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National Stock Exchange: What It Is, How It Works, Example

By

澳洲幸运5官方开奖结果体彩网:Jason Fernando

Updated April 08, 2024

Reviewed by

Andy Smith

Fact checked by

Hans Daniel Jasperson

What Is the National Stock Exchange?

The National Stock Exchange, better known by its abbreviation "NSX," was the first stock exchange in the United States to transition to 100% electronic trading. In 2017, the NSX was acquired by the 澳洲幸运5官方开奖结果体彩网:New York Stock Exchange (NYSE) and is now known as the NYSE National.

Key Takeaways

The National Stock Exchange, originally founded in 1885, was a stock exchange known for its railroad and financial firms.
It was an early adopter of computerized trading technologies.
Today, the National Stock Exchange is part of the NYSE, where it is known as the NYSE National.

Understanding the National Stock Exchange

The NSX was founded in Ohio in 1885, at which time it was known as the Cincinnati Stock Exchange. For much of its early history, it was known for its listings of railroad companies, banks, and insurance firm♈s.

The Cincinnati Stock Exchange was an early adopter of computerized trading technologies, closing down its 澳洲幸运5官方开奖结果体彩网:physical trading floor in 1976 and transitioning to fully electronic trading by 1980.

In 1995, it relocated to Chicago, Illinois, and then changed its name to the National Stock Exchange in 2003. It later moved again, this time to New Jersey.

In May 2014, the NSX ceased trading due to low 澳洲幸运5官方开奖结果体彩网:transaction volumes, but it was able to reopen a year and a half later. These problems persisted, however, with the NSX announcing in December 2016 that it would once again need to pause trading.

In an effort to reclaim 澳洲幸运5官方开奖结果体彩网:market share, the NSX merged with the NYSE, rebranding itself as the NYSE National.

After a brief pause in 2017, the NYSE National resumed trading in the second quarter of 2018. Today, the NYSE National operates as part of the NYSE Pillar trading platform, which seeks to combine several NYSE-affiliated markets into a comprehensive order fulfillment system.

Other "National Stock Exchanges"

The term "National Stock Exchange" can also refer to stock markets in India or Australia. In India, the 澳洲幸运5官方开奖结果体彩网:National Stock Exchange (NSE) is the nation's most prominent stock exchange.

Australia's National Stock Exchange is the nation's second-largest stock exchange. Also known as NSX, it specializes in 澳洲幸运5官方开奖结果体彩网:growth companies.

What Is the National Stock Exchange (NSE)?

The "National Stock Exchange (NSE)" today most often refers to India's National Stock Exchange, which is India's largest stock exchange and the sixth-largest stock exchange in the world by market cap as of December 2023.

What Is the Largest Stock Exchange in the World?

The largest stock exchange in the world by market cap is the New York Stock Exchange. Prominent companies listed on the exchange include 3M, Bank of America, AT&T, Berkshire Hathaway, and Ford.

Are the Nasdaq and the NYSE the Same?

No, the Nasdaq and the NYSE are not the same. They are two separate stock exchanges with diffeꦅrent listed companies and have different listing requirements.

The Bottom Line

The National Stock Exchange in♈ the U.S. was the first exchange to fully adopt the use of electronic trading. It was purchased by the N﷽ew York Stock Exchange and now operates as NYSE National.

Article Sources

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