The NASDAQ is all automatic right? So why doesn't the New York Stock Exchange change and do that too? Wouldn't it make it more efficient?
2007-03-15 14:38:57 · 3 answers · asked by jared 1 in Business & Finance ➔ Investing
It is changing to do that aty this very moment.
It has a floor because ti is an exchange. An exchange is a physical place. Nasdaq is not technically an exchange, it is a marketplace.
The reason for the floor is historical. Back in the late 1700's, traders would gather near a tree by what is now wallstreet to trade interests in companies. Years later, they went inside as it is sometime cold, hot, rainy and snowy. Hence an exchange with a trading floor.
Goto www.NYSE.com and read up on the Hybrid market.
2007-03-15 14:54:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Some of the trading on the NYSE is done electronically and customers can choose whether to have orders executed on the floor or electronically.
They choose to have orders executed on the floor because larger or more complex orders need the human touch. The floor broker can get a sense of interest and adjust his execution. As someone once said, "sometimes the best way to get your order filled is to shut up". The computer never shuts up.
2007-03-15 15:08:15 · answer #2 · answered by Box815 3 · 0⤊ 0⤋
Because they used to trade on the roof but the traders all got wet when it rained or snowed, so they moved them indoors. Even then, before there was a floor, the traders all wandered around in the basement. It was a mess. So they put in a floor.
Glad I could help you out. Any more questions?
2007-03-15 15:08:26 · answer #3 · answered by Anonymous · 1⤊ 1⤋