How to start a material stock exchange?
I am thinking in the region of creating a small stock exchange in my city.
How do you determine if another stock exchange is needed or not? We already hold the NYSE, NASDAQ, AMEX. Why create another stock exchange? I be thinking, what if terrorists try to blow up New York. Then the stock bazaar is unresponsive. We have need of a backup stock exchange contained by baggage at hand is some big trouble within NY.
How do you create a stock exchange? Do you enjoy to enjoy more than a million dollars to start? And do you enjoy to be incorporated efficient to start? What characteristics of computers and programs are needed that brand a stock flea market function? Can you refer me to a book that explains in detail how the NASDAQ or NYSE get started and how it works?
Any information help! Thank you.
I've read Wall Street, The Story of the Stock Exchange by Dorothy Sterling. But this book be terribly brief, written for children I guess. ;)
Answers:
Small exchanges do within reality exist, but rear legs up exchanges are superfluous. You would plausible necessitate a nuclear exchange to eradicate the exchange process contained by the United States. One of the surprises of 9/11 to oodles firms be that they didn't in reality want their NY bureau. They functioned fine short it.
You will want several million to start. You should not look at the NYSE or the NASDAQ for cues. They already without blemish cover their market.
What you requirement to look at are the ECN's such as Island and how they started and the Arizona Stock Exchange, which only just substandard and go out of business. It have a wonderful business model that not a soul considered necessary.
If I be you, I would not consider an exchange. You would own to provide something which is not already provided or provide it far more proficiently.
You cannot crack into the NASDAQ open market because it is protected by decree. It also isn't an exchange but a bit a quotation system.
You do not inevitability to be incorporated, per se, but you cannot be a proprietorship any. All of the programs are proprietary so you would entail to write your own.
You can't start another stock exchange as the regulators wouldn't allow it.
BUT IF IT WAS ALLOWED
It would cost hundreds of millions of dollars to set up an exchange that would compete near the NYSE, or Nasdaq, or Amex
Any stock exchange have to be controlled not by a single indiviaul or small group, but by a mutual group of investors and/or business relations who own a desire and a entail.
A stock exchange surrounded by the US have to be approved by the SEC (Securities and Exchange Commission) and in actual fact operate on a phone and rag system. Computers are a foreign technology to most stock exchanges.
Stock Exchanges work by companies wanting to record themselves and get rid of a portion of their effectiveness on the unseal flea market for other associates (public) to invest.
The exchange works by respectively investor have a broker, who will offer instructions to a trader who is on the floor of the exchange. As an investor make an proffer to buy or swell, the trader physically walk over to another trader who holds the stock, and they negotiate a price base on the ask price and the buy price.
Because of the complexity of how a Stock Exchange works and the regulations that govern it, unless you own a big group of investors or companies wanting to set up a 'micro-exchange' you would be unlikely to put together this appear by yourself.
You can bet for a certitude that after 9/11 the American Exchanges and other world market took this as a shot across the bow and own by immediately taken precautions against this and enjoy more than credible set up subsidiary operating locations. Considering the great hurry and necessity of the intercontinental cutback respectively one of these institutions would enjoy to be complete idiots IF they hold not however done so and surrounded by effect no lesson be widely read to protect against another attack.
There is no requirement, in reality here are too frequent world broad exchanges and they are consolidating at the moment.
The NASDAQ is an adjectives electronic exchange, here is no physical location. The NYSE is going adjectives electronic. They are not tied to NYC.
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How do you determine if another stock exchange is needed or not? We already hold the NYSE, NASDAQ, AMEX. Why create another stock exchange? I be thinking, what if terrorists try to blow up New York. Then the stock bazaar is unresponsive. We have need of a backup stock exchange contained by baggage at hand is some big trouble within NY.
How do you create a stock exchange? Do you enjoy to enjoy more than a million dollars to start? And do you enjoy to be incorporated efficient to start? What characteristics of computers and programs are needed that brand a stock flea market function? Can you refer me to a book that explains in detail how the NASDAQ or NYSE get started and how it works?
Any information help! Thank you.
I've read Wall Street, The Story of the Stock Exchange by Dorothy Sterling. But this book be terribly brief, written for children I guess. ;)
Answers:
Small exchanges do within reality exist, but rear legs up exchanges are superfluous. You would plausible necessitate a nuclear exchange to eradicate the exchange process contained by the United States. One of the surprises of 9/11 to oodles firms be that they didn't in reality want their NY bureau. They functioned fine short it.
You will want several million to start. You should not look at the NYSE or the NASDAQ for cues. They already without blemish cover their market.
What you requirement to look at are the ECN's such as Island and how they started and the Arizona Stock Exchange, which only just substandard and go out of business. It have a wonderful business model that not a soul considered necessary.
If I be you, I would not consider an exchange. You would own to provide something which is not already provided or provide it far more proficiently.
You cannot crack into the NASDAQ open market because it is protected by decree. It also isn't an exchange but a bit a quotation system.
You do not inevitability to be incorporated, per se, but you cannot be a proprietorship any. All of the programs are proprietary so you would entail to write your own.
You can't start another stock exchange as the regulators wouldn't allow it.
BUT IF IT WAS ALLOWED
It would cost hundreds of millions of dollars to set up an exchange that would compete near the NYSE, or Nasdaq, or Amex
Any stock exchange have to be controlled not by a single indiviaul or small group, but by a mutual group of investors and/or business relations who own a desire and a entail.
A stock exchange surrounded by the US have to be approved by the SEC (Securities and Exchange Commission) and in actual fact operate on a phone and rag system. Computers are a foreign technology to most stock exchanges.
Stock Exchanges work by companies wanting to record themselves and get rid of a portion of their effectiveness on the unseal flea market for other associates (public) to invest.
The exchange works by respectively investor have a broker, who will offer instructions to a trader who is on the floor of the exchange. As an investor make an proffer to buy or swell, the trader physically walk over to another trader who holds the stock, and they negotiate a price base on the ask price and the buy price.
Because of the complexity of how a Stock Exchange works and the regulations that govern it, unless you own a big group of investors or companies wanting to set up a 'micro-exchange' you would be unlikely to put together this appear by yourself.
You can bet for a certitude that after 9/11 the American Exchanges and other world market took this as a shot across the bow and own by immediately taken precautions against this and enjoy more than credible set up subsidiary operating locations. Considering the great hurry and necessity of the intercontinental cutback respectively one of these institutions would enjoy to be complete idiots IF they hold not however done so and surrounded by effect no lesson be widely read to protect against another attack.
There is no requirement, in reality here are too frequent world broad exchanges and they are consolidating at the moment.
The NASDAQ is an adjectives electronic exchange, here is no physical location. The NYSE is going adjectives electronic. They are not tied to NYC.