Capitalisation On Nyse Peaks At $7.3 Trillion
Total market capitalisation on the New York Stock Exchange (NYSE) reached a record $7.3 trillion, an increase of $1.3 trillion from the previous year's mark. Also, total worldwide capitalisation of all NYSE-listed companies totalled $9.2 trillion.
According to the annual report of the bourse, during the year 1996, as many as 279 new companies joined the NYSE family, bringing the total to 2,907 at the year-end. Significantly, 59 non-US companies joined the ranks - bringing the total roster of non-US companies listed to 290.
The exchange has commenced focussing on listing of overseas companies. Top NYSE officials were on a four-day visit to the country last week to study the growth of Indian capital markets since liberalisation.
The total value of trading reached a new high of $4.1 trillion, an increase of roughly $1 trillion over the previous year. More than 60 per cent of all new equity capital raised for US-based initial public offerings were raised through this exchange.
The indices like the Dow Jones, the S&P 500 and the NYSE Composite Index also posted moderate gains. During the year, the Dow Jones Industrial Average rose 26 per cent to 6448.27 - its sixth consecutive annual increase. While the broad-based S&P 500 Index rose 20 per cent to 740.74, the NYSE Composite Index rose 19 per cent finishing the year at 392.30. Investors committed $221.7 billion net new dollars to equity and balanced funds in 1996.
The NYSE protects the interests of all participants by safeguarding, first and foremost, the smallest and least sophisticated investor. State-of- the-art technology aids the NYSE professionals assigned for market surveillance, member firm regulation, and enforcement as officials monitor every trade and oversee compliance.
The exchange disciplines its members when necessary, reports violations to regulatory agencies, and takes an active role in informing and educating market participants - all in the interest of ensuring the quality and integrity of the market place.
The exchange in 1996 upgraded the state-of-the-art systems that supported the regulatory programmes. The NYSE enhanced the precision of Stockwatch, which monitors every trade on the exchange floor.
It also increased the speed and efficiency of its Automated Search and Match system which co-relates data on 1.5 million professionals with customer information on 75,000 companies to identify individuals who may be connected to suspicious trading.
The exchange further completed a roll-out of its Specialist Performance Measurement System which enables the NYSE to evaluate specialist firms systematically for the first time.
Investors saved $356 million in 1996 with NYSE Prime price improvement. NYSE Prime enables member firms to determine exactly how much the auction market saves their customers by matching buy and sell orders.