NYSE (New York Stock Exchange) the major among the stock exchanges around the world. The largest and oldest stock market situated in United States of America. The NYSE plays an important role in the stock market of the whole world. The stock prices of NYSE are determined by the auctions. The NYSE, known as the Big Board, was established in 1792.
It is a physical exchange and according the records of the dollar volume, it’s the largest in the world and in terms of the listed securities, it is the second largest stock exchange of the world. There are more than 2,700 securities listed in the NYSE.
In New York Stock Exchange, the stock exchange prices are determined through the process of auction. The whole process of auction is controlled by the group of specialists. These specialists are responsible for the pace of the market. These people create and control the demand for a particular stock in the market.
The specialists of the New York Stock Exchange pair the stocks with the best possible prices. This particular process also ensures that the investor would get the best available price for the purpose of trading.
It’s not that simple as it seems to be. If the order seems unbalanced, then these specialists must get the market back in the track. It may be selling or buying the stock against the market out of the company’s own account to achieve the balance.
Now a day the specialists don’t set the stock price, the other auctioneer does. But they can adjust the opening price before the opening of the market and halt the trading under extreme circumstances.
If you know these things, i.e. how the prices are set in the NYSE then you can determine the best price for you to invest. There are no such lists as best price to buy stocks in NYSE because the whole stock markets are running in the terms of predication. So you have to predict the market further progress whether it will increase or decrease by studying the history of the company’s past stock charts. The whole investing depends upon your study about the history of the particular stock.
The specialist on the NYSE is only responsible for matching the best prices for a particular stock. This auction method assures investors that they can buy and sell at the best price available at that particular moment.
David is a professional stock broker and consultant. He blog about Stock exchange market new idea tips and tricks to get the financial freedom