Stock markets: NYSE and NASDAQ; the Dow Jones Average.
New York Stock Exchange (born New York Stock Exchange, NYSE) - the main U.S. stock exchange, the largest in the world. It is the symbol of financial power and the U.S. financial industry in general. At the stock exchange is determined by the world-famous Dow Jones Industrial companies (born Dow Jones Industrial Average), as well as the NYSE Composite index and the NYSE ARCA Tech 100Index.
The Exchange was founded May 17, 1792.Since 1975, became a non-profit corporation owned by its individual members in 1366 (this number is consistently since 1953). Seats can be sold, the cost of one place now reaches three million U.S. dollars.
In early March 2006 completed a merger with the NYSE electronic stock exchange Archipelago Holdings and the first time in its history offered its shares to investors, thus becoming, by a commercial organization. Trading shares of NYSE Group are carried out on the stock exchange, market capitalization as of December 5, 2007was $ 22.6 billion.
At the stock exchange transactions are made in shares and other securities. At the stock exchange listed securities of more than three thousand (2008) companies. The total market capitalization of companies traded on the NYSE, at the end of2006 amounted to $ 26.5 trillion.
The Board of Directors consists of NYSE Chairman, President and ten members of the exchange, and ten representatives of business circles.
NASDAQ (Automated quotes the National Association of Securities Dealers) - U.S. OTC market, specializing in shares of technology companies (electronics, software, etc.). One of the three major U.S. stock exchanges (along with NYSE and AMEX), is a subsidiary of NASD, controlled by the SEC. The owner of stock exchanges - US-based NASDAQ OMX Group. In addition to the NASDAQ, it also owns eight European stock exchanges.
Founded in February 8, 1971. The name comes from an automated system of obtaining quotations, which initiated the exchange. There are currently traded on the NASDAQ stock more than 3200 companies, including two Russian.
Trading Scheme
The scheme on which are traded on NASDAQ is different from the traditional stock exchange. Several market makers are competing for the execution of orders clients. The main function of a market maker in NASDAQ (as well as in the NYSE) - a continuous display of quotations and maintain the liquidity of a particular group of stocks during the trading day.
NASDAQ market:
NASDAQ National Market (NNM)
NASDAQ National Market (NNM) - the market for the most actively traded on the NASDAQ stock market's largest public companies. The market was highlighted in 1982. Now it becomes more than 4000 securities. To obtain a listing on the NASDAQ National Market company must meet the strict criteria of the financial position, capitalization and corporate governance.
NASDAQ Nasdaq Small Cap Market (SCM)
The Nasdaq Small Cap Market - NASDAQ market for the shares of small capitalization companies. In listing SCM includes over 1,000 securities.
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Dow Jones Industrial Average
Industrial Dow Jones - one of several stock market indices created by the editor of the Wall Street Journal and the founder of Dow Jones & Company, Charles Dow.
The index Dow Jones is the oldest among the existing U.S. market indices. This index was created to track the development of the industrial component of the U.S. stockmarkets.
The index comprises the 30 largest U.S. companies. The prefix "industrial" is a tribute to history - at present many of the companies included in the index, does not belong to this industry. Initially, the index was calculated as the average price for the shares covered by the companies. Time is now used to calculate the average scalable - the amount of price divided by the divisor, which changes whenever included in the index shares are being divided (split) or association (consolidation). This allows you to keep the comparability of the index to reflect changes in the internal structure of its constituent stocks.
Limitations
The peculiarity of the Dow is that it shows the average current share price, without comparing them with baseline value. Therefore, the index should be considered in relation to a certain size, taken as a basis for comparison (by a certain date).
One of the major drawbacks of the Dow-Jones is a way to calculate it - when calculating the price index of its constituent stocks are added and then divided by a correction factor. As a result, even if a company is much smaller in terms of capitalization than the other, but the cost of one of its shares higher, the stronger it affects the index. Even a large percentage change in price relatively cheap stocks can be offset by a slight change in the percentage of the price of the more expensive stocks.
Covering only 30 companies, the Dow Jones is ill-suited to the role of an index of overall activity of the stock market. For objectivity, along with the Dow Jones index is sometimes used by the S & P 500.
