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The New York Stock Exchange (NYSE) is an important component of the US system of

ID: 1100902 • Letter: T

Question

The New York Stock Exchange (NYSE) is an important component of the US system of markets for stocks and bonds. The securities traded on the NYSE are corporate stocks. Before the NYSE's reorginization in 2006, only owners of NYSE Seats could trade stocks on the NYSE and a seat, which gave you the right to execute purchases and sales of stocks, was an asset that could be bought or sold. From 2002 to 2005, the market price of an NYSE seat declined by 63%, but then the price increased to an all-time high in December 2005. Do some research on the seats at the New York Stock Exchange in the early and middle part of the 2000's and answer the following questions:

A. Why did the price of an NYSE seat go through such extreme variations in the early and middle part of the 2000's before the restructuring?

B. Why did the price of an NYSE seat recover so rapidly after the restructuring was announced in 2005?


Explanation / Answer

What is an advantage for investors of trading securities on the New York Stock Exchange?

EASY

Response: The NYSE is the oldest, largest and most liquid stock exchange in the world. Section: The Secondary Markets.   

. Which of the following is NOT a factor when the NYSE considers whether a company can list on the NYSE?

MEDIUM

Response: Approximately 450 NYSE listed stocks are not headquartered in the US. Section: The Secondary Markets.

NYSE has specialists, but NASDAQ does not. How does NASDAQ handle the function that the specialists provide to NYSE?

HARD

Response: The NASDAQ is an electronic trading system providing instantaneous transactions as multiple market makers compete for investor orders.   Section: The Secondary Markets.

Which of the following countries is NOT considered an

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