New York Stock Exchange (NYSE)
Also known as: the Big Board
The New York Stock Exchange (NYSE) is the world's largest stock exchange by the market value of its listed companies. It operates as an auction market where buyers and sellers trade listed securities through a centralized system.
The New York Stock Exchange (NYSE), nicknamed the Big Board, is the largest stock exchange in the world measured by the total market capitalization of its listed companies. Founded in 1792 under the Buttonwood Agreement, it is located on Wall Street in New York City and today combines its famous physical trading floor with electronic trading systems.
The NYSE is an auction market: buyers and sellers submit competing bids and offers, and trades execute when the highest bid meets the lowest offer. Each listed security is assigned a designated market maker (DMM) — historically called a specialist — responsible for maintaining a fair and orderly market in that stock, stepping in with their own capital when buying or selling interest is thin.
The NYSE is part of the secondary market, where investors trade existing shares with each other rather than buying new shares from the issuing company. Companies must meet listing standards — including thresholds for shareholders, share price, and financial size — to have their stock traded on the exchange, and listed status signals liquidity and visibility to investors.
The NYSE features prominently on the securities exams. The SIE and Series 7 exams test how the exchange's auction process works, the role of the DMM, and how exchange trading differs from the over-the-counter market, while the Series 65 exam covers bids, offers, and quote mechanics that trace directly to exchange trading.
Key takeaways
- The NYSE is the world's largest stock exchange by listed market capitalization and operates as an auction market.
- Each listed stock has a designated market maker (DMM) responsible for maintaining a fair and orderly market.
- The NYSE is a secondary market venue — investors trade existing shares with each other, not with the issuer.
- Companies must meet listing standards to trade on the exchange.
- The SIE, Series 7, and Series 65 exams test NYSE auction mechanics and how exchanges differ from OTC trading.