The New York Stock Exchange (NYSE) is a New York City-based public marketplace for trading stock. It is the largest stock exchange in the world based on market capitalization.
Stock traders traditionally traded on the floor, using the open outcry system. The NYSE predominantly transitioned to electronic trading systems, however. The NYSE is open from 9:30 am – 4:00 pm EST and is closed on certain holidays.
Companies may desire to be listed on NYSE because it gives them greater access to capital and gives their stock greater liquidity. Only public companies may be listed on the NYSE, meaning companies must complete an Initial Public Offering and satisfy other Securities and Exchange Commission (SEC) regulations for public companies. Further, the NYSE has its own listing requirements, which are broken down into quantitative and qualitative listing standards. Quantitative standards require companies to meet minimums for financial metrics such as an earnings test and a global market capitalization test, as well as a minimum requirement for the amount of publicly held shares and shareholders. Qualitative standards include, among others, satisfying certain corporate governance requirements.
[Last updated in January of 2022 by the Wex Definitions Team]