The NYSE The Turtle

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The NYSE is the oldest and largest stock exchange in the United States. Located on Wall Street in New York City, this exchange has many responsibilities, including screening the companies that it lists on its "big board." The NYSE has a reputation for listing only the most elite companies. The criteria it uses to list a company include:

• The company must have a net income of more than $2.5 million US (before federal income taxes) during the latest year and $2 million US in each of the preceding two years.

• It must pay a large initial listing fee.

• It must pay large annual fees to the NYSE.

The NYSE trading floor operates like an auction. Exchange members, who act on behalf of institutions and individual investors, manage the open bid and offers on the trading floor. Buy and sell orders for each listed security take place directly on the trading floor in assigned locations. Supply and demand determines the prices. Buy and sell orders for a particular stock are given to a specialist who executes the orders using a wide range of buyers and sellers.

The NYSE trades with tighter ranges and less volatility than other stock exchanges, particularly NASDAQ. This has led to the NYSE being called "the turtle." For this reason, the opportunities that exist for day traders to capitalize on intraday price fluctuations are significantly fewer on this exchange than those found on NASDAQ.

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