The New York Stock Exchange Group (NYSE Group) manages the world's largest cash marketplace for stocks and equity options. The NYSE Group operates both the New York Stock Exchange (NYSE) and NYSE Arca (formerly known as the Pacific Exchange).
Using independent calculations and insights based on data drawn from source material on nyse.com, here are interesting statistics that reveal the vast international trade opportunities that the NYSE offers. This article focuses on the NYSE Group's Listed Company Directory and its February 2, 2007 news release "Fourth Quarter and Full Year 2006 Financial Results".
In 2006, a daily average of 2.3 billion shares valued at US$86.8 billion were traded on NYSE Group exchanges. Over 3,500 companies have stocks listed on the NYSE, representing a total global market capitalization of US$26.5 trillion at December 31, 2006.
Foreign Companies Listed On The NYSE
Stocks of non-U.S. firms play an increasingly important role on America's top stock exchange. At the end of 2006, the NYSE listed 451 stocks from 46 countries other than the U.S. for a market capitalization of some US$10 trillion.
Outside of international stocks listed on the NYSE, the NYSE Group has initiated a set of mergers and alliances that will eventually enable investors to instantly trade stocks from around the world.
Euronext NYSE
The NYSE Group has targeted the end of March 2007 to complete its acquisition of Euronext, a trans-border European stock exchange that trades stocks and financial futures from exchanges in Belgium, France, the United Kingdom, the Netherlands and Portugal. Once approved by pertinent shareholders and regulators, the newly-formed Euronext NYSE will enable investors to trade company shares listed either on the NYSE or in Europe.
After Euronext NYSE, the next logical step looks to be for the NYSE Group to propose an alliance with the London Stock Exchange (LSE).
Tokyo Stock Exchange (TSE) Alliance
The TSE is is Japan's leading exchange for cash equities and derivatives. Stock trading volume on the TSE reached 502 billion shares in 2006, with an average daily trading volume of over 2 billion shares. At the end of January 2007, NYSE Group's chief executive signed a letter of intent with TSE's president to establish a strategic alliance to enable investors to electronically trade both Tokyo-listed and NYSE-listed stocks.
Top NYSE Stock Pick Is NYSE Group
The NYSE Group is a company with operating profit margins near 35%. The company generates revenues from trade activity, initial and annual company listing fees, data processing fees, market information fees, regulatory fees and administrative fees. The NYSE Group also sells annual trading licences for about US$50,000, and collects regulatory fines.
The NYSE Group also has its own stock (NYX on NYSE). Given NYSE's diversified sources of trade revenue and the company's leading role in bringing international stock trade to investor computer screens around the globe, NYX at a stock price of US$81 may itself represent international trade's top stock pick for 2007.
For more information, check out nyse.com.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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