ASSIGNMENT:

INVESTMENT PORTFOLIO

TOPIC:
NEW YORK STOCK EXCHANGE

SUBMITTED TO:
SYED MUHAMMAD JAVED BUKHARI

SUBMITTED BY:

CLASS:
Name: M. Com 3rd Semester
MUHAMMAD AZAD

Email : financematters002@yahoo.com SESSION:

2007-2009

Table of contents

Chapter 1 Introduction 01
Definitions 01
Mission statement 01
Worlds largest stock exchange 01
Requirements by NYSE 02
Holidays 02
New York stock exchange 03
Chapter 2 History of NYSE Euronext 04
Listed Chinese companies 05

1 NYSE GROUP
 Merger with Euronext 06
Presidents & Chairman 06
Ownership 09
Old share certificates 09
Chapter 3 Events 11
Hot event 13
Chapter 4 The role of stock exchanges 15
Chapter 5 Management of NYSE Euronext 17
Board of directors 17
Chapter 6 Brokerage & company listing 20
Requirements to become a broker 20
Stock broking services 20
Famous stock brokers 21
Requirements for listing 21
Listed companies 25
Chapter 7 Future of stock exchange 26

References 28

Introduction

Definitions:
• An exchange on which shares of stock and common stock equivalents are
bought and sold.
• An exchange where security trading is conducted by professional
stockbrokers.
• Marketplace where brokers and dealers meet to buy and sell stocks of publicly
traded companies on behalf of investors.
• A formal organization, approved and regulated by the SEC, made up of
members who use the exchange to trade certain common stocks.

Mission statement

2 NYSE GROUP
 NYSE Group believes that managing diversity is a business imperative,
essential to the company’s success as the leading global financial marketplace and an
employer of choice. At NYSE Group, diversity means enabling people of all races,
ages, genders, sexual orientations, disabilities, cultures, religions, and styles to work
together effectively to meet company objectives and maximize individual potential in
an environment that promotes the growth and development of all individuals.

Worlds largest stock exchange.

NYSE Euronext is a worlds largest stock exchange by dollar ($) volume.

Requirements by NYSE.
To be listed on the New York Stock Exchange (NYSE) a company must have
issued at least a million shares of stock worth $100 million and must have earned
more than $10 million over the last three years.

Holidays
New Year's Day (Jan. 1) Closed every year.

Martin Luther King, Jr. Day (Jan. 15) Closed for 1 minute of silence at noon since
1986. Closed all day beginning in 1998.
Observed on the third Monday of January.

Lincoln's Birthday (Feb. 12) Closed every year, 1896-1953.

Washington's Birthday (Feb. 22) Closed every year. Observed on Mondays

since 1971.

Good Friday Closed every year except 1898, 1906 and

1907.

3 NYSE GROUP
Decoration/Memorial Day (May 30) Closed every year since 1873. Observed on
Mondays since 1971.

Independence Day (July 4) Closed every year.

Labor Day Closed every year, 1887-date.

Columbus Day (Oct. 12) Closed every year, 1909-1953.

Election Day Closed every year through 1968.

Closed presidential election years only,
1972-1980.

Armistice/Veteran's Day (Nov. 11)
Closed all day, 1918 and 1921.
Closed for two minutes, 1922-1933.
Closed all day, 1934-1953.
Closed at 11:00 am for two minutes, 1954-
2006.1

Thanksgiving Day Closed every year.

Christmas Day (Dec. 25) Closed every year.

New York stock exchange.

4 NYSE GROUP
 (U.S. National Historic Landmark)

Location: New York City, New York, United States

Built/Founded: 1903
Architect: Trowbridge & Livingston; George B. Post
Architectural style(s): Classical Revival
Governing body: Private
Key people Duncan Niederauer (CEO)
Currency United States dollar
No. of listings 4,400
NYSE Composite
Indexes
Dow Jones Industrial Average
Website www.nyse.com

♣♣♣♣♣♣♣

5 NYSE GROUP
 History of New York Stock Exchange.
The origin of the NYSE can be traced to May 17, 1792, when the Buttonwood
Agreement was signed by 24 stock brokers outside of 68 Wall Street in New York
under a buttonwood tree on Wall Street which earlier was the site of a stockade fence.
On March 8, 1817, the organization drafted a constitution and renamed itself the
"New York Stock & Exchange Board". (This name was shortened to its current form
in 1863.) Anthony Stockholm was elected the Exchange's first president.

The floor of the New York Stock Exchange in 1908

The first central location of the NYSE was a room rented for $200 a month in 1817
located at 40 Wall Street. The NYSE was destroyed in the Great Fire of New York
(1835). It moved to a temporary headquarters. In 1863 it changed its name to the New
York Stock Exchange (NYSE). In 1865 it moved to 10-12 Broad Street. The Dow
Jones Industrial Average (DJIA) was created by Dow Jones & Company, a financial
news publisher, in 1896.
Volume of stocks traded had increased sixfold in the years between 1896 and
1901 and a larger space was required to conduct business in the expanding
marketplace.[7] Eight New York City architects were invited to participate in a design
competition for a new building and the Exchange selected the neoclassic design from
architect George B. Post. Demolition of the existing building at 10 Broad Street and
the adjacent lots started on 10 May 1901.

The New York Stock Exchange building opened at 18 Broad Street on April
22, 1903 at a cost of $4 million. The trading floor was one of the largest volumes of
space in the city at the time at 109 x 140 feet (33 x 42.5 m) with a skylight set into a
72-foot (22 m) high ceiling. The main façade of the building features marble sculpture
by John Quincy Adams Ward in the pediment, above six tall Corinthian capitals,
called “Integrity Protecting the Works of Man”.
The building was listed as a National Historic Landmark and added to the
National Register of Historic Places on June 2, 1978.

In 1922, a building designed by Trowbridge & Livingston was added at 11

Broad Street for offices, and a new trading floor called "the garage". Additional
trading floor space was added in 1969 and 1988 (the "blue room") with the latest
technology for information display and communication. Another trading floor was
opened at 30 Broad Street in 2000. With the arrival of the Hybrid Market, a greater
proportion of trading was executed electronically and the NYSE decided to close the
30 Broad Street trading room in early 2006. In late 2007 the exchange closed the

6 NYSE GROUP
rooms created by the 1969 and 1988 expansions due to the declining number of
traders and employees on the floor, a result of increased electronic trading.

NYSE Euronext-listed Chinese Companies:

The NYSE is the premier U.S. listing venue for non-U.S. companies with 418
companies from 45 countries with a global market capitalization of nearly $10 trillion.
NYSE Euronext markets list 57 companies listed from Greater China. This
includes 41 companies from Mainland China listed on the NYSE, 4 from Hong Kong
on the NYSE, and 5 Taiwanese companies on the NYSE, as well as 4 companies
listed on NYSE Arca, and 4 companies listed on NYSE Alternext. Additionally, there
are 6 companies from Greater China listed on the Free Market in Europe operated by
NYSE Euronext.
The total global market capitalization of the 57 NYSE Euronext-listed
companies from Greater China is around $1 trillion. In 2007, the NYSE listed 20
companies from Greater China, including 18 IPOs. In 2008, NYSE Euronext
markets listed 7 companies from China, including 4 on its markets in Europe.
Merger with Euronext.
On June 1, 2006, NYSE Group, Inc. (NYSE: NYX) and Euronext N.V.
announced an agreement to combine the leading U.S. and pan-European securities
trading exchanges in a merger of equals. On April, 3, 2007, NYSE Group and
Euronext completed their historical business combination to create NYSE Euronext,
the world's leading and most liquid exchange group.

7 NYSE GROUP
 PRESIDENTS AND CHAIRMEN OF THE NEW YORK STOCK
EXCHANGE
During the 19th century and into the 20th century, the chief executive officer
of the NYSE was the president, an unsalaried position held by a member of the
Exchange.
When the Exchange was reorganized in 1938, the presidency became a full-
time, salaried office. The president was the chief executive officer, responsible for the
management and administration of the Exchange. The chairman presided at meetings
of the Board of Governors and was a member of the Exchange.
After another reorganization in 1972, the chairman of the Board of Directors became
the full-time salaried chief executive officer of the Exchange.
In 2003 the Exchange reorganized its governing structure again, separating the
offices of Chairman and Chief Executive Officer.
On March 7, 2006, the NYSE Group, a for-profit, publicly-owned company,
was formed out of the merger of the New York Stock Exchange and Archipelago
Holdings, Inc.
NYSE Euronext was established on April 4, 2007, by the merger of the NYSE
Group and Euronext N.V.
PRESIDENTS
1817 - 1818 Anthony Stockholm
1818 - 1824 G. S. Mumford
1824 - 1827 Edward Lyde
1827 - 1830 James W. Bleecker
1830 - 1831 Russell H. Nevins
1831 - 1834 John Ward
1834 - 1835 R. D. Weeks
1835 - 1836 Edward Prime
1836 - 1837 R. D. Weeks
1837 - 1851 David Clarkson
1851 - 1852 Henry G. Stebbins

8 NYSE GROUP
1852 - 1857 Charles R. Marvin
1857 - 1858 John R. Gourlie
1858 - 1859 Henry G. Stebbins
1859 - 1861 William H. Neilson
1861 - 1862 W. R. Vermilye
1862 - 1863 Abraham B. Baylis
1863 - 1864 Henry G. Stebbins
1864 - 1865 William Seymour, Jr.
1865 - 1866 R. L. Cutting
1866 - 1867 William Alexander Smith
1867 - 1868 John Warren
1868 - 1869 William Searls
1869 - 1870 William H. Neilson
1870 - 1871 William Seymour, Jr.
1871 - 1872 William B. Clerke
1872 - 1873 Edward King
1873 - 1874 Henry G. Chapman
1874 - 1875 George H. Brodhead
1875 - 1876 George W. McLean
1876 - 1877 Salem T. Russell
1877 - 1878 Henry Meigs
1878 - 1880 Brayton Ives
1880 - 1882 Donald Mackay
1882 - 1883 Frederick N. Lawrence
1883 - 1884 Alfrederick S. Hatch
1884 - 1886 J. Edward Simmons
1886 - 1888 James D. Smith
1888 - 1890 William L. Bull
1890 - 1892 Watson B. Dickerman
1892 - 1894 Frank K. Sturgis
1894 - 1898 Francis L. Eames
1898 - 1903 Rudolph Keppler
1903 - 1904 Ransom H. Thomas
1904 - 1907 Henry K. Pomroy
1907 - 1912 Ransom H. Thomas
1912 - 1914 James B. Mabon
1914 - 1919 Henry G. S. Noble
1919 - 1921 William R. Remick
1921 - 1924 Seymour L. Cromwell
1924 - 1930 Edward H. H. Simmons
1930 - 1935 Richard Whitney
1935 - 1938 Charles R. Gay
1938 - 1941 William McC. Martin, Jr.1
1941 - 1951 Emil Schram
1951 - 1967 G. Keith Funston
1967 - 1972 Robert W. Haack
There was no president appointed between May 1972 and May 1980.
1980 - 1984 John J. Phelan, Jr.
1985 - 1988 Robert J. Birnbaum
1988 - 1995 Richard A. Grasso
1996 - 2001 William R. Johnston

9 NYSE GROUP
First full-time, salaried president.
2002 - 2005 Robert G. Britz (President and Co-Chief
Operating Officer)
2006 - 2007 Gerald D. Putnam (President and Co-Chief
Operating Officer)
2002 - 2008 Feb. Catherine R. Kinney (President and Co-Chief
Operating Officer)
2007 Feb. - Nov. Duncan L. Niederauer (President and Co-Chief
Operating Officer)
As of February 2008, the new position of "Group Executive Vice President” (GEVP)
was introduced. No president or co-chief operating officer was appointed.
CHAIRMEN OF THE BOARD OF GOVERNORS
May 1938 - June 1938 William McC. Martin, Jr.
July 1938 - May 1940 Edward E. Bartlett, Jr.
May 1940 - May 1941 Charles B. Harding
May 1941 - May 1943 Robert L. Stott
May 1943 - May 1947 John A. Coleman
May 1947 - May 1951 Robert P. Boylan
May 1951 - May 1954 Richard M. Crooks
May 1954 - May 1956 Harold W. Scott
May 1956 - May 1958 James Crane Kellogg, III
May 1958 - May 1961 Edward C. Werle
May 1961 - Feb. 1962 J. Truman Bidwell
Feb. 1962 - May 1965 Henry M. Watts, Jr.
May 1965 - May 1967 Walter N. Frank
May 1967 - May 1969 Gustave L. Levy
May 1969 - May 1971 Bernard J. Lasker
May 1971 - Aug. 1972 Ralph D. DeNunzio

CHAIRMEN OF THE BOARD OF DIRECTORS

Aug. 1972 - May 1976 James J. Needham
May 1976 - May 1984 William M. Batten
May 1984 - Dec. 1990 John J. Phelan, Jr.

First full-time, salaried chairman.

Jan. 1991 - June 1995 William H. Donaldson
June 1995 - Sept. 2003 Richard A. Grasso
Sept. 2003 - April 2005 John S. Reed
April 2005 - April 2007 Marshall N. Carter
April 2007 - Jan Michiel Hessels
CHIEF EXECUTIVE OFFICERS
Jan. 2004 - Nov. 2007 John A. Thain
Nov. 2007 - Duncan L. Niederauer
Ownership
Stock exchanges originated as mutual organizations, owned by its member
stock brokers. There has been a recent trend for stock exchanges to demutualize,
where the members sell their shares in an initial public offering. In this way the
mutual organization becomes a corporation, with shares that are listed on a stock
exchange. Examples are Australian Securities Exchange (1998), Euronext (merged

10 NYSE GROUP
with New York Stock Exchange), NASDAQ (2002), the New York Stock Exchange
(2005), Bolsas y Mercados Españoles, and the São Paulo Stock Exchange (2007). The
Shenzhen and Shanghai stock exchanges can been characterized as quasi-state
institutions insofar as they were created by government bodies in China and their
leading personnel are directly appointed by the China Securities Regulatory
Commission.
Old share certificates.

11 NYSE GROUP
 ♣♣♣♣♣♣♣

Events.
The exchange was closed shortly after the beginning of World War I (July
1914), but it re-opened on November 28 of that year in order to help the war effort by
trading bonds.

On September 16, 1920, a bomb exploded on Wall Street outside the NYSE
building, killing 33 people and injuring more than 400. The perpetrators were never
found. The NYSE building and some buildings nearby, such as the JP Morgan
building, still have marks on their facades caused by the bombing.

The Black Thursday crash of the Exchange on October 24, 1929, and the sell-
off panic which started on Black Tuesday, October 29, are often blamed for
precipitating the Great Depression of 1929. In an effort to try to restore investor
confidence, the Exchange unveiled a fifteen-point program aimed to upgrade
protection for the investing public on October 31, 1938.

On October 1, 1934, the exchange was registered as a national securities

exchange with the U.S. Securities and Exchange Commission, with a president and a
thirty-three member board. On February 18, 1971 the non-profit corporation was
formed, and the number of board members was reduced to twenty-five.

On October 19, 1987, the Dow Jones Industrial Average (DJIA) dropped 508
points, a 22.6% loss in a single day, the biggest one-day drop the exchange had yet
experienced, prompting officials at the exchange to invoke for the first time the

12 NYSE GROUP
"circuit breaker" rule to halt all trading. This was a very controversial move and led to
a quick change in the rule; trading now halts for an hour, two hours, or the rest of the
day when the DJIA drops 10, 20, or 30 percent, respectively. In the afternoon, the
10% and 20% drops will halt trading for a shorter period of time, but a 30% drop will
always close the exchange for the day. The rationale behind the trading halt was to
give investors a chance to cool off and reevaluate their positions. Black Monday was
followed by Terrible Tuesday, a day in which the Exchange's systems did not perform
well and some people had difficulty completing their trades.
Further information: Black Monday (1987)

There was a panic similar to many with a fall of 7.2% in value (554.26 points)
on October 27, 1997 prompted by falls in Asian markets, from which the NYSE
recovered quickly.
Further information: October 27, 1997 mini-crash

On January 26, 2000, an altercation during filming of the music video for
Sleep Now in the Fire, which was directed by Michael Moore, caused the doors of the
exchange to be closed and the band, Rage Against the Machine, to be escorted from
the site by security,[11] after band members attempted to gain entry into the
exchange.[12] Trading on the exchange floor, however, continued uninterrupted.[13]

The NYSE was closed from September 11 until September 17, 2001 as a result
of the September 11, 2001 attacks.

On September 17, 2003, NYSE chairman and chief executive Richard Grasso
stepped down as a result of controversy concerning the size of his deferred
compensation package. He was replaced as CEO by John S. Reed, the former
Chairman of Citigroup.

The NYSE announced its plans to acquire Archipelago on April 21, 2005, in a
deal intended to reorganize the NYSE as a publicly traded company. NYSE's

13 NYSE GROUP
governing board voted to acquire rival Archipelago on December 6, 2005, and
become a for-profit, public company. It began trading under the name NYSE Group
on March 8, 2006. A little over one year later, on April 4, 2007, the NYSE Group
completed its merger with Euronext, the European combined stock market, thus
forming the NYSE Euronext, the first transatlantic stock exchange.

Hot event.
Subject:
NYSE Euronext Completes Acquisition of AMEX

Highlights:
• AMEX Acquisition closed on October 1, 2008
• AMEX equities exchange to be called “NYSE Alternext”
• AMEX options market to be called “NYSE AMEX Options”
• Acquisition will complement equities business and allow NYSE Euronext to
offer choice in options market structure

Action:
This is an announcement notice; there is no action necessary.

Summary:
We are pleased to announce that the acquisition of the American Stock
Exchange (AMEX) by NYSE Euronext was completed. This historic transaction not
only brings a new exchange into the NYSE Euronext family but increases our scale in
U.S. options trading, exchange traded funds (ETFs), closed-end funds, structured
products and cash equities markets. Moving forward, the equities exchange will be
called “NYSE Alternext” and the options market will be called
“NYSE AMEX Options”. Both will trade on the former AMEX SRO, which had been
renamed NYSE Alternext
US.

In the U.S., NYSE Euronext will operate three equities markets – NYSE, NYSE Arca
and NYSE Alternext
offering choice in market structure and trading products. As we had previously
announced, equities trading
on Amex/AEMI systems and floor will transition to NYSE systems and floor in early
December. The migration
of Exchange Traded Products (ETFs, ETNs, ILNs, etc.) from the Amex/AEMI system
to NYSE Arca or other
exchanges is expected to occur in stages and be fully completed at the end of
November. You will receive
regular notices and web postings with details by symbol on the migration.
NYSE Euronext’s U.S. options business will operate a dual market structure, making
available to all

14 NYSE GROUP
customers the choice of price-time priority on NYSE Arca and the Amex’s traditional
market-maker model.
Amex options technology will be transitioned to NYSE Arca-based technology and
the Amex options floor will
be relocated to a new location adjacent to the NYSE equities trading floor in February
2009.

NYSE Euronext paid $260 million in common stock for the 166-year-old market.
Amex members are also entitled to additional NYSE Euronext common shares based
on net proceeds, if any, from the expected sale of Amex’s lower Manhattan
headquarters. Renamed NYSE Alternext US LLC, Amex is now a wholly owned
subsidiary of NYSE Group. The transaction, which has been approved by Amex
members and U.S. regulators, is expected to be accretive to earnings in 2009.

The company expects to realize annualized cost synergies (from technology, data
center and staff integration, as well as service and vendor consolidation) of $100
million by the end of 2009. All of Amex’s equity trading floor operations, including
floor traders and designated market makers (DMMs), previously known as specialists,
will move to the NYSE’s Wall Street trading floor facilities in December, and the
remaining options trading operations and staff will follow in February 2009.

♣♣♣♣♣♣♣

15 NYSE GROUP
 The role of stock exchanges
Stock exchanges have multiple roles in the economy, this may include the following:

Raising capital for businesses

The Stock Exchange provides companies with the facility to raise capital for
expansion through selling shares to the investing public.

Mobilizing savings for investment

When people draw their savings and invest in shares, it leads to a more
rational allocation of resources because funds, which could have been consumed, or
kept in idle deposits with banks, are mobilized and redirected to promote business
activity with benefits for several economic sectors such as agriculture, commerce and
industry, resulting in stronger economic growth and higher productivity levels and
firms.

Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines,
increase distribution channels, hedge against volatility, increase its market share, or
acquire other necessary business assets. A takeover bid or a merger agreement through
the stock market is one of the simplest and most common ways for a company to
grow by acquisition or fusion.

Redistribution of wealth
Stocks exchanges do not exist to redistribute wealth. However, both casual and
professional stock investors, through dividends and stock price increases that may
result in capital gains, will share in the wealth of profitable businesses.

Corporate governance
By having a wide and varied scope of owners, companies generally tend to
improve on their management standards and efficiency in order to satisfy the demands
of these shareholders and the more stringent rules for public corporations imposed by
public stock exchanges and the government. Consequently, it is alleged that public
companies (companies that are owned by shareholders who are members of the
general public and trade shares on public exchanges) tend to have better management
records than privately-held companies (those companies where shares are not publicly
traded, often owned by the company founders and/or their families and heirs, or
otherwise by a small group of investors).
However, some well-documented cases are known where it is alleged that
there has been considerable slippage in corporate governance on the part of some
public companies. The dot-com bubble in the early 2000s, and the subprime mortgage
crisis in 2007-08, are classical examples of corporate mismanagement. Companies
like Pets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001),

16 NYSE GROUP
Webvan (2001), Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), Fannie
Mae (2008), Freddie Mac (2008), Lehman Brothers (2008), were among the most
widely scrutinized by the media.

Creating investment opportunities for small investors

As opposed to other businesses that require huge capital outlay, investing in
shares is open to both the large and small stock investors because a person buys the
number of shares they can afford. Therefore the Stock Exchange provides the
opportunity for small investors to own shares of the same companies as large
investors.

Government capital-raising for development projects

Governments at various levels may decide to borrow money in order to
finance infrastructure projects such as sewage and water treatment works or housing
estates by selling another category of securities known as bonds. These bonds can be
raised through the Stock Exchange whereby members of the public buy them, thus
loaning money to the government. The issuance of such bonds can obviate the need to
directly tax the citizens in order to finance development, although by securing such
bonds with the full faith and credit of the government instead of with collateral, the
result is that the government must tax the citizens or otherwise raise additional funds
to make any regular coupon payments and refund the principal when the bonds
mature.

Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market
forces. Share prices tend to rise or remain stable when companies and the economy in
general show signs of stability and growth. An economic recession, depression, or
financial crisis could eventually lead to a stock market crash. Therefore the movement
of share prices and in general of the stock indexes can be an indicator of the general
trend in the economy.

♣♣♣♣♣♣♣

Management of New York Stock Exchange.

Chief Executive Officer

17 NYSE GROUP
DUNCAN L. NIEDERAUER
Duncan L. Niederauer is Chief Executive Officer of NYSE Euronext. He is a
member of the company’s Management Committee and also serves on the Board of
Directors. Prior to his current position, Mr. Niederauer was head of U.S. cash
equities.
Before joining NYSE Euronext in April 2007, he was Managing Director and
co-Head of the Equities Division Execution Services for Goldman Sachs & Co. He
joined Goldman in 1985 and moved to the Equities Division in 1987. In 2000, Mr.
Niederauer relocated to the headquarters of Spear, Leeds & Kellogg, where he
managed the firm’s global clearing and execution business. He also ran the Equities
E-Commerce effort, and was the global head of portfolio trading and spent time in
Tokyo in Derivatives and Japanese products.
He earned an MBA from Emory University and a BA from Colgate University
, where he currently serves on the Board of Trustees.
Board of directors.
The NYSE Euronext Board of Directors, elected annually, is comprised of a
majority of independent directors, an independent, non-executive chairman and
deputy chairman, and the chief executive officer and deputy chief executive officer of
NYSE Euronext.
Chairman

Jan-Michiel Hessels
Chairman of the Board of Directors

18 NYSE GROUP
Mr. Hessels is the chairman of the Board of NYSE Euronext, and he has been the
chairman of the supervisory board of Euronext N.V. since its creation in September
2000.
Deputy Chairman

Marsh Carter
Marshall N. Carter is the deputy chairman of the Board of NYSE Euronext,
and he has served as chairman of the Board of Directors of NYSE Group, Inc. and its
predecessor, the New York Stock Exchange, since April 7, 2005. Mr. Carter, 65, has
been a director since December 2003.

Board of Directors

Duncan L. Niederauer (Chief Executive Officer)

Jean-François Théodore (Deputy Chief Executive Officer)
Ellyn L. Brown
Sir George Cox

19 NYSE GROUP
William E. Ford
Sylvain Hefes
Dominique Hoenn
Shirley Ann Jackson
James S. McDonald
Duncan M. McFarland
James J. McNulty
Baron Jean Peterbroeck
Alice M. Rivlin
Ricardo Salgado
Rijnhard van Tets
Sir Brian Williamson

Brokerage & company listing

Requirments to become a Broker.
In order to become a stockbroker in the United States, a candidate must pass
the General Securities Representative Examination (also known as the "Series 7
exam").
The General Securities Representative Exam, commonly referred to as the
Series 7 Exam, is a required exam to become a Registered Representative of a broker-
dealer in the United States.
The exam is a six-hour, 260 question test (250 of which count towards the
final score) that is owned and maintained by the National Association of Securities
Dealers (NASD) and administered by the self-regulating Financial Industry
Regulatory Authority (FINRA), which covers a broad range of investments including
stocks, bonds, options, limited partnerships, and investment company products (e.g.,
open- and closed-end funds). A candidate must answer 70% of the questions correctly
in order to pass. Upon passing the test, one is granted a Series 7 / General Securities
license. The series 7 license is the most comprehensive of several securities licenses
that permit an agent to communicate with retail investors. For this reason, many
account managers, analysts, and other executives in the employ of a registered
Broker/Dealer hold Series 7 licenses. To satisfy the securities dealing requirements of
some states, Series 7 license holders must also hold the Series 63 license or the Series
66 license, depending on that state the licensee works in and the state his/her clients
reside in.
Stockbroking service.
A stock broker or stockbroker is a regulated professional who buys and sells
shares and other securities through market makers or Agency Only Firms on behalf of
investors.

20 NYSE GROUP
 A transaction on a stock exchange must be made between two members of the
exchange — an ordinary person may not walk into the New York Stock Exchange (for
example), and ask to trade stock. Such an exchange must be done through a broker.

There are three types of stockbroking service.

• Execution-only, which means that the broker will only carry out the client's
instructions to buy or sell.
• Advisory dealing, where the broker advises the client on which shares to buy
and sell, but leaves the final decision to the investor.
• Discretionary dealing, where the stockbroker ascertains the client's investment
objectives and then makes all dealing decisions on the client's behalf.
In addition to actually trading stocks for their clients, stock brokers may also offer
advice to their clients on which stocks, mutual funds, etc. to buy.

Famous stock brokers

➢ Larry "Buster" Crabbe
➢ Brian Dennehy
➢ Jerry Doyle
➢ Christopher Gardner
➢ Paul Gauguin
➢ Edward Francis Hutton
➢ Jérôme Kerviel
➢ Nick Leeson.
➢ Michael Milken
➢ George Murphy
➢ William A. Paine
➢ Hemish Shah
➢ Martha Stewart
➢ John Vernou Bouvier

21 NYSE GROUP
 ➢ Lexington Steele
Requirements for listing in NYSE Euronext.
In order to be listed on the Exchange, warrants must be issued to purchase a
security that is already listed or that will be listed concurrent with the warrants. The
warrant holder shall not be entitled to any privileges of the holder of common stock
(e.g. dividends, preemptive rights or voting rights).
If the warrants are exercisable into listed common stock, the listing of the warrants
and the underlying common stock is subject to the NYSE shareholder approval policy.
Warrants must be issued as fully registered instruments. They must be issued
in a form approved by the Exchange, and transferable, exercisable, payable and
deliverable in the Borough of Manhattan, in the City of New York.
The terms of the warrants should include the usual anti-dilution provisions
protecting the warrant holder.
(A) Standards for Listing
1,000,000 warrants outstanding.
At least 400 holders.
At least $4 million aggregate market value.
Warrants should have a minimum life of one year, and an aggregate market
value of at least $4 million. In reviewing the eligibility for listing of warrants, the
Exchange will also take into consideration certain other factors including the
relationship between the exercise price of the warrants and the price of the underlying
security at the time of issuance; and the proportion of the issuer's total equity that all
issues of warrants represent. (Note: Prior to Dec. 1992, the Exchange stated that the
warrant exercise price must not be "substantially" — not greater than approximately
25% — above market price. In addition, the Exchange would not list warrants where a
new warrant issue would result in more than 50% of a company's common stock
being represented in warrant form.)
While the standards outlined herein are generally determinative on the
question of eligibility for listing, the Exchange can, where circumstances warrant,
take into consideration these and other factors which could have a bearing on the
warrant holder's ultimate expectation of exercising his warrant. This could include,
but is not limited to, the issuer's relative stability and position in its industry, whether
it is engaged in an expanding industry with prospects of maintaining its position, the
degree of national interest in the company, whether the security to which the warrant
is attached at the time of issuance can be used as consideration in exercising the
warrant, etc.
Also, the Exchange normally refuses to list warrants issued in connection with
other securities which do not meet Exchange listing requirements. The terms of the
warrants must not give the company the right to reduce the established price of the
warrant for periods of time, or from time to time, during the life of the warrants.
Finally, the Exchange strongly recommends that each warrant have a residual value at
expiration. The value could take the form of a monetary value or security value, e.g.,
100 warrants entitles a holder to one share of common stock or some other security.

(B) Filing a Listing Application Relating to Warrants

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 The general instructions for preparation and filing of a listing application are
described in Para. 703. 01.The listing application format is presented in Para. 903.02.
(C) Supporting Documents
The following documents, as applicable, must be filed in support of the listing
application:
Timetable (if requested) — include proposed date of effectiveness and closing
date. If warrants are part of unit offering date they are detachable. Such information
may be referenced in a cover letter which accompanies the application.
Copies of opinions of counsel filed in connection with recent public offerings
or, if no opinions of counsel exist, a certificate of good standing from the company’s
jurisdiction of incorporation.
Prospectus—4 copies each of preliminary and final.
Document setting forth definitive terms of warrants.
Specimen of warrant certificates.
Current form of Listing Fee Agreement (if not previously filed). (See Para. 902.01.)
Current form of Listing Agreement (if not previously filed). (See Para. 901.00.)
Registration statement under the Securities Exchange Act of 1934. In lieu of
signed copy Company may submit registration statement as filed via EDGAR. Include
a statement to the effect that the registration statement, as submitted, is a true and
complete copy of that which has been filed with the Securities and Exchange
Commission.

Indemnification Agreement. (See Para 501.05).

Notice of availability of warrant certificates.
Distribution information.

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24 NYSE GROUP
Listed companies.
NYSE Euronext's nearly 4,400 listed companies represent a combined $30.3 /
€18.3 trillion in total global market capitalization (as of Dec. 31, 2008), more than
four times that of any other exchange group. NYSE Euronext's equity exchanges
transact an average daily trading value of approximately $169.6 / €113.2 billion which
represents more than one-third of the world's cash equities trading.

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Future of stock exchange.

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 The future of stock trading appears to be electronic, as competition is
continually growing between the remaining traditional New York Stock Exchange
specialist system against the relatively new, all Electronic Communications Networks,
or ECNs. ECNs point to their speedy execution of large block trades, while specialist
system proponents cite the role of specialists in maintaining orderly markets,
especially under extraordinary conditions or for special types of orders.
The ECNs contend that an array of special interests profit at the expense of
investors in even the most mundane exchange-directed trades. Machine-based
systems, they argue, are much more efficient, because they speed up the execution
mechanism and eliminate the need to deal with an intermediary.
Historically, the 'market' (which, as noted, encompasses the totality of stock
trading on all exchanges) has been slow to respond to technological innovation, thus
allowing growing pure speculation to continue. Conversion to all-electronic trading
could erode/eliminate the trading profits of floor specialists and the NYSE's "upstairs
traders", who, like in September and October 2008, earned billions of dollars selling
shares they did not have, and days later buying the same amount of shares, but maybe
15 % cheaper, so these shares could be handed to their buyers, thereby making the
market fall deeply.
William Lupien, founder of the Instinet trading system and the OptiMark
system, has been quoted as saying "I'd definitely say the ECNs are winning... Things
happen awfully fast once you reach the tipping point. We're now at the tipping point."
One example of improved efficiency of ECNs is the prevention of front
running, by which manual Wall Street traders use knowledge of a customer's
incoming order to place their own orders so as to benefit from the perceived change to
market direction that the introduction of a large order will cause. By executing large
trades at lightning speed without manual intervention, ECNs make impossible this
illegal practice, for which several NYSE floor brokers were investigated and severely
fined in recent years.[6] Under the specialist system, when the market sees a large
trade in a name, other buyers are immediately able to look to see how big the trader is
in the name, and make inferences about why s/he is selling or buying. All traders who
are quick enough are able to use that information to anticipate price movements.
ECNs have changed ordinary stock transaction processing (like brokerage
services before them) into a commodity-type business. ECNs could regulate the
fairness of initial public offerings (IPOs), oversee Hambrecht's OpenIPO process, or
measure the effectiveness of securities research and use transaction fees to subsidize
small- and mid-cap research efforts.
Some however, believe the answer will be some combination of the best of
technology and "upstairs trading" — in other words, a hybrid model.
Trading 25,000 shares of General Electric stock quote: $34.76; recent volume:
44,760,300) would be a relatively simple e-commerce transaction; trading 100 shares
of Berkshire Hathaway Class A stock (recent quote: $139,700.00; recent volume: 850)
may never be. The choice of system should be clear (but always that of the trader),
based on the characteristics of the security to be traded.
Even with ECNs forming an important part of a national market system,
opportunities presumably remain to profit from the spread between the bid and offer
price. That is especially true for investment managers that direct huge trading volume,
and own a stake in an ECN or specialist firm. For example, in its individual stock-
brokerage accounts, "Fidelity Investments runs 29% of its undesignated orders in

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NYSE-listed stocks, and 37% of its undesignated market orders through the Boston
Stock Exchange, where an affiliate controls a specialist post."

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References
www.nyse.com
www.euronext.com
www.amex.com
www.wikipedia.com
www.google.com/images
www.yahoo.com/images
Nyse euronext guide

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