How does the New York Stock Exchange operate?
The New York stock exchange (NYSE) is a centralized market. This means that all the operations have to supposedly be made on the own market. Now a days, many companies trade securities admitted to quotation at the NYSE through telephone lines or by way of personal computers, for which they don’t even step on the floor of the NYSE. To this form of contracting they have given afterwards a letter of nature by ways of the derogation of the rule 390 of the NYSE. Another attribute of the NYSE is that they only negotiate in it some determined securities; does who don’t have the “Height” are quoted in other markets. That is, for a security to be admitted to quotation at the NYSE has to have a series of requisites. Today, these necessary requirements to be admitted to quotation have to do with the history of profits of the society, with the value of its assets, with the number of shares in circulation and with the volume of trade in other markets.
A company that is specialist may have in their charge the shares of more than one society, but more than one specialist company can’t trade the shares of a society. This makes of the specialist company too be an exclusive market agent for the shares of a determined society. The specialist companies operate in a determined place of the stock exchange market, and to that place they go when wanting to buy or sell specific shares. The specialist companies give to their shares a methodical and active market, buying when prices fall and selling when prices rise. They are like the auction houses that buy and sell their existences; they will act when no one more desires to, to try to palliate the market exercises.
By the position they occupy, the specialist firms have access to valuabl ...