NYSE, NASDAQ &

LONDON STOCK
EXCHANGE

HISTORY AND GROWTH

NEW YORK STOCK EXCHANGE
 May 17, 1792 - the Buttonwood Agreement was signed
 March 8,1817 - renamed itself the "New York Stock &
Exchange Board. Anthony Stockholm was elected the
Exchange's first president.
 1863 - the New York Stock & Exchange Board changed
to its current name, the New York Stock Exchange; first
listed company on the NYSE being the Bank of New
York.
 1929 - Black Tuesday (Oct 23) and Blue Monday (Oct
26) lose investors 26 billion dollars.
 1930 - NYSE is the largest exchange holding more
foreign issues then all other US markets combined.
NYSE HISTORY cont
 Oct 1, 1934 - the NYSE registered as a
national securities exchange with the U.S.
Securities and Exchange Commission
 1943 - Trading floor opens to women.
 1986 - Black Monday (Oct 19) sees the second
largest one day percentage drop of 22.6%.
 Dec 6, 2005 – Acquired Archipelago and
become a for-profit, public company.
NYSE TODAY
 2007 - NYSE merges with Euronext creating
the first Trans-Atlantic stock exchange.
 NYSE Euronext is comprised of equities and
derivatives exchanges across the United
States and Europe which trade cash equities,
futures, options, fixed-income and exchange-
traded products.
 NYSE Composite (NYSE: NYA) is a stock
market index covering over 2000 common
stock listed on the NYSE.
NATIONAL ASSOCIATION OF SECURITIES
DEALERS AUTOMATED QUOTATIONS
 1971- NASDAQ the first electronic stock exchange in
the world, to increase the trading of OTC stocks, those
that were unable to meet listing requirements for larger
exchanges.
 Feb 8, 1971- 2,500 OTC stocks were traded on the
NASDAQ's first trading day,
 1982 -1986- division between the NASDAQ National
Market and the NASDAQ Small-Cap Market developed
 1994 - the NASDAQ beat the NYSE in annual shares
traded
 1998 - the NASDAQ merged with the American Stock
Exchange, creating the NASDAQ-AMEX Market Group.
NASDAQ TODAY
 3300 company listings; main index is the NASDAQ
Composite
 well known for being a high-tech exchange, trading
many new, high growth, and volatile stocks
 listing fees on the NASDAQ are significantly lower
than those for the NYSE
 a publicly owned company, trading its shares on its
own exchange under the ticker symbol NDAQ.
 no physical trading floor; the stock exchange built the
NASDAQ MarketSite in New York's Times Square to
create a physical presence.
IMPACT OF DOTCOM BUBBLE ON NASDAQ
NASDAQ MARKETSITE NYSE
LONDON STOCK EXCHANGE
 LSE is one of the world’s oldest stock exchange
 1698- trade in shares in London began with the need to
finance two voyages
 The trade in shares was centred around the City's two
coffee shops: Garraway's and Jonathan's. The broker,
John Castaing, published the prices of stocks and
commodities
 1761-150 of these stockbrokers started a club for buying
and selling shares in a dealing room on Sweeting's Alley,
which became known as The Stock Exchange.
 1801 - It became an official, regulated exchange, a year
later moved into a building in Chapel Court.
LSE HISTORY contd.
 closed for five months during World War I, and again for
six days during World War II.
 1972- a new office with a 23,000 sqft trading floor was
opened by Queen Elizabeth II on Threadneedle Street.
 1973- all the regional exchanges in England and Ireland
merged with the LSE
 1986 - a deregulation of the exchange, called the 'Big
Bang'
 1995- Alternative Investment Market, division between
the trading of large cap and small cap companies.
 2000- went public, listing their shares on their own
exchange in 2001.
LSE TODAY
 It lists over 3,000 companies and with 350 of the
companies coming from 50 different countries
 Main Market and the Alternative Investment Market
(AIM)- The Main Market is solely for established
companies with high performance, listing requirements
are strict. AIM trades small-caps, or new enterprises
with high growth potential
 New and growing exchange for equity derivatives
called EDX London, created in 2003.
 Chairman of the Board- Christopher Gibson-Smith
 FUTURE
 The future for these stock exchanges still
looks rather grim, post 2008.
 Historically, it would be wise to assume that
the effects of such a crisis or a bubble will
hold on for as long as it took the bubble/crisis
to build up
 This means that stabilization is not yet in
sight, although it seems that way, since many
indices are climbing lately. Nevertheless, a
recovery will take atleast a few more years.