Big Board

What is the big picture?

The “Big Board” is a nickname for the New York Stock Exchange (NYSE), located at 11 Wall Street, New York, New York. The New York Stock Exchange, or Big Board, is the oldest stock exchange in the United States.

Key points to remember

  • The “Big Board” is a slang term used to refer to the New York Stock Exchange (NYSE), the oldest and best-known stock exchange in the United States.
  • The term has gained traction since the early days of trading on the NYSE, where stock quotes and trading activity were manually updated on a large chart for traders and brokers to view from the pits of negotiation.
  • Today, most NYSE transactions are conducted electronically, with price quotes and trade data available digitally and in real time.

Understanding the big picture

Big Board, also known as New York Stock Exchange (NYSE), is the world’s first and most popular stock exchange. The NYSE began in 1792 when two dozen brokers signed on Agreement on the buttonhole. The NYSE acquired its present name in 1863, and the first company listed on the stock exchange was the Bank of New York. The Big Board is the largest stock exchange in the world in terms of market capitalization of its listed shares, and two of the NYSE buildings are designated as National Historic Landmarks.

The Big Board is open for trading Monday through Friday, with regular trading session hours scheduled between 9:30 a.m. and 4:00 p.m. Eastern Standard Time (EST). The NYSE is closed on weekends and for certain holidays, as well as during catastrophic events, such as the September 11, 2001 attacks, which closed the NYSE for four years. sessions until Monday, September 17.

Stocks, bonds, mutual fund, derivatives and exchange-traded funds all trade on the Big Board. The NYSE is an auction market, which means buyers and sellers enter competitive bids at the same time, and bids and matching offers are matched and executed. Unlike the NASDAQthe NYSE has a real trading room.

To buy or sell a Security listed on the NYSE, an investor places an order by calling a broker or going through an online trading account. Once the order reaches the NYSE trading floor, floor brokers and specialists execute the transaction.

Alice Jarcho was the first woman to serve as a full-time Big Board broker.

Grand Council Rules and Regulations

The Big Board operated as a not-for-profit institution for hundreds of years until March 2006 when it became a for-profit corporation. The NYSE Board of Directors oversees its members and listed companies; however, the Big Board is still subject to a wide range of regulations from several federal agencies, including the Federal Reserveand the Security and Exchange Commission (SECOND).The SEC oversees the NYSE and all national stock exchanges, investment institutions, brokerage firms, and other securities market participants.

When the prices of listed securities are rising or falling rapidly, the Big Board may restrict trades to reduce the large number of program trades that occur during an average trading session. Stopping trading after a large move triggers a circuit breaker, which is set up to curb panic selling. Border policies for the NYSE were first defined and instituted in 1987. They are now codified in the Securities and Exchange Commission (SEC) Rule 80B. Currently, Rule 80B has three restriction levels that are set to halt trading when the S&P 500 Index declines by 7%, 13% or 20%. Borders set up on exchanges are executed separately from futures markets.