ADMS 3541 Lecture Notes - Lecture 26: Nasdaq, Interbank, Telecommunications Network
Document Summary
The new york stock exchange (nyse) is the world"s largest equities exchange. Although some of its functions have been transferred to electronic trading platforms, it remains one of the world"s leading auction markets, meaning specialists are physically present on its trading floors. Each specialist specializes in a particular stock, buying and selling the stock in the auction. These professionals are under competitive threat by electronic-only exchanges that claim to be more efficient that is, they execute faster trades and exhibit smaller bid-ask spreads by eliminating human intermediaries. Companies listed on the nyse have great credibility because they have to meet initial listing requirements and must comply with annual maintenance requirements. To keep trading on the exchange, companies must keep their price above per share. Investors who trade on the nyse benefit from a set of minimum protections. Among several of the requirements that the nyse has enacted, the following two are especially significant: