Historical Background Of The American And Vietnamese Stock Markets Essay

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1. Background and introduction to the research
The stock market, which comprises various stock exchanges, plays a leading role in the function of the financial market (Dziawgo, 2012, p.60). Since there are a great number of issues such as stock market crashes and the bursting of other financial bubbles, Vietnam still has a number of crucial challenges to attend to. In this research project, the researcher will outline the historical background of the American and Vietnamese Stock markets, and investigate the major differences between the HSX and NYSE, in terms of operations and trading systems. Through gathering this information, the researcher will be able to recommend what HSX can learn from NYSE to improve the Vietnamese stock exchange in the foreseeable future.

1.1 Background of American Stock Market

The New York Stock Exchange, the oldest and largest stock market, was founded in 1792. The major objective of the NYSE is establishing a place where peoples can trade their bonds, stocks and other investments (Fuentes, 2016). In the beginning, the stock exchange was established as a group of traders that turned into an unincorporated membership, before becoming a for-profit organization (Waverly, 2016). NYSE is considered not only the largest stock exchange in terms of how many dollars flow through it every day, but also a haven to various enterprises across the world (Fuentes, 2016). Currently, its worldwide capitalization is USD 21 trillion (Kiersz, 2014).


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