The Stock Exchange Is The First Modern Day Trading Exchange

By the end of the 1920's the Stock Market was flourishing. In 1928 the New York Stock Exchange was trading at about six to seven million shares a day. Many economists warned about the dangers of rising prices. People disregarded this information and speculation increased about the Stock Market being the easy way to make money. People invested their life's savings. Banks too invested large sums of money into the Stock Market.

After the American Revolution which took place between 1775 to 1783 the number of securities increased dramatically. The amount of shares being bought grew so large that brokers had to organize in order to handle the growing volume. In 1800 the

From the late sixteenth century up until the end of eighteenth century, Dutch Republic attracted numerous migrants from other European countries (Van Lottum, 2007). The province Holland became a global center for trades, culture and science during this period, which is what we call “Dutch Golden Age” now. A reflection of the flourishing economy in Holland is the Dutch East India Company (VOC), which was sponsored by not only the government but also Dutch citizens. It raised 6.5 million guilders at that time about three million euros which were worth billions at the time. With the money, they started the company and overseas expansion. Moreover, in 1609, the first stock exchange was born in Amsterdam. The stockholders of VOC could convert their

In Document 5, by Harry J. Carman and Harold C Syrett, A History of the American People, 1952, stated that, “As more investors put their money into securities (stocks) in the hope of making a quick profit on a speculative rise in stocks,... the exchange became a betting ring where people gambled on stocks in much the same fashion that gamblers wagered on roulette or horse races.” Investors would buy shares not knowing if the company would make a profit, making it dangerous. Stocks would go up because buyers believed that they will be able to sell it for more next time. When things are going well, consumer confidence is high and people buy.

The 1920’s was known as the time for the stockholder stock prices, since they soared through the roof and reached new levels and created Millionaires overnight. This time period was marked as a large growth with the stock values being high, in 1925 the value of the New York Stock Exchange was approximately $27 billion dollars, and that figure skyrocketed to about $87 billion in just four years. This meant that each average stockholder had tripled their value of stock they were

In the 1920s many people felt like they could benefit enormously from the stock market. Not keeping in mind that the stock market was liable to change rapidly and unpredictably. Many people invested majority of their savings. As more people invested, the stock prices began to rise. Through the years the stock prices went up and in time people started realising. As they realised, more people stared to invest. Therefore the boom of the stock market had begun. This changed the way the people saw the stock market and it was no

In 1873 railroads were being built, but they were not producing enough profit to keep the railroads industry sufficiently stable. When investors heard the news they rushed to sell their railroad stocks as soon as possible as the value went down. The New York Stock Exchange, now in a panic, closed on September 20th, 1873 to stop people from selling their stocks. When the New York Stock Exchange reopened ten days later, people were relieved and thought all danger had passed them by with no consequences.

It started in the 1920s when the United States stock market went through rapid expansion

The U.S. economy was booming in the 1920’s. Stocks prices soared, as they were bought on margin for as little as 10% down. Market speculation is cyclical-that is, if one stock appears profitable, you buy it,

This common outbreak of speculation caused about three main financial problems. First, this sudden stream of money going into the stock market caused the share prices to inflate, which caused the actual stock’s

The basic problem was that there were too many shareholders – lots of people had speculated on the stock market with money borrowed from banks, with the result that they sold in a panic the minute share prices rose, starting an upward spiral.

A bubble of investment caused the stock market crash in New York as investors discovered the market and marginal trading and inflated it with capital as it was relatively new created in 1817. The increased level of speculation forced a bull market in the five years before the crash the Dow Jones Industrial Average increased in value fivefold, drawing a larger investor pool that sustained the bubble. This provided investment for a number of industries and infrastructure though it is also what fuelled the excess or the roaring twenties, though the level of speculation inflated the growth. During this period, there was not the level of financial regulation and hence, most banks were also participating in this speculative investing with depositor funds. Thus, many believed that the market would remain bullish and invested on stocks with margins of up to two-thirds of the face value of the

During the 19th century, most of the things traded in the Stock Exchange were government bonds. Few corporations were in existence during this time but they were primarily banks that people could buy and sell stocks. Over the centuries more companies joined the exchange with the railroad industry dominating the market through the 20th century. The invention of the telegraph allowed for easier trading and membership expansion. The current membership is limited to 1,300. The organization is a nonprofit organization that minimizes fraudulent offers and providing a safe investing environment. The market works by investors buying and selling shares of a company. The value of the shares depends on the value of the company and its

The Stock Market is an organized market for the trading of stocks and bonds. In Europe a stock exchange is often called a bourse. Stock exchanges exist in all-important financial centers of the world. Members of an exchange buy and sell for themselves or for others, charging commissions. A stock may be traded only if it is listed on an exchange after having met certain requirements. The New York Stock Exchange (founded 1790) is the largest in the U.S., handling more than 70% (in market value) of all transactions. The American Stock Exchange (Amex), also in New York City, and regional exchanges account for the remainder. Unlisted shares, often of smaller companies, are traded in the growing over-the-counter

     The New York Stock Exchange traces its origin back 200 years. Centuries of growth and innovation the NYSE remains the world’s foremost securities marketplace. Over the years its commitment to investors has been unwavering and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. The NYSE has grown to become the global marketplace of today.