The Significance of the Stock Exchange

Overview

Trading began on the New York Stock Exchange in 1792.

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The New York Stock Exchange (NYSE) is among the most historic landmarks in New York. It is not the only exchange, however, and trillions of dollars collectively trade on the global stock market every day.
Types

In the U.S., the largest and most prestigious stock exchange is the NYSE, where about 8,500 companies list shares. The Nasdaq is an all electronic stock exchange in which thousands of technology companies and others choose to list shares. In 2008, the NYSE acquired the American Stock Exchange, which was the largest exchange in the world.

History

The NYSE traces its origins back to the 18th century when 24 merchants gathered around a buttonwood tree in lower Manhattan for the first organized stock trades. The merchants formed the Buttonwood Agreement to display commitment to investors and issuers, and this was the premise from which the NYSE was formed.
Size

Stock exchanges are truly global marketplaces and some of the largest companies in the world list shares on multiple exchanges around the world. In 2005, Chinese search engine company Baidu listed shares on Nasdaq in the U.S. Its shares soared 350 percent on the first day of trading and the search engine raised $109 million, according to BusinessWeek.
Employment

The stock market is the source of hundreds of thousands of jobs on Wall Street and around the world. In the U.S., Wall Street represents 24 percent of all salaries earned in New York City, according to the New York state comptroller.
Considerations

The prestige of the NYSE is at risk of being threatened by a nascent group of exchanges known as "dark pools" that have the ability to execute large blocks of trades at "lightning speed," according to The New York Times. The NYSE is competing by lowering trading commissions and developing its all electronic market place, Arca.