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WCC Visits Wall Street
By Professor Richard Hyland Members of WCC’s Global Business Club visited the NY
Stock Exchange recently at the invitation of WCC Alumnus and former NYSE
Trader Marc Ruppenstein.
Ruppenstein, who is currently a studying at Columbia University, invited the
small group to a private guided tour of the floor of the venerable exchange
known for its raucous “open cry” system of buying and selling stocks.
The exchange, which traces its roots back to the late 1700’s, was
known for its high-energy activity in which stock traders would shove each
other around on the floor, use hand signals, and shout out orders.
This system has since been replaced by a more mild mannered approach
that increasingly relies on computer systems to conduct stock trades. Students were treated to an in-depth explanation of the
intricacies of a securities transaction by Bank of America Market Maker,
John McNierney. “The exchange
has undergone tremendous changes in the past decade with the advent of
computerized trading systems. It
is really a different world these days.” Said McNierney.
“In the past, I used to have more leeway in terms of what trades
happened and when they were executed – I could come in and react to what was
happening. Things happen so
quickly now, that I have to come in with some ideas on what I want to do
that day. I have to be more
proactive than before.” The Club, which includes students Omari Byfield, Karine
Pitton, James Kane, Beltino Goncalves, Elma Kurtovic, Sarah Winston, Di
Tang, Kwame Duodu, and David Kwon, were accompanied by Mamaroneck HS student
Steven Hyland, and Business Professor Richard Hyland. “This is my first time vising the floor of the New
Yorks Stock Exchange” said Professor Hyland.
“Studying business is important, but there is no substitute for
actually getting into the mix with the movers and shakers that make things
happen in the business world.
This was a really great experience for this group and for me.” Earlier that morning, Professor Hyland and Omari
Byfield visited the CME Group’s Commodities trading operation – a merger of
commodities trading firms formerly known as the NY Mercantile Exchange and
the COMEX. The trading floor,
which trades precious metals, like gold, silver, and platinum and other
commodities such as cotton and corn, also deals in derivative securities.
Professor Hyland explains “Derivatives take many forms - most people
are familiar with the term ‘stock options’.
The whole idea of a derivative security is that it derives its value
from something else. In other words, you don’t actually sell gold, silver,
or stocks, but instead one can trade instruments that base their value on
those things. The concept is simple, but the valuing these things and
understanding all of the implications can be quite complex,” he concludes. The half-day trip to Wall Street wrapped up with a few
snapshots of the students near iconic Wall Street landmarks such as the
Federal Building, and the NYSE entrance.
Jim Kane, the President of the Global Business Club said of the trip
“The NYSE trip was a lesson outside the classroom for me and all who
attended. Watching & talking to professional traders and seeing millions of
transactions taking place and feeling the pulse of the financial market was
exhilarating. It was an
excellent opportunity for the Global Business Club.” |
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