When you think about stocks, your mind immediately goes to the New York Stock Exchange and Wall Street, but do you know how this giant industry first started?
The beginnings of the American stock market have much more humble beginnings than you might think.
Keep reading to find out more about the history of stocks.
When Did the U.S. Stock Market Start?
The Amsterdam Stock Exchange, which is considered the first stock market, was founded in 1602 and is still operational today. crypto exchange crm America only entered the stock market game in the late 1700s when a small group of merchants made the Buttonwood Tree Agreement. The group would meet daily in order to buy and sell stocks and bonds.
While the members of the Buttonwood Tree Agreement are considered the inventors of the American stock exchange, the Philadelphia Stock Exchange is the oldest American stock exchange. The Philadelphia Stock Exchange had a phenomenal impact on the global economy and spurred the development of the U.S.’s financial sectors.
The New York Stock Exchange
The New York Stock Exchange (NYSE) was created after the Buttonwood traders visited the Philadelphia Merchants Exchange in 1817. The NYSE was initially labeled as the New York Stock and Exchange Board and members of the board had to pay a fee that exponentially increased from $25 to $100 by 1837.
Wall Street suffered significant property loss in the Great Fire of 1835. This would have been a big knock for the stock exchange if Samuel Morse opened a telegraph demonstration office. This allowed brokerages to communicate remotely.
In 1903 the NYSE opened its doors (and underground vaults) with hundreds of stock certificates.
The stock markets hit a 50% high in 1928 despite all the indications of an economic downturn. However, in 1929, the market dropped a whopping 11% in an event known as Black Thursday. The sudden drop caused investors to panic, and the market only recovered in 1930 from the crash.
This crash period was the Great Depression. Since then, the market has experienced several crashes over the years, the 2008 mortgage crash being another big one.
The NYSE has transformed over the years. While it started as a small group of people manning the exchange board, it has grown and evolved to be the stock market we know today.
Nowadays, you’re able to deal in forex as well as stocks. The concept is similar, but the item traded is different. Forex education is on the rise as the forex market continues to grow, so now might not be a bad time to get started.
The History of Stocks Made Easy
The history of stocks and the NYSE is a fascinating subject. Investing in stocks has become extremely easy, but the NYSE history isn’t as widely spoken about as you might think. Knowing how the stock market was formed is an interesting piece of history that tends to get overlooked.
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