Short History of the Stock Market
When people think of the history of the stock market the first thing they tend to think about is the stock market crash of 1929. The history of the stock encompasses a much broader range of events and place though. For example, throughout the world, investors watch everything from the London Stock Exchange and the New York Stock Exchange, to the Bombay Stock Exchange and the NASDAQ.
Early American trading history starts in the late 18th century with stock brokers meeting outdoors at the curb (thus they were known as curb brokers) to trade amongst themselves. Often braving the elements such as the wind and rain, as trading activity grew stock brokers developed a system of hand signals so that brokers could make trades as the activity and noise levels grew.
This system of hand signals has become an iconic part of Wall Street, with the common public image of brokers screaming on the floor, frantically waving hand signals.
The London Stock Exchange started in 1698 and was the very first exchange to begin. This exchange began in a coffee house and included a simple list of stock and the prices of the commodities. Today, this exchange has over 2,500 companies in over 55 countries.
The New York Stock Exchange (NYSE) was developed in 1792 and is the first exchange in America. This exchange included dozens of stockbrokers who had a new idea for organizing the chaos of trading stocks that currently existed. In an agreement to organize this exchange was formed. Today the NYSE lists over 2,700 securities and is the world’s largest stock exchange by dollar volume, though it is the fourth largest in terms of company listings.
The American Stock Exchange (AMEX) is a member-owned organization that was established in 1842, and was known as the New York Curb Exchange until 1929. AMEX started out like many other markets at the time, outdoors on the curb. It wasn’t until 1921 that the American Stock Exchange moved indoors in Manhattan. Today, the building is a National Historic Landmark.
The National Association of Securities Dealers Automated Quotations (NASDAQ) is another American stock exchange established in 1971. An interesting note regarding NASDAQ is that the company that owns and operates the whole organization is itself publicly traded and is listed on the very stock exchange they manage.
The NASDAQ is considered to be the first electronic stock market. Today it is known for having several high tech companies listed. This network of exchange has surpassed the NYSE making it the largest in the world. The NASDAQ is also the world’s largest stock exchange in terms of trading volume.
With so many stock markets to keep track of and deal with, it is little wonder that new investors often hunt for reliable stock tips for investing. The basics don’t take too long to learn, but becoming an expert may require a little one-on-one training.