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[H418]History Of The Stock Market

by Art Gib, Art

When people think of the history of the stock market the first thing they tend to think about is the stock market crash of 1929. The history of the stock encompasses a much broader range of events and place though. For example, throughout the world, investors watch everything from the London Stock Exchange and the New York Stock Exchange, to the Bombay Stock Exchange and the NASDAQ.

Early American trading history starts in the late 18th century with stock brokers meeting outdoors at the curb (thus they were known as curb brokers) to trade amongst themselves. Often braving the elements such as the wind and rain, as trading activity grew stock brokers developed a system of hand signals so that brokers could make trades as the activity and noise levels grew.

This system of hand signals has become an iconic part of Wall Street, with the common public image of brokers screaming on the floor, frantically waving hand signals.

The London Stock Exchange started in 1698 and was the very first exchange to begin. This exchange began in a coffee house and included a simple list of stock and the prices of the commodities. Today, this exchange has over 2,500 companies in over 55 countries.

The New York Stock Exchange (NYSE) was developed in 1792 and is the first exchange in America. This exchange included dozens of stockbrokers who had a new idea for organizing the chaos of trading stocks that currently existed. In an agreement to organize this exchange was formed. Today the NYSE lists over 2,700 securities and is the world's largest stock exchange by dollar volume, though it is the fourth largest in terms of company listings.

The American Stock Exchange (AMEX) is a member-owned organization that was established in 1842, and was known as the New York Curb Exchange until 1929. AMEX started out like many other markets at the time, outdoors on the curb. It wasn't until 1921 that the American Stock Exchange moved indoors in Manhattan. Today, the building is a National Historic Landmark.

The National Association of Securities Dealers Automated Quotations (NASDAQ) is another American stock exchange established in 1971. An interesting note regarding NASDAQ is that the company that owns and operates the whole organization is itself publicly traded and is listed on the very stock exchange they manage.

The NASDAQ is considered to be the first electronic stock market. Today it is known for having several high tech companies listed. This network of exchange has surpassed the NYSE making it the largest in the world. The NASDAQ is also the world's largest stock exchange in terms of trading volume.

With so many stock markets to keep track of and deal with, it is little wonder that new investors often hunt for reliable stock tips for investing. The basics don't take too long to learn, but becoming an expert may require a little one-on-one training.

A stock is a legal symbol of ownership in a business. When you buy stock, you are actually buying part-ownership of the business. In other words, you become a shareholder. A business will typically spread ownership to hundreds or even thousands of shareholders. Shares are sold when the company wishes to get cash. In a small business, it may be said that the owner has 100% of all shares. However, when a business grows beyond a certain size, it may require capital for expansion and selling shares is the easiest way to do that.

Most stock holders do not really have much say in how the business is run because their ownership proportion is negligible. In order to make a difference, you must own lots of shares or you must work with several smaller shareholders. Now days, buying stock has become more of an investment rather than trying to run the business. You simply buy stock and wait for the company to grow. This will appreciate the stock value and you make money by selling it. Or you could simply make do with the percentage of profits the company gives you based on your shares.

The stock exchange is the place where people trade stocks. The three important share markets in the United States are the New York Stock Exchange, the American Stock Exchange, and Nasdaq. Stocks are bought and sold through stock brokers or Direct Investment and Dividend Reinvestment Plans. The plans allow you to purchase the stock directly from the companies instead of the market.

Wall Street is a famous and important place when it comes to the American stock market. The street is named after the high fence built by the Dutch settlers in New York during the 17th century. Though the fence lasted till 1685, the street next to it was permanently named Wall Street. The history of the American stock exchange begins in Philadelphia. The first stock exchange was built here in 1770. Two years later, the first New York stock exchange was opened, though it was less successful. In 1817, New York stock exchange representatives traveled to Philadelphia to understand why it was more active.

This created a more disciplined and formal New York Stock and Exchange Board. Another important point in this history is the crash of 1929. This crash triggered the Great Depression.

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Both Art Gib & Gabriel Adams are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Art Gib has sinced written about articles on various topics from Supplements, Teachers and self improvement and motivation. If you are looking for some valuable for honing your investing skills, simply visit Blue Chip Stock Trainer (. Art Gib's top article generates over 1830000 views. to your Favourites.

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