Wealth buildingDo You Know How Wall Street Began?
The stock market is actually an avenue from which the stock of companies is purchased and sold.
Some people still believe that the stock market and Wall Street are one and the same. However, Wall Street in New York is just a single example of a stock market.
When you review the history of the stock market, Wall Street is quite significant. The concept of the stock market was actually born and developed on Wall Street.
In 1653, an establishment was formally built where Wall Street currently exists. The purpose of this establishment was for defense rather than commerce. Dutch settlers built a 12 foot stockade fence to keep out the British and Native Americans.
By 1685, this defensive establishment was torn down and replaced. The new street was named Wall Street by the British.
What About The Stock Exchange?
Two powerful stock exchanges emerged from Wall Street, which is why it is so famous. As a result of these historical developments, chaotic trading developed and turned into the hectic financial markets we all know today.
In 1790, the first United States stock exchange was founded in Philadelphia. A group of New York traders got together two years later to consider setting up a security business. This group of 24 men ultimately founded what is known as the New York Stock Exchange.
By 1817, New York merchants were upset by the poor state of their stock exchange. One member went to Philadelphia to check out their trading and discovered they were doing quite well in their exchange. The merchant came back to New York and shared how things were done in Philadelphia to improve operations. Within a short period of time, the New York Stock and Exchange Board was formally organized.
This exchange center was inaugurated on world famous World Street and the rest was history. Despite its difficult start, the New York Stock Exchange turned into the place where billions of dollars in stocks and bonds are bought and sold everyday.
The Wall Street success story did not occur overnight, much like any other major enterprise. During the early 1900s, the New York Stock Exchange was on the rise. However, this incredible financial boom could not be sustained because the stock market crashed in 1929. The world was absolutely shocked and the unexpected stock market crash was the cause of the Great Depression.
Slowly the economy recovered over time. Despite this fact, the mistakes of the Great Depression came back to haunt the exchange. The stock market crashed again in 1987. It was such a crippling crash that the Dow Jones actually suffered the biggest loss in a single day in the history of the stock market.
Over the past two decades, the stock market industry and the government have been trying to set up measures to prevent another major crash. Today the stock market is an essential part of the world economy. Thus, it is of the utmost importance to reduce or prevent another stock market crash to protect international economic interests.