Products That The NYSE Offering

 Introduction

The New York Stock Exchange is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City. It is by far the world's largest stock exchange by market capitalization of its listed companies. The NYSE is owned by Intercontinental Exchange, an American holding company. Previously, it was part of NYSE Euronext (NYX), which was formed by the NYSE's 2007 merger with Euronext.

The New York Stock Exchange offers increased access to the capital that companies need to continue innovating and growing, while also placing new requirements. The NYSE also works closely with the management teams at NYSE-listed companies to understand their needs and develop efficient solutions that address the needs of their growing public businesses. The NYSE even provides some investor relations services such as market intelligence, stock insights, investor profiling solutions, corporate surveillance, communication tools, and more. 

Products That The NYSE Offering

Equities

Equity (also known as stocks or shares) is basically a part of the ownership of a company. For example, if my father's food company wants to raise its capital for expansion, and innovation, he can choose to sell the shares of his company and obtain funds from the public. 

NYSE provides a well-regulated market for this kind of need. NYSE regulates and oversees the responsibilities to protect the public investors and also support the business owners to grow their business successfully. NYSE’s also provides a unique market model that deep liquidity and high-quality quotes that lower volatility and the issuers' cost of capital. 

Options

Options are financial instruments that are derivatives based on the value of underlying securities such as stocks. Let's make it easier to understand. If you have an options contract with an issuer, you can choose to sell a certain amount of shares of a particular company or to buy them. That's why it's called options. You have two options and the choice is on you. Depending on the type of contract you hold, an options contract offers the buyer the opportunity to buy or sell the underlying asset. 

Each option contract will have a specific expiration date by which the holder must exercise their option, which means they must make their choices that are bought or sold. One thing that the investors have to pay attention, is the stated price on an option is known as the strike price which means the options owners take their actions under the agreements.

Equity options give an investor the right but not the obligation to buy a call or sell a put at a set strike price prior to the contract’s expiry date. NYSE Arca’s price-time priority model that provides enhanced throughput and encourages market makers to offer the best possible price.

Index options are another way for people to want to follow the bigger market, and make it possible for investors to trade an entire market to seek either profit or protection from price movements in a stock market as a whole.

Exchange-Traded Products

Exchange-traded products (ETPs) are types of securities that track underlying securities such as an index, or other financial instruments. One of the attractive parts of ETPs is they are traded on exchanges similar to stocks meaning their prices can fluctuate from day-to-day. The difference is that the prices of ETPs are derived from the underlying investments that they track.

Exchange-Traded Funds (ETFs) is a very common Exchange-traded product, its fund contains a basket of investments that can include stocks and bonds. An ETF usually tracks an underlying index such as the S&P 500, the Dow, or follow an industry, commodities, or a particular currency. If these underlying index goes down, the ETF goes down as well. In contrast, If these underlying index goes up, the ETF goes up. These products trade throughout the day just as a stock would trade.

Exchange-traded notes (ETNs) also track an underlying index of securities. ETN issuers promise to pay investors the return received from the index they track at the maturity date. However, the ETNs themselves do not actually own any particular assets, the issuers even allow to use the funds to obtain any assets they want. Therefore, ETNs are similar to bonds in that investors receive the return of their original invested amount at maturity, but the ETN does not pay periodic interest payments. Also, investors who buy ETNs do not own any of the securities in the index they track. 

Reference

New York Stock Exchange. (2020, September 04). Retrieved September 05, 2020, from https://en.wikipedia.org/wiki/New_York_Stock_Exchange

The Intercontinental Exchange. (n.d.). Retrieved September 05, 2020, from https://www.nyse.com/index

Chen, J. (2020, March 31). A Look at the Types of Exchange Traded Products (ETPs). Retrieved September 06, 2020, from https://www.investopedia.com/terms/e/exchange-traded-products-etp.asp