NYSE Index

Mergers and splits

The current configuration of today's NYSE stock exchange company is due to a series of past mergers between different exchange companies. In 2006, for example, it became a publicly traded company by merging with Archipelago, an already listed electronic trading platform. A merger with the European exchange company Euronext followed in 2007 and NYSE Euronext was formed. This transatlantic exchange company was taken over in 2013 by the American Intercontinental Exchange. The European part was then split off again through an IPO in Europe.

NYSE part of Intercontinental Exchange

The American part remained part of Intercontinental Exchange. This is an international group that has bought many other trading platforms such as the Chicago Stock Exchange and the Canadian energy exchange NGX. The NYSE is in Lower Manhattan, located in the famous financial district of New York. The NYSE's iconic neoclassical building on famous Wall Street was built in the early twentieth century.

70% of shares in the S&P 500 are listed on the NYSE

The NYSE has long been the world's leading stock exchange. Over 70% of the shares in the S&P 500, the broad index of the US stock market, are listed on the NYSE. The NYSE is the platform companies choose when they decide to take the step of an IPO: from technology and healthcare companies to companies in the financial and energy sectors.

Physical trading and electronic trading coexist

Much of securities trading today is done digitally. The NYSE utilises a hybrid model, unlike the exchange company Nasdaq where trading is only done electronically. That means there are also trading floors where physical trading takes place. Broker representatives can trade with each other here using ‘open outcry’. This is a method of physical trading familiar from older movies about Wall Street. This involves traders using hand gestures to communicate with each other. The NYSE also has the NYSE Arca communications network to automatically match buy and sell orders.

The NYSE is open Monday through Friday from 9:30 AM to 4 PM, local time. There is usually a five-hour time difference between London/Dublin and New York. A bell sounds both at the opening of trading and at the end of the trading day. Until 1995, ringing the bell was a job for stock market employees, but since then, the NYSE regularly invites other people to ring the bell. Often these are directors of companies listed on the stock exchange, but it can also be done by public figures such as politicians or athletes.

Days when the NYSE is closed

The stock market is closed on vacations set by the US federal government. These include Christmas, Good Friday, New Years Day, Washington’s Birthday, Memorial Day, Labour Day, Thanksgiving Day, Martin Luther King Jr. Day and the celebration of American independence on July 4. If a holiday falls on a Saturday, the stock market is often closed the Friday before. If a holiday falls on a Sunday, then trading is often halted the following Monday. See our exchange calendar for a full overview of when different markets are closed.

Invest in the NYSE with DEGIRO

Do you want to invest in the NYSE? The American stock market can be interesting for you as an investor. Buying foreign stocks may be a way to diversify your portfolio. In addition, investing in the US market gives you access to a wider range of products than if you only invest in shares on your home market. Investing via US stock exchanges do come with additional risks. Consider, for example, currency risk. At the NYSE, you invest in US dollars (USD). So, if the USD falls in relation to your base currency, your investments will be worth less.

Tax consequences of investing on the NYSE

You should also consider tax-related consequences if you are planning to invest in the NYSE. Investors normally pay 30% US tax on the dividend income from shares of US-based companies. A tax treaty has been signed with the US that may allow you to receive a reduced rate. You can claim this reduced withholding tax rate by completing the W-8BEN form.

You can see if a US product falls under the tax treaty rates on our platform, check the product detail page and see if the product is on the ‘green list’. In addition, as a client, you must meet certain conditions to take advantage of this tax scheme. Here is more information on this. Please note that we are an execution-only broker, and, therefore, we do not provide tax advice in any way.

History of the NYSE

The history of the stock market in America dates to the late eighteenth century (May 17, 1792). Just after the American struggle for independence, the US government issued $80 million in government bonds to repay their war debts. This created the first financial market in the US. Trading then often took place in the open. The first traders that participated were called the ‘curbstone traders.’ In the eighteenth century, they invested heavily in new, emerging industries such as oil and railroads.

The information in this article is not written for advisory purposes and does not aim to recommend investments. Please note that the data may have changed since the writing of this article. Investing involves risks, and you may lose all or a portion of your investment. We recommend investing only in financial instruments that align with your knowledge and experience.

Sources: NYSE, Intercontinental Exchange