The Stock Market's Impact on Our Lives Essay

1359 Words6 Pages
Every weekday from the hours of 10am to 4pm $169 billion dollars on average trades hands from one party to another. It’s the New York Stock Exchange and has been trading stocks since 1817. The stock market has a definite impact on our lives (just ask those who lived during The Great Depression.) It is an institution that has made people unfathomably wealthy, along with impossibly poor. Today the New York Stock Exchange has over 2,300 different companies trading stock valued at just over 16 trillion dollars. Currently there are over one hundred unique stock exchanges throughout the world. A Stock exchange provides a means for companies to raise capital through issuing stock. This process begins when a private company files to issue…show more content…
A company reserves the right to raise and lower the exact amount of the dividend via press releases. The New York Stock Exchange was not always the financial giant it is today. When it first began in May of 1792 it only traded five securities, the first of which was the Bank of New York. At the start only twenty-four brokers were allowed to participate in trading. It wasn’t until 1817 that the New York Stock Exchange began to embody something close to what we know today. All of the 24 brokers established a constitution of rules with how the exchange must operate. These rules included everything from how one ’s self could lose their membership to fines for swearing. More importantly though they protected the integrity of the exchange with it’s’ regulations. The New York Stock Exchange has had its fair share of tragedies as well. In 1920 a bomb went off outside of the exchange killing 38 people; the largest act of terrorism on United States soil at the time. The bomber was never apprehended. The most destructive event of the stock exchange’s life was the Crash of 1929. After World War I the U.S economy was doing quite well. From the period of 1925 to 1928 the stock prices began to rise rapidly. The stock market appeared to families as a secure, strong means to increase their money. Just about everyone was putting their money into the stock market in order
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