The New York Stock Exchange (NYSE) will be presided by a woman for the first time in more than 200 years. Stacey Cunningham, 43, has worked at the NYSE since 1996, when little more than 30 women were among its 1300 employees. Two women are now at the top of the main stock exchanges in the United States – Adena Friedman has been the head of Nasdaq since January 2017.

The NYSE and Nasdaq are considered the most influential stock exchanges in the world. JOCA interviewed Yolanda Fordelone, from Econoweek, and Arthur Moraes, a professor at B3 Educação, to explain what a stock exchange is. Learn more about it below:

What is a stock exchange?
Imagine a street market where buyers and sellers of products are gathered. At the stock exchange, the products are companies’ stocks. Stocks are amounts of capital for a company.

How did the stock market start?
The first stock exchange, as we know it, was started in mid-15th century in Bruges, a city in Belgium, by Van der Buerse. The stock exchange was named after his last name which means “purse”. Buerse would get people together at his house to buy and sell coins and precious metals like silver and gold.

Why do people invest in stocks?
Investors believe that a company will grow, and the investment will be profitable. That is, the amount paid for the stocks will increase in value in the future.

Why do companies list their stocks in the stock exchange?
To raise funds so it can grow, increase profits, improve its ability to innovate, and create jobs.

Why do stocks go up and down in value?
Towards the end of the street market, products become cheaper because sellers want to sell off their fruit. That is how the law of supply and demand works. In the stock market, if a lot of people look to buy a certain stock, its price increases. Its value decreases when there are more people trying to sell than to buy.

1. According to the text, which option is NOT right?
A) Stock prices decreases when few investors want to buy it and many people want to sell it.
B) Three women are now at the top of the main stock exchanges in the United States.
C) Stacey Cunningham has worked at NYSE for more than 20 years.
D) Stocks are slices of a company’s worth.

2. Which companies would you like to buy stocks from?