ECONOMICS REPORT - Stocks: Proposed Deal Aims to Ready N.Y.S
ECONOMICS REPORT - Stocks: Proposed Deal Aims to Ready N.Y.S.E. for Electronic Future
By Mario Ritter
Broadcast: Friday, April 29, 2005
I'm Gwen Outen with the VOA Special English Economics Report.
In an age of electronic trading, most activity on the world's biggest stock market still takes place on a noisy trading floor. The New York Stock Exchange uses a system of traders called specialists to bring together buyers and sellers.
The exchange has used this system for over two centuries. John Thain is the chief executive officer. He says the exchange must do more to compete in what he calls a "high-speed electronically connected world."
Last week Mister Thain announced an agreement to combine the New York Exchange with Archipelago Holdings. Archipelago was one of the first companies to create an electronic trading system. Today, Archipelago carries out one-fourth of the trades on the NASDAQ, the second largest stock exchange in the United States.
Under the proposed deal, the New York Stock Exchange would use two systems: one based on people, the other on computers. Archipelago shareholders 2 would own thirty percent of a combined company called the N.Y.S.E. Group. The N.Y.S.E. Group would be a publicly traded company. Currently, the New York Stock Exchange operates as a non-profit corporation.
Members of the exchange would own seventy percent of the new company. Members are individuals or companies that own seats on the exchange. The deal requires approval by these members and by shareholders in Archipelago. The Securities and Exchange Commission in Washington must also agree.
Not everyone likes the proposal. Investor 3 Kenneth Langone served on the board of directors of the New York Stock Exchange. He has criticized the continued use of specialists. But he says the plan does not provide enough value for exchange members. Mister Langone has organized a group to consider moves such as a competing offer.
Only a few years ago, the current trading system seemed unlikely to change. At that time, Richard Grasso headed the exchange. He supported the use of specialists. But Mister Grasso was forced out of his job in September of two thousand three in a dispute over his pay.
His replacement 4, John Thain, came to the Big Board from the Goldman Sachs Group. That investment bank has been advising both the exchange and Archipelago in their merger 5 negotiations 6. Goldman is also a member of the exchange and a shareholder 1 in Archipelago.
This VOA Special English Economics Report was written by Mario Ritter. I'm Gwen Outen.
- The account department have prepare a financial statement for the shareholder.财务部为股东准备了一份财务报表。
- A shareholder may transfer his shares in accordance with the law.股东持有的股份可以依法转让。
- The meeting was attended by 90% of shareholders. 90%的股东出席了会议。
- the company's fiduciary duty to its shareholders 公司对股东负有的受托责任
- My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
- The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。
- We are hard put to find a replacement for our assistant.我们很难找到一个人来代替我们的助手。
- They put all the students through the replacement examination.他们让所有的学生参加分班考试。
- Acceptance of the offer is the first step to a merger.对这项提议的赞同是合并的第一步。
- Shareholders will be voting on the merger of the companies.股东们将投票表决公司合并问题。
- negotiations for a durable peace 为持久和平而进行的谈判
- Negotiations have failed to establish any middle ground. 谈判未能达成任何妥协。