Short History of the Stock Market

When people think of the history of the stockagreement to organize this exchange was formed.
market the first thing they tend to think about is theToday the NYSE lists over 2,700 securities and is the
stock market crash of 1929. The history of theworld's largest stock exchange by dollar volume,
stock encompasses a much broader range of eventsthough it is the fourth largest in terms of company
and place though. For example, throughout the world,listings.
investors watch everything from the London StockThe American Stock Exchange (AMEX) is a
Exchange and the New York Stock Exchange, to themember-owned organization that was established in
Bombay Stock Exchange and the NASDAQ.1842, and was known as the New York Curb
Early American trading history starts in the late 18thExchange until 1929. AMEX started out like many
century with stock brokers meeting outdoors at theother markets at the time, outdoors on the curb. It
curb (thus they were known as curb brokers) towasn't until 1921 that the American Stock Exchange
trade amongst themselves. Often braving themoved indoors in Manhattan. Today, the building is a
elements such as the wind and rain, as tradingNational Historic Landmark.
activity grew stock brokers developed a system ofThe National Association of Securities Dealers
hand signals so that brokers could make trades asAutomated Quotations (NASDAQ) is another
the activity and noise levels grew.American stock exchange established in 1971. An
This system of hand signals has become an iconicinteresting note regarding NASDAQ is that the
part of Wall Street, with the common public image ofcompany that owns and operates the whole
brokers screaming on the floor, frantically wavingorganization is itself publicly traded and is listed on the
hand signals.very stock exchange they manage.
The London Stock Exchange started in 1698 and wasThe NASDAQ is considered to be the first electronic
the very first exchange to begin. This exchangestock market. Today it is known for having several
began in a coffee house and included a simple list ofhigh tech companies listed. This network of exchange
stock and the prices of the commodities. Today, thishas surpassed the NYSE making it the largest in the
exchange has over 2,500 companies in over 55world. The NASDAQ is also the world's largest stock
countries.exchange in terms of trading volume.
The New York Stock Exchange (NYSE) wasWith so many stock markets to keep track of and
developed in 1792 and is the first exchange indeal with, it is little wonder that new investors often
America. This exchange included dozens ofhunt for reliable stock tips for investing. The basics
stockbrokers who had a new idea for organizing thedon't take too long to learn, but becoming an expert
chaos of trading stocks that currently existed. In anmay require a little one-on-one training.