Transcript for NYSE president Tom Farley on the highly anticipated Snapchat IPO
Hey everybody I'm in about silly here in New York are continuing to keep and I one of the biggest stories of the day that of course is the snapped ink. IPO they are the evil geniuses behind snapped at you see there picture from earlier today opening bells on the New York Stock Exchange. It's not chat founder and his fellow leaders of the company. Rang the opening bell too much excitement this of course is one of the most highly anticipated tech IPOs. In the country are Rebecca dart sit down in the middle of the action on the floor of the New York Stock Exchange following the stories that with us and she now has special guest. High on the thank you so much yes I'm joined here by Tom Barley he's the president of the New York Stock Exchange. It's great to zero through this big day of course that Chad it's also big day for the New York Stock Exchange talk a little bit about what's been going on behind the scenes here this morning. Sorcery Camille Little confusing at all we have flashing lights a colorful jackets I think. Let me just start by quickly saying it for 225 years entrepreneurs have come to the stock exchange to raise money. To help make their dreams turn into reality and and ultimately to go make the world a better place whether it's Ford mass producing the car. Edison at the light ball today snap is raising money quite a bit of money. About three and a half billion dollars to help go make some more of their dreams a reality in a make more people happy they've already created thousands of jobs and and and and improve lives for millions of of customers but this'll give them even more money firepower to be able to go invest further in their business. It's and all the traders that you see here on the floor who are gathered around here where snap will eventually start treating. What they been doing all morning. Sure source OI just talked about the fundraising part of what we do to your sexist the second part of our business really simple business it's the first in the second hardest trading the securities of those companies. After that initial fund raise and so that's what those traders are doing. They're speaking to investment managers think about a pension fund that maybe your viewers have have money with Tora Bora fidelity or or a Wellington. Mutual fund. And they're deciding to I want to be a buyer a snap at that whatever the ultimate prices we opened ward I wanna be a seller. And last night shares were handed out about three and a half billion dollars worth a for the most part people are gonna hold on to the shares with some people are just gonna sell overnight a portion of of what they hold. That's what will create what we call liquidity. Or supply of shares. And when we open the stock today whenever we open it we don't rush the idea is to find the price or supply meets demand a smooth price so snap can enter the public markets in the most peaceful way possible. And that's why it that snap Chad snap is not opening yet as a public company all of that behind the scenes stuff that's going on is still going on they're still figuring out exactly what the price is every day the market opens here at 9:30 AM without opening bell we see the iconic opening bell every morning here on ABC. What felt like this morning evening for Evan Spiegel to ring the opening bell. I can't imagine what's going through is minor he started this business and it ended in a spare bedroom and and now here is going public in New York Stock Exchange it. 25 billion dollar order for greater valuation and he gets to ring the bell that kind of iconic bell that symbolize this pay. I built something great something great for America even even the world in a minute open those markets. I hope and expect the heat he really enjoyed it but you know you have to ask him directly or seemed like he did. I. 24 billion dollars when all is said and done. A handful of years ago he turned down a three billion dollar offer to sell his company to FaceBook and other company that treats here at the New York Stock Exchange. You leave that. He's feeling good to that. I I I I would imagine I know him well enough to tell you however. He thinks of this day believe it or not as just a very small milestone he truly does he's as excited about getting back to work. As he is about spending the rest of the day celebrating this IPO. He's an iconoclast. He cares deeply about provide building a great product and so this is just a milestone an important milestone to to be sure. But this is somebody who. He will tell you is building a business for the very long term. For the very long term which is what investors who put their money in stocks are always hoping Warren Buffett one of that most famous investors of our time. Says he wants Jones Stoxx forever at bats his ideal time horizon to own it company. Of time what time do we think this stock might open today I know you can't say for certain but what do you think. Yeah we don't we don't we are rusted bed just looks like there might be confusing your viewers tacked on as the president here it's like is it not know. When an open at that big the issue is. In trading markets people don't like what's called volatility in hours the stock prices jumping all around makes people nervous. You know it's it's it's just not a good way to start alive is public company so we take our sweet time until we sense that that volatility is out of the market and we really understand when open the price. The source IPOs or twenty minutes so would have opened a while ago the longest IPO Alibaba was two and a half hours didn't open until noon. I expect this one is gonna be somewhere somewhere in the middle perhaps closer to Alibaba but again we're not gonna rusted of its new and it's it's noon the key and we do this differently than any other change the world because we have this human element. The key is to make sure things settle down and open and open it right. And ultimately this if this goes well in that by all looks it's it's probably gonna go well. How does this set the tone for other IPO is going forward. Well coming off last year if I get a little bit dour we had zero IPOs in the entire first quarter of last year. Here we are. Two thirds of the way through the first quarter and this is our thirteenth I believe this number. And we have many more to come so. The market's already come back for for IPOs April looks great and by the way and for those interviews are aren't in the finance business everyday I -- a good. It's raising money that can be deployed in the businesses to create jobs to invest some of the money goes back and investors' pockets who can then turn it into another investment this is this is good stopped. Some of those bigger attacks deals that have been sitting on the sidelines they're paying close attention. Today as well also befall if all goes well maybe we see some more of those bigger exciting household tech names IPO within the next year so. Before I go I know what you guys are on snapped chat. You have an account so where can people out there who are following along find your account. So. You can follow us at. NYSE. Got it NYSE if you wanna see behind the scenes on the floor here that's every day not just today on the I. That's part of why I'm having so much fun I snapped with my three daughters I snapped but my wife my wife happens in Africa right now on on a service project were snapping back and forth I'm watching her life she's watching mind. So that's part of why I was so excited -- so enthusiastic today. Fantastic Tom. Thank you thanks Rebecca. And big skies for following along on now send it back to you Stotts still not helping yet but. Probably gonna get there in a little bet. We'll keep an eye on the Rebecca one quick question for you might still have mr. Reilly point of contention here I refused to believe the day 26 year old become the billionaire. It just another day. In the light that he can hiding it. Yes it is it is nice you not know is he's saying it. It's it's hard to imagine that the day at 26 year old becomes a billionaire is just another day and it's company. Now used. Like you meet this guy and he's 26. He say he's a handsome dabbling he's charismatic. He's. He's he's very articulate he's dating grand occur Miranda Kerr was here walking with a Marva trying to kind of like Al manna knots or not they immunize is really nice to. So it yet you want to reform. There you want to root for or not now there you go out paid they listed mr. Reilly out I'm sure he has busy have. A busy day ahead we'll let him go over Beckham before we let you go without just give the offense from down there on the floor because there is so much into that patients so much excitement I'm this IPO. What is it like there physically this morning. You know it's very crowded and not every day you come down here and and have as many people who don't work here at the New York Stock Exchange more people like us journalists who are on the floor this morning. I usually I can get through security there there's a lot of security here and usually you know there's a few people waiting this morning at their way is huge crowds of security. Com and at one point I have to admit there were a couple of suvs that they were waiting letting through an I was. I was getting around wondering is Evan in one of those suvs but. We didn't see him we did see him one of the suvs but. But it's there is a lot of excitement I think there are a lot of people who were interested because this is the company that people know by name and people remember the FaceBook IPO they remember the Twitter IPO these are big moments in the company's history and people really want a witness that that part of the history even if Evan doesn't Evan Spiegel doesn't think this is a big moment. This is a big moment for his company you know Rebecca he rape. Interesting point though that let to get your take on stocks and that when people choose to invest it's often emotional. Sorted this did you have you know the company can use their product you have a connection to them. You're almost more likely to want to buy in an absolutely want them to 62 rights. Absolutely I mean people yeah people and I I ate I covered this a lot with the FaceBook IPO when that happened in 2012 a lot of people who. Had never owned a stock at their life who got excited about FaceBook and went out bought a share or you at face but. And for those people like you know they're at there's not a huge about a risk if you're buying one or two huge cheers of a company that's. That's we're not talking about thousands of dollars and putting your money at risk. But but again I would go back to this point that that I made earlier switching is. Rather then trying to choose winners which is very difficult to do and even some of the world's best fund managers don't. Get it right. A lot of the time don't get it right Brad Evans right to choose winners your best strategy if you're investing and saving for retirement. Is to throw that money in the 401K get the company match tickets and if if they're offering it put the money in an irate. A Roth IRA. And net. Put it into an S&P 500 index fund it's the cheapest thing you can do the least expensive. Wait you invest your money and it just gives you a broad. Spectrum of stocks is opposed to trying to choose just one and be right about it. Rank near Mecca where can you will find you on snap Chad and you're going to be snapping about yeah I'm snapping Ivan stabbing from the floor all day I am. At Rebecca Jarvis literally on every social media platforms snapped chat Twitter in sick Graham. I got lucky they had my name still avail. Oh when I like to sign up. Vigo Rebecca Jarvis snapping about the snap IPO it's very mad that so Amanda you think I really act there let's get a following up now and Rebecca Jarvis and the floor of the New York Stock Exchange for a stay here earlier latest market news and it's not IPO and of course. All your last year is happening right here and across the country for all this here right now I'm on in the month.
This transcript has been automatically generated and may not be 100% accurate.