Significance of the bell ringing ritual at the New York Stock Exchange

One of the most familiar images of the New York Stock Exchange (NYSE) on the financial news is the loud bell, signaling the opening or closing of the world’s largest stock exchange.

According to information from the NYSE, ringing the bell is not only a colorful tradition, but is very important to the functioning of the market, to ensure no trading takes place before opening (9:30 am) or after when closing (16h).

The bell was first used at the NYSE in the 1870s. It was originally shaped like a gong. Before using the gong, the exchange used a wooden hammer to knock.

In 1903, when the NYSE moved into its current building (11 Wall Street), the gong was replaced by a bronze bell, which was electrically operated and large enough to resonate throughout the wide trading floor. big.

Prime Minister Pham Minh Chinh knocks a hammer after pressing the bell button to end the trading session at the New York Stock Exchange (NYSE) on the morning of May 16, local time – Photo: NGUYEN KHANH

Today, each of the NYSE’s four trading zones has its own bells, which operate in unison from a single console. Just press the button and 4 bells ring at the same time.

The bell ringer presses and holds the bell button continuously for about 10 seconds and then strikes the hammer as a way of recalling the old hammer tradition from before the bell.

After pressing the bell to end the trading session, the bell ringer will strike the hammer 3 times. Some people think that breaking the hammer while knocking is good luck.

The NYSE began welcoming special guests to ring the closing bell in 1995. Before that, ringing the bell was the responsibility of the exchange manager.

Many people consider ringing the bell a memorable moment. Even for those accustomed to the limelight, the experience is still highly emotional.

The guests who ring the bell are usually the founders or leaders of companies listed on the exchange, on the anniversaries of IPOs (first floor of the public offering of securities) or important events of the company. the company.

Occasionally athletes, entertainers and political leaders ring the bell.

The first guest to ring the opening bell was 10-year-old Leonard Ross, in 1956. The boy won a quiz on TV answering questions about the stock market.