Executive Summary

The New York Stock Exchange is a stock exchange New York City is the
world's largest stock exchange by market capitalization. The NYSE is
operated by NYSE Euro next, which was formed by the NYSE's 2007
merger with the fully electronic stock exchange Euro next.
On the trading floor, the NYSE trades in a continuous auction format,
where traders can execute stock transactions on behalf of investors. They
will gather around the appropriate post where a specialist broker, who is
employed by an NYSE member firm acts as an auctioneer in an open
outcry auction market environment to bring buyers and sellers together and
to manage the actual auction.
American Stock Exchange (AMEX) is an American stock exchange
situated in New York. AMEX was a mutual organization, owned by its
members.
NASDAQ (National Association of Securities Dealers Automated
Quotations) is an American stock exchange. It is the largest electronic
screen-based equity securities trading market in the United States and
fourth largest by market capitalization in the world. NASDAQ indices are
NASDAQ-100, NASDAQ Biotechnology Index, NASDAQ Composite
and NASDAQ Bank.
The Dow Jones Global Indexes is a family of international equity indexes,
including world, region, and country indexes and economic sector, market
sector, industry-group, and subgroup indexes.
THE DOW JONES AVERAGES consist of Industrial Average referred to
as the Industrial Average, Transportation Average is a U.S. stock market
index of the transportation sector, and is the most widely recognized gauge
of the American transportation sector, Utility Average is a stock index that
keeps track of the performance of 15 prominent utility companies and
Composite Average is a stock index that tracks 65 prominent companies.
The Tokyo Stock Exchange or TSE for short, is located in Tokyo, Japan
and is the second largest stock exchange in the world by aggregate market
capitalization of its listed companies, second only to the New York Stock
Exchange. The Tokyo Stock Exchange had 2,414 listed companies with a
combined market capitalization of US$3.1 trillion as of May 2010.

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 Table of Content

PAGE NO#

1. NEW YORK STOCK EXCHANGE……………………………. 3

I. Introduction………………………………………………... 3
II. Trading…………………………………………………….. 3
III. NYSE Composite Index…………………………………… 4
IV. NYSE indices……………………………………………… 4

2. AMERICA STOCK EXCHANGE………………………………. 5

3. NASDAQ………………………………………………………… 6
I. Introduction………………………………………………… 6
II. NASDAQ INDICES……………………………………….. 6

4. THE DOW JONES AVERAGES……………………………….. 7

I. Dow Jones Global Indexes………………………………… 7
II. Dow Jones Industrial Average……………………………... 7
III. Dow Jones Transportation Average………………………... 8
IV. Dow Jones Utility Average………………………………… 8
V. Dow Jones Composite Average……………………………. 8

5. TOKYO STOCK EXCHANGE…………………………………. 9

I. Introduction………………………………………………… 9
II. Organization…………………………………………. 9
III. Major functions……………………………………... 10
IV. Alliances……………………………………………………. 11

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 Chapter # 1
1. New York Stock Exchange (NYSE)
1.1. Introduction:

The New York Stock Exchange (NYSE) is a stock exchange New York City, USA. It is
the world's largest stock exchange by market capitalization of its listed companies at
US$12.25 trillion as of May 2010. Average daily trading value was approximately
US$153 billion in 2008.

The NYSE is operated by NYSE Euro next, which was formed by the NYSE's 2007
merger with the fully electronic stock exchange Euro next.

NYSE Euronext, the holding company created by the combination of NYSE Group, Inc.
and Euronext N.V., was launched on April 4, 2007. As the world's leading and most
liquid equities exchange group, NYSE Euronext powers the exchanging world and is
comprised of equities and derivatives exchanges across the United States and Europe
which trade cash equities, futures, options, fixed-income and exchange-traded products.

1.2. Trading:

The New York Stock Exchange (sometimes referred to as "the Big Board") provides a
means for buyers and sellers to trade shares of stock in companies registered for public
trading. The NYSE is open for trading Monday through Friday between 9:30am – 4:00pm
ET, with the exception of holidays declared by the Exchange in advance.

On the trading floor, the NYSE trades in a continuous auction format, where traders can
execute stock transactions on behalf of investors. They will gather around the appropriate
post where a specialist broker, who is employed by an NYSE member firm (that is, he/she
is not an employee of the New York Stock Exchange), acts as an auctioneer in an open
outcry auction market environment to bring buyers and sellers together and to manage the
actual auction. They do on occasion (approximately 10% of the time) facilitate the trades
by committing their own capital and as a matter of course disseminate information to the
crowd that helps to bring buyers and sellers together.

As of January 24, 2007, all NYSE stocks can be traded via its electronic Hybrid Market
(except for a small group of very high-priced stocks). Customers can now send orders for
immediate electronic execution or route orders to the floor for trade in the auction market.
In the first three months of 2007, in excess of 82% of all order volume was delivered to
the floor electronically.

The right to directly trade shares on the exchange is conferred upon owners of the 1366
"seats". The term comes from the fact that up until the 1870s NYSE members sat in chairs
to trade. In 1868, the number of seats was fixed at 533, and this number was increased
several times over the years. In 1953, the exchange stopped at 1366 seats. These seats are

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a sought-after commodity as they confer the ability to directly trade stock on the NYSE.
Seat prices have varied widely over the years, generally falling during recessions and
rising during economic expansions. The most expensive inflation-adjusted seat was sold
in 1929 for $625,000, which, today, would be over six million dollars. In recent times,
seats have sold for as high as $4 million in the late 1990s and $1 million in 2001. In 2005,
seat prices shot up to $3.25 million as the exchange was set to merge with Archipelago
and become a for-profit, publicly traded company. Seat owners received $500,000 cash
per seat and 77,000 shares of the newly formed corporation. The NYSE now sells one-
year licenses to trade directly on the exchange.

1.3. NYSE Composite Index

In the mid-1960s, the NYSE Composite Index (NYSE: NYA) was created, with a base
value of 50 points equal to the 1965 yearly close. This was done to reflect the value of all
stocks trading at the exchange instead of just the 30 stocks included in the Dow Jones
Industrial Average. To raise the profile of the composite index, in 2003 the NYSE set its
new base value of 5,000 points equal to the 2002 yearly close.

1.4. NYSE indices:

NYSE indices closely reflect today's market as NYSE-listed companies account for a
substantial portion of the world's economy. Included in these indices are NYSE-listed
companies which represent 79.47% and 45.40% of the available market capitalization of
all publicly traded companies in the United States and around the world, respectively, as
of year-end 2008.

The NYSE's objectives in developing proprietary indices are to showcase the strength of
companies listed on the Exchange, and to provide investors and issuers with benchmarks
that measure the world's largest marketplace as well as its key segments. The New York
Stock Exchange is home to many of the world's most well-established and high-quality
companies that meet NYSE's higher listing standards with respect to profitability and
company size.

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 Chapter # 2
2. AMERICA STOCK EXCHANGE (AMEX)
NYSE Amex Equities, formerly known as the American Stock Exchange (AMEX) is an
American stock exchange situated in New York. AMEX was a mutual organization,
owned by its members. Until 1953 it was known as the New York Curb Exchange. On
January 17, 2008 NYSE Euro next announced it would acquire the American Stock
Exchange for $260 million in stock. On October 1, 2008, NYSE Euronext completed
acquisition of the American Stock Exchange. Before the closing of the acquisition, NYSE
Euronext announced that the Exchange would be integrated with the Alternext European
small-cap exchange and renamed the NYSE Alternext U.S. In March 2009, NYSE
Alternext U.S. was changed to NYSE Amex Equities.

Chapter # 3
3. NASDAQ
3.1. Introduction:
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock
exchange. "NASDAQ" originally stood for "National Association of Securities Dealers
Automated Quotations," but the exchange's official stance is that the acronym is obsolete.
It is the largest electronic screen-based equity securities trading market in the United
States and fourth largest by market capitalization in the world. With approximately 3,700
companies and corporations, it has more trading volume than any other stock exchange in
the world.

3.2. NASDAQ INDICES:

• NASDAQ-100: - The NASDAQ-100 is a stock market index of 100 of the largest

non-financial companies listed on the NASDAQ. It is a modified market value-
weighted index. The companies' weights in the index are based on their market
capitalizations, with certain rules capping the influence of the largest components.
It does not contain financial companies, and includes companies incorporated
outside the United States. Both of those factors differentiate it from the Dow Jones
Industrial Average, and the exclusion of financial companies distinguishes it from
the S&P 500 Index.

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 • NASDAQ Biotechnology Index: - The NASDAQ Biotechnology Index includes
securities of NASDAQ-listed companies classified according to the Industry
Classification Benchmark as either Biotechnology or Pharmaceuticals.

• NASDAQ Composite: - The Nasdaq Composite is a stock market index of the

common stocks and similar securities (e.g. ADRs, tracking stocks, limited
partnership interests) listed on the NASDAQ stock market, meaning that it has
over 3,000 components. It is highly followed in the U.S. as an indicator of the
performance of stocks of technology companies and growth companies. Since
both U.S. and non-U.S. companies are listed on the NASDAQ stock market, the
index is not exclusively a U.S. index.

• NASDAQ Bank: - The NASDAQ Bank Index is a broad-based capitalization-

weighted index of domestic and foreign common stocks of banks that are traded
on the NASDAQ National Market System (NASDAQ/NMS) as well as the Small
Cap Market. The index was developed with a base level of 100 as of February 5,
1971. The parent index is CCMP.

Chapter # 4
4. THE DOW JONES AVERAGES
4.1. Dow Jones Global Indexes –
The Dow Jones Global Indexes (DJGI) is a family of international equity indexes,
including world, region, and country indexes and economic sector, market sector,
industry-group, and subgroup indexes. The indexes are constructed and weighted using
free-float market capitalization. They provide 95 percent market capitalization coverage
of developed markets and emerging markets. In all, more than 3000 DJGI indexes provide
real time and historical data on more than 5500 companies around the world. Market
capitalization is float-adjusted. Indexes for the United States, Canada, Japan, Hong Kong,
Singapore, and Australia/New Zealand are constructed to cover 95 percent of market
capitalization at the country level. A single European index covers an aggregate of all
Western European nations, also representing 95 percent of the aggregate market. An
Emerging Markets Index represents 10 countries in Latin America and Asia. Each of
these three groups offers large-cap, mid-cap, and small-cap indexes. Dow Jones Style
Indexes are built as subsets of the Dow Jones U.S. Total Market Index. The DJGI family
includes indexes for 10 economic industries, 19 super sectors, 41 sectors, and 114 sub
sectors. The indexes are reviewed quarterly.

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4.2. Dow Jones Industrial Average:
The Dow Jones Industrial Average, also referred to as the Industrial Average, the Dow
Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices
created by Wall Street Journal editor and Dow Jones & Company co-founder Charles
Dow. The average is named after Dow and one of his business associates, statistician
Edward Jones. It is an index that shows how 30 large, publicly owned companies based in
the United States have traded during a standard trading session in the stock market.[1] It
is the second oldest U.S. market index after the Dow Jones Transportation Average,
which Dow also created.
The Industrial portion of the name is largely historical, as many of the modern 30
components have little or nothing to do with traditional heavy industry. The average is
price-weighted, and to compensate for the effects of stock splits and other adjustments, it
is currently a scaled average. The value of the Dow is not the actual average of the prices
of its component stocks, but rather the sum of the component prices divided by a divisor,
which changes whenever one of the component stocks has a stock split or stock dividend,
so as to generate a consistent value for the index.
Along with the NASDAQ Composite, the S&P 500 Index, and the Russell 2000 Index,
the Dow is among the most closely watched benchmark indices tracking targeted stock
market activity. Although Dow compiled the index to gauge the performance of the
industrial sector within the American economy, the index's performance continues to be
influenced by not only corporate and economic reports, but also by domestic and foreign
political events such as war and terrorism, as well as by natural disasters that could
potentially lead to economic harm. Components of the Dow trade on both the NASDAQ
OMX and the NYSE Euronext, two of the largest stock market companies. Derivatives of
the Dow trade on the Chicago Board Options Exchange and through CME Group, the
world's largest futures exchange company, which owns 90% of the indexing business
founded by Dow Jones, including the Industrial Average.

4.3. Dow Jones Transportation Average:

The Dow Jones Transportation Average (also called the "Dow Jones Transports" DJTA)
is a U.S. stock market index of the transportation sector, and is the most widely
recognized gauge of the American transportation sector. It is the oldest stock index still in
use, even older than its better-known relative, the Dow Jones Industrial Average (DJIA).
The index is a running average of the stock prices of twenty transportation corporations,
with each stock's price weighted to adjust for stock splits and other factors. As a result, it
can change at any time the markets are open. The figure mentioned in news reports is
usually the figure derived from the prices at the close of the market for the day.

4.4. Dow Jones Utility Average:

The Dow Jones Utility Average (also known as the "Dow Jones Utilities") is a stock index
that keeps track of the performance of 15 prominent utility companies.

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4.5. Dow Jones Composite Average:
The Dow Jones Composite Average is a stock index that tracks 65 prominent companies.
The average's components are every stock from the Dow Jones Industrial Average, the
Dow Jones Transportation Average, and the Dow Jones Utility Average.

Chapter # 5
5. TOKYO STOCK EXCHANGE

5.1. Introduction:
The Tokyo Stock Exchange or TSE for short, is located in Tokyo, Japan and is the
second largest stock exchange in the world by aggregate market capitalization of its listed
companies, second only to the New York Stock Exchange. The Tokyo Stock Exchange
had 2,414 listed companies with a combined market capitalization of US$3.1 trillion as of
May 2010.

5.2. ORGANIZATION:
The Tokyo Stock Exchange is a stock corporation that provides an Exchange Securities
Market under authorization of the Prime Minister.
The Tokyo Stock Exchange was formerly a membership organization. However, a
revision of the Securities and Exchange Law allowed a stock exchange to transform its
organizational structure into a stock corporation so, on November 1st 2001, the Stock
Exchange became a stock corporation.
The management of the Exchange Securities Market is required to be a highly public
matter. Therefore, the management aims are stipulated in the Tokyo Stock Exchange's
constitution as, "In order to contribute towards the protection of the public interest and

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investors, the trading of securities must be carried out in a fair and efficient manner." It is
also clearly stated in the constitution that the TSE shall continue to maintain a high level
of publicity concerning its management, even after the transformation into a stock
corporation.

5.3. MAJOR FUNCTIONS:

TSE is a central institution in the secondary market and its major functions are as follows.

1. Provision of a Market Place

Trading which takes place on the Tokyo Stock Exchange progresses continuously
throughout each trading session using computerized trading systems, in compliance with
Exchange rules. Transaction prices are available to the public.

2. Monitoring trading
Real-time trading on the computer trading systems as well as completed transactions are
carefully monitored in order to keep trading in line with Exchange rules and properly
determine prices. Upon discovery of any rule violation, improper conduct or unfair
trading, appropriate measures are taken.

3. Listing securities
Securities which are traded on TSE adhere to listing criteria established and approved by
the TSE.

4. Monitoring listed securities

TSE continuously monitors listed companies and securities in order to maintain high
listing standards. TSE can suspend the trading of, or delist, a security if listing criteria are
not met.
In order to ensure investor protection and fair and transparent transactions, TSE requires
the accurate, swift, and fair disclosure of corporate and security information. Rules
relating to the disclosure of corporate information are stated in the Securities and
Exchange Law.

TSE maintains guidelines for the timely disclosure of important corporate information
resulting from business activities. The TSE also provides a filing system which facilitates
investor access to disclosure documents.

5. Supervision of Trading Participants

Trading participants are those who conduct transactions on the TSE market. In order to
guarantee the safety of transactions and to fulfil to the utmost the public purpose of the
TSE, they must maintain a high level of quality and a deep sense of confidence. In order
to achieve this, an examination system is being introduced at the Exchange whereby strict
investigations are carried out to assess the state of prospective participants' businesses and
assets at the time of their application for trading permission.

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5.4. Alliances:

The London Stock Exchange (LSE) and the TSE are developing jointly traded products
and share technology, marking the latest cross-border deal among bourses as international
competition heats up. The TSE is also looking for some partners in Asia, and more
specifically is seeking an alliance with the Singapore Exchange (SGX), which is
considered as becoming a leading financial hub in the Asia-Pacific region. Recently, some
rumors close to the deal suggest that the TSE is preparing for a takeover of the SGX, or at
least take a major stake, in the first semester of 2008. The TSE has already acquired a 5%
stake in the SGX as of June 2007, deemed to be only the beginning of greater
participation.
In July 2008 the London Stock Exchange (LSE) and the TSE announced a new joint
venture Tokyo-based market, which will be based on the LSE's Alternative Investment
Market (AIM)

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