had experienced. [[Black Monday (1987)|Black Monday]] was followed by Terrible Tuesday, a day in which the Exchange's systems did not perform well and some people had difficulty completing their trades.<ref>{{Cite news |title=Terrible Tuesday: How the Stock Market Almost Disintegrated A Day After the Crash |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/SB10000872396390443684104578064512937107562 |access-date=May 15, 2020|author-first1=James B. |author-last1=Stewart|author-first2=Daniel|author-last2=Hertzberg|date=18 October 2012}}</ref>

Subsequently, there was another major drop for the Dow on October 13, 1989—the [[Friday the 13th mini-crash|Mini-Crash of 1989]]. The crash was apparently caused by a reaction to a news story of a $6.75&nbsp;billion leveraged buyout deal for UAL Corporation, the parent company of [[United Airlines]], which broke down. When the UAL deal fell through, it helped trigger the collapse of the [[junk bond]] market causing the Dow to fall 190.58 points, or 6.91 percent.

Similarly, there was a panic in the financial world during the year of 1997; the [[Asian Financial Crisis]]. Like the fall of many foreign markets, the Dow suffered a 7.18% drop in value (554.26 points) on October 27, 1997, in what later became known as the [[October 27, 1997 mini-crash|1997 Mini-Crash]] but from which the DJIA recovered quickly. This was the first time that the "[[Trading curb|circuit breaker]]" rule had operated.

====21st century====
On January 26, 2000, an altercation during filming of the music video for [[Rage Against the Machine]]'s "[[Sleep Now in the Fire]]", directed by [[Michael Moore]], caused the doors of the exchange to be closed and the band to be escorted from the site by security<ref name="greenleft">{{Cite web |date=March 15, 2000 |title=Rage against Wall Street |url=http://www.greenleft.org.au/2000/397/24186 |url-status=dead |archive-url=https://web.archive.org/web/20071012080309/http://www.greenleft.org.au/2000/397/24186 |archive-date=October 12, 2007 |access-date=October 11, 2007 |website=[[Green Left Weekly]] #397 }}</ref> after the members attempted to gain entry into the exchange.

In the [[aftermath of the September 11 attacks]], the NYSE was closed for four trading sessions, resuming on Monday, September 17, one of the rare times the NYSE was closed for more than one session and only the third time since March 1933. On the first day, the NYSE suffered a 7.1% drop in value (684 points); after a week, it dropped by 14% (1,370 points). An estimated $1.4 trillion was lost within five days of trading.<ref>{{Cite news |last=Davis |first=Marc |date=September 2, 2011 |title=How September 11 Affected The U.S. Stock Market |language=en-US |work=Investopedia |url=http://www.investopedia.com/financial-edge/0911/how-september-11-affected-the-u.s.-stock-market.aspx |url-status=live |access-date=November 17, 2016 |archive-url=https://web.archive.org/web/20161116160521/http://www.investopedia.com/financial-edge/0911/how-september-11-affected-the-u.s.-stock-market.aspx |archive-date=November 16, 2016}}</ref> The NYSE was only 5 blocks from [[World Trade Center site|Ground Zero]]. The same day it was announced that the exchange and the New York Stock Exchange building would be closed to the general public. A practice that continues to the present day.<ref>{{Cite news |last=Kassel |first=Matthew |date=2016-08-08 |title=Once-Popular NYSE Has No Plan to Reopen to the Public |url=https://www.wsj.com/articles/once-popular-nyse-has-no-plan-to-reopen-to-the-public-1470621840 |access-date=2025-04-08 |work=Wall Street Journal |language=en-US |issn=0099-9660}}</ref>  

On May 6, 2010, the Dow Jones Industrial Average posted its largest intraday percentage drop since the crash on October 19, 1987, with a 998-point loss later being called the [[2010 Flash Crash]] (as the drop occurred in minutes before rebounding). The SEC and CFTC published a report on the event, although it did not come to a conclusion as to the cause. The regulators found no evidence that the fall was caused by erroneous ("fat finger") orders.<ref>{{Cite web |title=SEC.gov |url=https://www.sec.gov/sec-cftc-prelimreport.pdf |url-status=live |archive-url=https://web.archive.org/web/20110715103911/http://www.sec.gov/sec-cftc-prelimreport.pdf |archive-date=July 15, 2011 |access-date=September 6, 2017}}</ref>

On October 29, 2012, the stock exchange was shut down for two days due to [[Hurricane Sandy]].<ref>{{Cite web |date=October 31, 2012 |title=Stock markets to open today; NYSE backup plan criticized – Business Courier |url=http://www.bizjournals.com/cincinnati/morning_call/2012/10/stock-markets-to-open-today-nyse.html |url-status=live |archive-url=https://web.archive.org/web/20130615232543/http://www.bizjournals.com/cincinnati/morning_call/2012/10/stock-markets-to-open-today-nyse.html |archive-date=June 15, 2013 |access-date=June 14, 2013 |publisher=Bizjournals.com}}</ref> The last time the stock exchange was closed due to weather for a full two days was on March 12 and 13, 1888.<ref>{{Cite news |last=Mehta |first=Nina |title=U.S. Stocks to Open After Longest Storm Outage Since 1888 |newspaper=Bloomberg.com |date=October 31, 2012 |url=https://www.bloomberg.com/news/2012-10-30/nyse-floor-is-fine-working-to-open-tomorrow-spokesman-says.html |url-status=live |archive-url=https://web.archive.org/web/20130524065229/http://www.bloomberg.com/news/2012-10-30/nyse-floor-is-fine-working-to-open-tomorrow-spokesman-says.html |archive-date=May 24, 2013 |access-date=June 14, 2013 |publisher=Bloomberg}}</ref>

On May 1, 2014, the stock exchange was fined $4.5&nbsp;million by the Securities and Exchange Commission to settle charges that it had violated market rules.<ref>{{Cite news |last=Lynch |first=Sarah N |title=New York Stock Exchange to pay $4.5&nbsp;million to settle SEC charges |url=https://www.reuters.com/article/us-nyse-sec-enforcement-idUSBREA400LA20140501 |url-status=live |archive-url=https://web.archive.org/web/20140819083211/http://www.reuters.com/article/2014/05/01/us-nyse-sec-enforcement-idUSBREA400LA20140501 |archive-date=August 19, 2014 |access-date=August 15, 2014 |work=[[Reuters]] |date=May 2014 |location=Washington |quote=The New York Stock Exchange agreed on Thursday to pay $4.5&nbsp;million to settle charges brought by U.S. securities regulators that the exchange flouted its own rules, marking the latest crackdown on violations of market structure rules.}}</ref>

On August 14, 2014, [[Berkshire Hathaway]]'s A Class shares, the highest priced shares on the NYSE, hit $200,000 a share for the first time.<ref name="BerkshireMilestone">{{Cite magazine |date=August 14, 2014 |title=Berkshire Hathaway shares top $200,000 apiece |url=https://www.forbes.com/sites/steveschaefer/2014/08/14/berkshire-shares-top-200000-buffett-worth-nearly-66b/ |magazine=[[Forbes]] |archive-url=https://web.archive.org/web/20140814183015/http://www.forbes.com/sites/steveschaefer/2014/08/14/berkshire-shares-top-200000-buffett-worth-nearly-66b/ |archive-date=August 14, 2014 |access-date=August 15, 2014 |url-status=live}}</ref>

On July 8, 2015, technical issues affected the stock exchange, halting trading at 11:32&nbsp;am ET. The NYSE reassured stock traders that the outage was "not a result of a cyber breach", and the [[Department of Homeland Security]] confirmed that there was "no sign of malicious activity".<ref>{{Cite web |last1=Gillespie |first1=Patrick |last2=Egan |first2=Matt |last3=Long |first3=Heather |title=New York Stock Exchange suspends trading |url=https://money.cnn.com/2015/07/08/investing/nyse-suspends-trading/index.html |url-status=live |archive-url=https://web.archive.org/web/20150708161938/http://money.cnn.com/2015/07/08/investing/nyse-suspends-trading/index.html |archive-date=July 8, 2015 |access-date=July 8, 2015 |website=CNN Money |date=July 8, 2015}}</ref> Trading eventually resumed at 3:10&nbsp;pm ET the same day.

On May 25, 2018, [[Stacey Cunningham]], the NYSE's chief operating officer, became the Big Board's 67th president, succeeding Thomas Farley.<ref>{{Cite news |title=New York Stock Exchange to Have First Female Leader in 226-Year History |newspaper=The Wall Street Journal |date=May 22, 2018 |url=https://www.wsj.com/articles/new-york-stock-exchange-to-have-first-female-leader-in-226-year-history-1526955129 |url-status=live |archive-url=https://web.archive.org/web/20180522130604/https://www.wsj.com/articles/new-york-stock-exchange-to-have-first-female-leader-in-226-year-history-1526955129 |archive-date=May 22, 2018 |access-date=May 22, 2018}}</ref> She is the first female leader in the exchange's 226-year history.

In March 2020, the NYSE announced plans to temporarily move to all-electronic trading on March 23, 2020, due to the [[COVID-19 pandemic in New York City|COVID-19 pandemic]].<ref>{{Cite news |title=New York Stock Exchange To Shift To All-Electronic Trading |url=https://www.npr.org/sections/coronavirus-live-updates/2020/03/18/817944424/new-york-stock-exchange-to-shift-to-all-electronic-trading |access-date=February 17, 2021 |newspaper=NPR |date=March 18, 2020 |language=en |last1=Schneider |first1=Avie}}</ref> Along with the [[Philadelphia Stock Exchange|PHLX]] and the [[Boston Stock Exchange|BSE]], the NYSE reopened on May 26, 2020.<ref>{{cite web |last=Aratani |first=Lauren |date=May 26, 2020 |title=New York Stock Exchange reopens two months after closing due to Covid-19 |url=http://www.theguardian.com/us-news/2020/may/26/nyse-reopens-two-months-closing-covid-19 |access-date=February 14, 2021 |website=the Guardian |archive-date=May 11, 2021 |archive-url=https://web.archive.org/web/20210511201015/https://www.theguardian.com/us-news/2020/may/26/nyse-reopens-two-months-closing-covid-19 |url-status=live}}</ref>