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Us Stock Market, Its Working And History
Posted in: Investments in pom's Blog

Us Stock Market, Its Working And History

There are a lot of ups and downs in the very long history of the US stock market. The stock market is made up of 2 exchanges: the NYSE (meaning New York Stock Exchange) and the NASDAQ (meaning National Association of Securities Dealers Automated Quotations).

The market capitalization of the New York Stock Exchange is in trillions of dollars and is the highest in the world. Over a hundred and fifty years old, the NYSE has also the largest volume of shares traded in the world measured in dollars. However, if volumes are only considered, the New York Stock Exchange comes in second place, after the NASDAQ.

The US Stock market offers a convenient means by which a common stock holder can trade in stocks, by easily buying and selling them. Such trading is done electronically in both exchanges, and also on the trading floor in the case of the NYSE. Direct trading on the floor of the exchange is restricted to members or "seat" owners. The seats are limited in number and are much sought after. You have to pay a price in order to become a seat owner. Currently the price is around $4 million.

An index of stocks reflects the general trend in the prices of stocks. Each major stock exchange has an index constructed from the prices of significant stocks that are quoted and traded in the exchange. The NASDAQ index, the Dow Jones index and the S&P index are the three most important indices in the US. These indices are further enlarged to include stocks of all major sectors in order to indicate sector wise trends.

Stocks are represented by stock symbols in stock exchanges. These are condensed forms of the name of the company. Price, history and movement of these stocks can be researched without difficulty by anyone from the stock exchange website.

The stock market history of US is interesting as well as informative. Year 1929 has significant marking in the long history. The year witnessed worst crash. Black Tuesday a day when largest amount of stock sale was settled in a day; is noted as worst day in the history of US stock market. The magnitude of the crash was such that it caused a loss of more than $100 million of investors' assets. This amount is equivalent of several hundred times more in today's value of currency.

Should you have some spare money which you wish to invest stocks, this is a good option. There are various ways available for people which may even not have the expertise to manage their investments in their own. These ways include mutual fund companies and invest stocks. Even if these organisations usually manage your investments professionally, they are not all the same. You should always start your own investigation before deciding to invest through one ore another.

There are several avenues available for people who may not have the expertise to manage their own investments. These include invest stocks and mutual fund companies. The us stock market offers a convenient means by which a common stock holder can trade in stocks, by easily buying and selling them. Such trading is done electronically in both exchanges, and also on the trading floor in the case of the NYSE. Stock exchange has an index in order to know the general trend of the individual stock price movement.

by MARK CRISP
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Added November 27, 2007
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