The origins of US stock market
The Great American Institution that is the US Stock Market has had a tumultuous 100+ year journey. Let us examine the origins and the earlier times that this market, which affects the entire world’s economy, has seen over the last two centuries.
- Sometime in 1600s: Dutch settlers and early merchants in NYC built a wall to protect themselves from pirates, the Indians, etc., which went on to become a bustling commercial thoroughfare later named Wall Street.
- March 1792, Corre’s Hotel, NYC: 24 of the city’s leading traders met in secret to discuss methods to wrest the securities business from the auctioneers, their competition, and bring order.
- May 17th, 1792: They signed a ‘Buttonwood Agreement’ (named after the Buttonwood tree, their traditional meeting place), which called for the signers to not participate in other auctions of securities, set trading fees and trade securities only among themselves. This went on to become what we know as the NYSE.
The beginning: America’s very first stock exchange is actually the Philadelphia exchange founded in 1790. In early 1817, when NYC’s merchants realized that their exchange was declining, they sent an observer to the thriving Philadelphia exchange. Upon his return, they formally organized the New York Stock and Exchange Board on March 8th, 1817 at 40, Wall Street. It was an exclusive organization which required new members to be voted in and which allowed candidates to be black-balled by 3 downvotes. Prices of seats in the exchange increased from $25 in 1817 to $100 in 1827 and $400 in 1848.
The 1900s: Huge fortunes were made on Wall Street in the early 1900s. The first panic came in 1907 when $800 million in securities were unloaded within a span of months. Consequently, stocks plummeted, the Knickerbocker Trust Company folded, and ultimately, JP Morgan and other leading NY bankers set up a single banking trust.
The Black Tuesday’ crash of October 29th, 1929 brought more panic and loss, since stock prices were 400% higher than they had been 5 years earlier. The stocks fell 49 points, the market fell 31 points and investors and brokers even committed suicide, with the fallout lasting till early 1941. As a result of this, the Securities and Exchange Commission (SEC) was formed in 1934 in an attempt to restore faith in the equity markets. Later on, NASDAQ was formed in 1971.
Today, the NYSE is the 800-pound-gorilla, the world’s biggest and most powerful stock exchange with a market capitalization larger than NASDAQ, London and Tokyo combined!
Do Auto Insurance Companies Check Driving History?
An insurance company may check your driving record when you are looking for a new policy, renewing your existing policy or modifying the policy by adding a new driver or additional vehicle. You may also wonder whether your driving record can prevent you from getting insurance. Your driving record check typically will not prevent you from getting co
Do Auto Insurance Companies Share The Provided Personal Information?
When you make an insurance claim or begin the process to switch insurance companies, information about your claims history is placed into a national loss-underwriting database. That information can be accessed by all insurance companies that are considering insuring you. However, insurance companies do not share your personal information directly w
Do only breadwinners need life insurance coverage?
The cost of replacing the services formerly provided by a deceased homemaker can be higher than you think, and insuring against the loss of a homemaker may make more sense than one might think, especially when it comes to cleaning and daycare costs.
Do single people without dependents need life insurance?
Even single persons need at least enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with. Plus, this can be a good way for low-income singles to leave a legacy to a favorite charity or other cause.
Does Auto Insurance Cover Theft?
If your car is stolen, a number of things need to happen for you to be compensated for your loss. First, you will need to file a police report and wait while there is an attempt at recovery. If your car is not recovered, you can file a claim with your insurance company if you have comprehensive coverage. Because of the risk insurance companies face
Thyroid cancer, important things to know
The abnormal or malignant cell growth in the thyro...Read More
Christmas gift basket ideas for your loved ones
There are always some people on our Christmas gift...Read More
Skin care advice every dermatologist gives
We go to dermatologist when we face problems relat...Read More