The US Stock Market

EuroAmerican

The US Stock Market

Seal of the SEC

The New York Stock Exchange (NYSE) and the NASDAQ Stock Exchange (NASDAQ) are the most respected Stock Markets in the world. Investors show daily their high confidence in the United States Stock Market System.

In 1934, the United States Government established the United States Securities and Exchange Commission (SEC), reacting to the Great Crash of 1929. The main reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting. The SEC was given the power to license and regulate the US stock exchanges. Also, the SEC is directly in charge of regulating all brokerage firms and stock brokers that work at those firms. The enforcement authority given by Congress allows the SEC to bring civil enforcement actions against individuals or companies found to have committed accounting fraud, provided false information, or engaged in insider trading or other violations of the securities law. The SEC also works with criminal law enforcement agencies to prosecute individuals and companies alike for offenses which include a criminal violation.

Companies like WorldCom, Enron or Siemens (Germany) have alreday experienced the effectiveness of the enforcement authority of the SEC.

The SEC decides about the approval of the applications of American and Non-US Companies that desire to go public on one of the American Stock Exchanges.

The SEC endeavors to protect the general public from fraud and market manipulation and insures the full disclosure of facts and information of any public financial product.

The NASDAQ (NASDAQ OMX Group, Inc.) NASDAQ

The NASDAQ (National Association of Securities Dealers Automated Quotation System) is the largest electronic screen-based equity securities trading market in the United States. It was founded in 1971 by the National Association of Securities Dealers (NASD), who sold their interests in 2000 and 2001. It is now owned and operated by the NASDAQ OMX Group.

With approximately 3,900 companies representing $5.3 trillion in market value, NASDAQ has more trading volume per day (approximately 2 billion shares daily) than any other stock exchange in the world. NASDAQ handles more IPOs (over one thousand since 2000) than any other U.S. exchange. Two out of three IPOs of all U.S. markets were listed on NASDAQ (2007). NASDAQ was the biggest stock exchange in the world in terms of company listings before the Bombay Stock Exchange (BSE) of India consolidated to become "Number One" with almost 4,900 company listings.

In January 2008, NASDAQ had 49% of U.S. equities market share.

NASDAQ also offers

• The world’s largest IT industry exchange, with a total market value in the IT sector at over $2 trillion.
• The world’s largest biotech industry exchange, with total market value at almost $250 billion.
• The world’s largest paper product industry (part of the materials sector) exchange at a market value over $50 billion.

Currently, there are 300 Non-US Companies from 34 countries listed on the NASDAQ Stock Exchange. The list includes well-established Corporations like Volvo (VOLVY), Logitech (LOGI), Reuters (RTRSY), Fuji Photo Film (FUJY) and Nissan (NSANY); but also exotic companies like Lihir Gold Ltd from Papua New Guinea (LIHRY).

This link provides you with detailed information about all Non-US Companies listed on NASDAQ.

Entrance of the NYSE

The New York Stock Exchange (NYSE Euronext)

NYSE Euronext, the holding company created by the combination of NYSE Group, Inc. and Euronext N.V. (Paris), was launched on April 4, 2007. NYSE Euronext operates the New York Stock Exchange and offers the most diverse array of financial products and services.

The New York Stock Exchange, whose history goes back to 1792, is the largest stock exchange in the world by dollar volume with over 2,800 listed companies. They represent a combined $27.1 trillion in total global market capitalization. Its equity exchanges transact an average daily trading value of approx. $141 billion.

On January 17, 2008, NYSE Euronext announced it would acquire the American Stock Exchange (AMEX) for $260 million in stock.

The New York Stock Exchange lists approximately 421 Non-US Companies valued $11.4 trillion. This includes world-renowned Corporations like Siemens (SI), Deutsche Telekom (DT), British Airways (BAB), Fiat (FIA) and Sony (SNE).

This link provides you with detailed information about about all Non-US Companies listed on NYSE.