Introduction to New York Stock Exchange or NYSE for Kids and Beginners
This video explains what’s NYSE in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about the New York Stock Exchange, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
- What is the New York Stock Exchange
- What are the major companies listed on NYSE
- How does trading happen on NYSE
- What is special about the New York Stock Exchange
What is the New York Stock Exchange?
The New York Stock Exchange, or NYSE, is the largest stock exchange in the world, and was created in 1792.
It is an iconic building located on Wall Street in the financial district of New York City, and is owned and operated by the Intercontinental Exchange.
What are some popular companies listed on the NYSE?
The total market value of all the companies listed on the NYSE is in the tens of trillions of dollars, making the New York Stock Exchange the largest stock exchange in the world.
Also, some of the oldest publicly traded U.S. companies like IBM, Coca-Cola, Procter & Gamble, and Pfizer are listed on the NYSE. Some other popular stocks include Apple, Amazon, FedEx, Netflix, Citigroup, and Walmart.
How does trading happen on the New York Stock Exchange?
The New York Stock Exchange, also referred to as ‘The Big Board’, was famous for using the open outcry system on its trading floor, which is composed of 21 trading rooms. The open outcry system is where traders, who represent the buyers and sellers, shout stock prices at each other and make hand signals in order to complete the trades.
The NYSE processes billions of shares every single day, and although most of the trading nowadays happens electronically, the open outcry system is still used for a few extremely high priced stocks and high-volume institutional trades.
What else is special about the NYSE?
The NYSE’s opening bell at 9:30 a.m and closing bell at 4 p.m. mark the start and end of a trading day.
What started as a tradition has now become a very prestigious event and important people, like CEOs of businesses, and celebrities are invited to ring this bell.
What are some other popular stock exchanges?
Some other stock exchanges include the NASDAQ, London Stock Exchange, and Shanghai Stock Exchange. We’ll cover them in other videos.