It is amazing to some people that stock market history
started so long ago. It seems like such a modern idea with the way that
Wall Street is set up today. Most historians count the start of the
stock market to have taken place in Europe between the 12th and 14th
centuries.
There were many different models of trading,
but
the Dutch actually came up with the concept of joint stock companies.
People could then buy stocks and would receive some of the profits if
the company did well. The Amsterdam Stock Exchange began in 1602, and
is a vital piece of the history of the stock market.
Stock Market history would not be complete
without
discussing how it started in America first. Actually, it was Alexander
Hamilton who started to develop the American stock market. He had a
vested interest in this since he was the first US Secretary of the
Treasury.
His idea was to promote securities trading
in New
York. The model was based off of how Great Britain did their trading.
The hub for this activity was on Wall Street and Broad Street, and
changed from securities to actual stocks.
Most people are familiar with the New York
Stock
Exchange as part of stock market history. The New York Stock Exchange
(NYSE), started with 24 men wanting to charge commissions for others to
trade. Then, the New York Stock Exchange Board was created which moved
to the NYSE building we are all familiar with today.
The NYSE is so well know because it is the
most
popular stock exchange today. It is an amazing fact that this works so
well and has for so many years. There have been trillions of dollars
that have passed through the NYSE!
Even though the NYSE is the most popular way
to
trade, there was another option created in the 1900's. The American
Stock Exchange was another exchange that started up.
Of course, the history of the stock market
hasn't
always been so rosy and profitable. The stock market crashed back in
1929. Over a few months time, the market dipped in such a way that many
people panicked. These people pulled all of their money, and the stock
market came crashing down.
It is an amazing fact that the US lost $30
billion
during this time. There have been a couple other smaller crashes during
that time. One was in the year 1987, and the other on September 17th,
2001. That was the first day the market reopened after September 11th.
In modern times, things have become very
computerized. Trades can be submitted electronically. There are even
Internet based companies that will allow you to do trades through their
website. The cost of the trades is relatively inexpensive, so if you're
looking to break into the stock market and take part in history, this
is the way to do it.
Stock market history is full of ups and
downs. The
most popular formation in the world of stocks is the New York Stock
Exchange. There are many ways to get involved in the stock market these
days; the most popular method is to use the Internet.