In the beginning, there was no real stock market. However stock exchanges did take place in smaller groups and corporations. This all took place during the 1700’s where stocks were already around for a long time before that but it wasn’t really popular in the United States. Stocks originally started as auctions where traders called out names of companies and the shares available. There was a auction that took place and the shares went to the highest bidders.
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 Philadelphia Board of Brokers set up rules and central offices where trading could take place. They created the Philadelphia stock exchange which is the oldest stock exchange in the United States. In 1817, New York brokers created the New York Stock and Exchange Board which was later renamed to the New York Stock Exchange in 1863.
The United States grew and prospered during the 19th century and more and more companies issued stocks and bonds. More and more people began to invest and many stock exchanges were created all around the country. However, few companies held on and eventually broke up due to other exchanges getting bigger. One of the most popular exchanges in the world today is the New York Stock Exchange. It is one of the oldest exchanges in the United States formed about 20 years or so after the Philadelphia Stock Exchange. One of the short lived companies were the small exchanges formed during the California Gold Rush of 1849. There gave birth to many small exchanges where the public could buy stocks and shares in the mining companies. It flourished for a while until the gold rush ended where the companies went out of business and all trading and exchanges stopped.
The Essay on Shares and Joint Stock Companies in the New Economic Model
Introduction Good morning, dear colleagues. I’m glad to see everyone here. Thank you for your coming. Let me start by introducing myself. My name is Elena Torlopova. I’m a freshman of the State University of the Ministry of Finance of the Russian Federation. I study at the department of the international economic relations. My aim for today’s presentation is to give you information about Shares ...
During the 2nd half of the 19th century New York City became the central financial center of the United States. After that the New York Stock Exchange became the number one trading center. The reason for this being that its members focused on buying securities of larger corporations. At that time all the smaller stocks of smaller companies were handled on the streets of downtown New York City. In 1908 these brokers formed the New York Curb Agency which is now known as the American Stock Exchange. It was renamed to this in 1953.
During the 1920’s millions of Americans began investing in stocks for the first time. They heard about how rich people were getting by investing so they all decided to do it. Many new investors entered the stock market using borrowed money. Stock market prices rose steadily as inflated market demand outpaced increases in the capital value of businesses. Investors began to realize that a large imbalance existed between stock prices and the amount of money needed to back them up, and began to sell. On October 29, 1929, great numbers of people tried to sell their stocks all at once. This created chaos in the accounting of stocks and for brokers. The New York Stock Exchange and other exchanges prices dropped so dramatically that this event became known as the crash of 1929. Millions of investors lost their savings in the crash and many were deeply in debt since they could not repay the money that they had borrowed from banks to buy the stocks.
During the following years of the crash, most investors refused to put money into stocks. They were in fear of another crash and losing their money. Without exchanges and companies making money, many businesses failed and others needed to lay off workers because they could not afford to pay them. The lack of investment was one of the main causes of the Great Depression of the 1930’s , which was an economical crisis which left millions out of work and led to widespread poverty all throughout the United States. This later on effected the entire world. This proved how important stocks are in the flow of business and finance.
The Term Paper on Dhaka Stock Exchange Collapse of 2010—2011
... points and finally crashed in the first quarter of 2011. 1.2 Formation Dhaka Stock Exchange (DSE) is a public limited company. It is formed ... provide support to small investors who lost their capital. 5.3 Steps taken by Bangladesh Bank- Bangladesh Bank pushed money into the market ...
During the Great Depression investors lost faith in stocks partly due to unfair practices and lack of strict rules during and before the 1920’s. During this time stocks were not managed as strict and as ordered as they are now with computers and equipment. They were managed all by hand and on paper. To fix the situation of unfair trading the federal government passed the Securities Exchange Act of 1934 which created the Securities Exchange Commission. This commission regulated stock exchanges and required companies to disclose information that could help the investor evaluate their stock. This also protected investors from having another crash by having stricter rules.
From the end of World War II through 1945 to the 1960’s the economy grew stronger as the Great Depression came to an end. People returned to the stock markets and began to invest all over again. Money loans were carried out through the Federal Reserve Bank had a smaller margin. Before, investors would borrow huge sums of money in order to invest. This was one of the other reasons the Great Depression started when investors couldn’t pay back the money they borrowed.
Stock exchange grew strong throughout the 1970’s and 80’s and new technology in computers allowed stocks to be managed electronically instead of on paper. Their efficiency allowed trades to be made internationally and computer networks have allowed exchanges to connect to eachother. Such technologies however do have a downfall if any computer hacking is occurred. In 1987 the stock market experienced a brief but major crash. Other countries however have had periods of decline. In Tokyo from 1989 to 1990, the Nikkei index of the company TSE dropped almost 50 percent. They eventually rose back up after 1990.
After the 1987 crash, the government established new rules for higher margins. It is unknown whether these new regulations and margins will help investors from getting into another crash in the future.
The Essay on Stock Exchange Market Shares Buy Stockbroker
A stock exchange is a place where you can buy and sell shares. We call people who buy or sell small numbers of shares small investors. Organizations, who buy or sell large numbers of shares, are institutional investors. A stock exchange is the place where companies can raise money to expand their businesses. Companies raise this money by selling shares to investors. At the same time the stock ...
Currently, there are many companies that do not list there stocks on any exchange. These are what make up the Over-the-Counter market. The largest of these companies is NASDAQ, which stands for the National Association of Securities Dealers Automated Quotation system. Mostly high tech companies invest in these markets and they are usually the smaller companies. Larger companies would rather choose the exchanges since they are bigger and more popular stocks.
Bibliography
Microsoft Encarta 98 Encyclopedia CD-ROM
Stock Exchange, by Samuel Case
