COURSE: BUS 2203: PRINCIPLES OF FINANCE 1

TOPIC: FINANCIAL WORLD AND MONEY

INSTRUCTOR: EDDY FOTSING

In reference to the site given, NYSE (New York Stock Exchange) is a huge corporation with vast
kinds of financial ventures. According to the article, NYSE trades more than one third of the
world’s cash equity volume using all, electronic, block anonymous and hybrid trading models.
They mention 4 product offering which are Exchange Traded Products, Options, Bonds and
Equities. However, I am only going to pick 3 of the products which I am going to talk about.
The three exciting products I would love to talk about are:

 Exchange traded products

 Equities

 Bonds

i. EXCHANGE TRADED PRODUCTS

Exchange-traded products (ETP) are types of securities that track underlying security, index,
or financial instrument. ETPs are cheaper and are more preferable to mutual funds and
actively managed funds. They trade on exchanges similar to stocks. though investors may
get handsome gains from ETPs, chances of them facing high market losses are there due to
their unstable prices.

A good example of ETPs are Exchange Traded Notes (ETNs). These may be defined as a
security of securities that trade on an exchange, just like a stock. Unlike mutual funds, the
have a diverse investment capability.

ii. EQUITIES
Equity is defined as ownership of an asset of value. However, in the context of investing, equity may

refer to stock as ownership in a corporation.

Under the equities tab on their website, NYSE explains how they are the premier listing venue for many
large and medium sized corporations. Their cash equities are very liquid which means they can be

converting into usable tender quickly. Their operations are all electronic which means they are safe and

anonymous and they are the top in trading platforms for ETFs (exchange-traded funds).

iii. OPTIONS

NYSE has a varied amount of options, one of them being equity options where people come to them for

help regarding shares or investments in companies. The options include ‘NYSE Amex Short Term’ or

‘NYSE Arca Short Term’. They also have generalized data regarding agreement terms and contract

information on their website. There are also different index options available to investors so they can

buy/sell or trade whole markets in order to sustain the price or earn a profit. There are different

categories for people interested in Amex or Arca but only a few companies are listed as an option. Also

available are ETFs (exchange traded funds) which are funds or trust that are traded during the duration

of a single day. NYSE also provides Equity FLEX and LEAP programs in their options. FLEX is primarily a

customized or tailored contract which investors can enjoy with ease and LEAP is a long-term contract

deal which lets investors view the up and down fluctuation of a stock without actually committing to it.

Binary Return Derivatives are also available which boast a per-contract fixed return rate of $100. They

are offered in two formats which are Finish High and Finish Low.

In conclusion I think NYSE is doing great especially in trying to up the economy and this could be great if

other developing countries could embrace such ways.

Information Retrieved from:

 www.nyse.com

https://www.investopedia.com/contributors/101529/

https://www.investopedia.com/contributors/101529/
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