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History Of The New York Stock Exchange

New York Stock Exchange

The history of the NYSE is as fascinating as the development of the nation in which it resides. First starting out as an agreement between 24 merchants and individuals that owned stocks in various companies resulted in a financial empire that allows any interested individual to trade stocks in different organizations. In 1792, these 24 people joined together to share information and formed the Buttonwood Agreement. Based upon this simple idea of working together to realize wealth, the New York Stock Exchange was formed. Since the origin, the ideals set forth in this agreement continue to allow various investors to own a part of assorted firms.

The location that marks the origin of Wall Street was actually a stockade that was used to protect early settlers. This stockade was created in 1653 to provide protection against attacks by the Native Americans and the British. In 1685, Wall Street was created behind the protective barrier. It wasn’t until the United States government became involved in 1790 that securities in various companies became available to the public forming the history of NYSE. The New York Stock Exchange was an attempt to refinance debt that had accumulated during the Revolutionary War.

After the individuals involved in the Buttonwood Agreement started trading various securities on commission, the history of NYSE continued to develop. The War of 1812 saw tremendous growth in the types of investment options that were offered to the public. These securities included stocks in banks and insurance companies as well as bonds issued by the government. 1817 marked a significant year in which rules where established. The idea of a call market formed and an official constitution was drafted. This was also the year that the New York Stock & Exchange Board official became a recognized organization.

The Stock Exchange at 10–12 Broad Street, in 1882

The 1800s was a remarkable time in the history of NYSE. New inventions continued to allow the New York Stock Exchange to grow while various setbacks such as fires and investor panic altered the way the organization operated. It wasn’t until 1863 when the name was changed to the shorted form it is known as today. 1886 marked the first time that over one million shares were traded in a signal day. The Dow Jones index was first published in 1896. The 1900s saw the market becoming a world leader and the government becoming involved to provide oversight. The 2000s saw continued growth, including the involvement in global markets. Thanks to an idea formed over 200 years ago, the market has become a viable investment option for many people in today’s society. - 120x60 - Jim Cramer