In the beginning, there was no real stock market. However stock exchanges did take place in smaller groups and corporations. This all took place during the 1700's where stocks were already around for a long time before that but it wasn't really popular in the United States. Stocks originally started as auctions where traders called out names of companies and the shares available. There was a auction that took place and the shares went to the highest bidders.
After the American Revolution which took place between 1775 to 1783 the number of securities increased dramatically. The amount of shares being bought grew so large that brokers had to organize in order to handle the growing volume. In 1800 the Philadelphia Board of Brokers set up rules and central offices where trading could take place. They created the Philadelphia Stock Exchange which is the oldest stock exchange in the United States. In 1817, New York brokers created the New York Stock and Exchange Board which was later renamed to the New York Stock Exchange in 1863.
The United States grew and prospered during the 19th century and more and more companies issued stocks and bonds. More and more people began to invest and many stock exchanges were created all around the country. However, few companies held on and eventually broke up due to other exchanges getting bigger. One of the most popular exchanges in the world today is the New York Stock Exchange. It is one of the oldest exchanges in the United States formed about 20 years or so after the Philadelphia Stock Exchange. One of the short lived companies were the small exchanges formed during the California Gold Rush of 1849. There gave birth to many small exchanges where the pub...
... middle of paper ...
...he Nikkei index of the company TSE dropped almost 50 percent. They eventually rose back up after 1990.
After the 1987 crash, the government established new rules for higher margins. It is unknown whether these new regulations and margins will help investors from getting into another crash in the future.
Currently, there are many companies that do not list there stocks on any exchange. These are what make up the Over-the-Counter market. The largest of these companies is NASDAQ, which stands for the National Association of Securities Dealers Automated Quotation system. Mostly high tech companies invest in these markets and they are usually the smaller companies. Larger companies would rather choose the exchanges since they are bigger and more popular stocks.
Microsoft Encarta 98 Encyclopedia CD-ROM
Stock Exchange, by Samuel Case
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The History of the Stock Market In the beginning, there was no real stock market. However stock exchanges did take place in smaller groups and corporations. This all took place during the 1700's where stocks were already around for a long time before that but it wasn't really popular in the United States. Stocks originally started as auctions where traders called out names of companies and the shares available. There was a auction that took place and the shares went to the highest bidders. After the American Revolution which took place between 1775 to 1783 the number of securities increased dramatically.... [tags: Papers]
834 words (2.4 pages)
- Market Watch: Regulation of the Stock Market The Enrons and Worldcoms made it clear that the financial markets cannot be left under the auspices of corporate directors and officers, without oversight authority. "The corporate abuses and fraud that Enron exemplified, while not a first in the financial markets, they were certainly a first in terms of the magnitude of the losses to stockholders and the confidence the public reposed in the financial sector (Bequai 2003)." As a result of the stock market crash of 1929 regulations such as the Securities Act of 1933 and Securities Exchange Act of 1934 were established to prevent such practices as those that contributed to the downfalls of Enron an... [tags: Stock Market Crash 1929 History]
1666 words (4.8 pages)
- In the early 1900s, the United States economy was challenged by the weaknesses of the existing national banking system, whose lack of liquidity and an inelastic currency caused a panic in 1907 where the stock market fell nearly 50% from its highest point one year earlier. The ensuing recession and bank runs prompted the creation of the National Monetary Commission and, eventually, reformed banking and currency legislation. This resulting legislation, enacted in 1913, created the Federal Reserve System.... [tags: finance, american history, stock market]
573 words (1.6 pages)
- The causes of the Great Depression in the early 20th century is a matter of active debate between economists. Although the popular belief is that the main cause was the crashing Stock Market in 1929 caused the Great Depression, There were other major economic events that contributed just as much as the crash, such as American’s overextension of credit, an unequal distribution of wealth, over production of goods, and a severe drop in business revenue. As these events transpired the state of economic crisis in the US began to skyrocket.... [tags: Crashing Stock Market, American History]
2022 words (5.8 pages)
- History Of The New York Stock Exchange Nowadays the world 's main trading platform is considered to be the New York Stock Exchange (NYSE). Not only for the United States but also for the whole world of finance, it is the great and major exchange. In the history of its creation, an important date is 1792. The year when twenty four brokers in New York signed the Buttonwood Agreement on the establishment of a new stock exchange in order to be able to limit their commission fees . However, as we know it today The New York Stock Exchange begins its history in the year 1865 when it has acquired its own building with a white facade with six columns built in the Corinthian style .... [tags: Stock exchange, Stock market, World War II]
1609 words (4.6 pages)
- “There were no smiles. There were no tears either. Just the camaraderie of fellow-sufferers. Everybody wanted to tell his neighbor how much he had lost. Nobody wanted to listen. It was too repetitious a tale” (The New York Times, World History Book). The stock market crash was only one of many contributions leading up to the Great Depression. There were many economic and societal conditions that worsened throughout this time. Luckily there have been documentaries on the life that was lived by the people and how they got through it, just like the character in the movie Cinderella Man, Jim Braddock.... [tags: American History]
882 words (2.5 pages)
- History of Financial markets: Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked ch... [tags: Stock market, Investment, Saudi Arabia, Stock]
1215 words (3.5 pages)
- Investing successfully is the key to reaching one’s long-term goals. Whether one has some money set aside to begin investing, or one has just come into a large lump sum of money, there are many ways to go about investing the money. There are several mainstream ways to invest that can work for both professional in the field or a novice, but one needs to weigh the risks associated with the probable gains. The point in the many ways to invest is that, no matter method one chooses to invest, the method should work so that it can earn one additional profit.... [tags: Stock market, Investment, Finance, Bond]
849 words (2.4 pages)
- The United States signaled a new era after the end of World War 1; an era of hopefulness when many people invested their money that was under the mattresses at home or in the bank. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929. First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had started by 1928.... [tags: investment, buyer, stock prices]
862 words (2.5 pages)
- The 1929 Stock Market Crash "We’d like to thank you, Herbert Hoover/ For really showing us the way/ You dirty rat, you Bureaucrat, you/ Made us what we are today (www.stlyrics.com)." These lyrics from the musical Annie place the blame for the 1929 Stock Market Crash solely on the then former president Herbert Hoover. The truth of the matter is that placing the blame for the Stock Market Crash on Mr. Hoover is very unfair. Herbert Hoover was only one of many causes of the Stock Market Crash. It is easy to try to place the blame for one of the most destructive events in the history of the American economy on one person, but the real causes lie in the rampant speculation, the lack of regulati... [tags: American History]
1939 words (5.5 pages)