Wednesday 30 January 2013

A Brief The Past Of Stock Market Growth And Expansion

A brief the past regarding the stock market may tell you that the world's first stock exchange was in Italy or in Egypt or even in France, but no reason where they originated, the concept of a location to trade stocks and bonds has taken firm root and stock exchanges are now the cornerstone of our financial marketplace. First American stock exchange was established in 1792 in New York at the intersection about insurance and Bond Street and it continues to be there today, possessing grown into one regarding the world's most influential stock markets. It is aptly called the New York Stock Exchange. A brief the past of stock market trading shall display that the 1800s were a time of good innovation and growth for the stock market. It was in this 100 years that government bonds, insurance and bank stocks started actively trading.



It was also during this time that street trading was prohibited and the NYSE located a home on Wall Street in a building of its own. Specialists were installed at critical locations on the trading floor to facilitate stock trade. The 1900s were the time regarding the Non-residential Revolution and saw many growth and expansion within the stock markets and their associated regulatory agencies. The Federal Reserve was set up to regulate the banking structure regarding the nation and New York gained popularity as the world's financial capital supplanting London as the previous financial hub. The 1900s also saw the rise of speculators in a secondary trading market.



Eventually this 100 years was witness to one regarding the greatest stock market crashes in history, where stocks plunged and the Dow hit rock bottom by decreasing 89% within the period from 1929- 1932. This period immediately following the stock market crash was called The Good Depression due to the fact that it saw many people lose their savings, lose their jobs and and some even lose their lives. The stock market crash brought about much-needed regulatory changes into the stock market. The result was the passing regarding the Securities and Exchange Act which saw the formation regarding the Securities and Exchange Commission SEC. The SEC is responsible for helping to make sure that that such a crash not ever happens repeatedly by closely monitoring and regulating trading practices and ensuring that businesses release all relevant disclosure to the public at the time of going public.



This day there exists very many of new initiatives taken by the NYSE and other American exchanges for example a paperless office, women on the trading floor, real time stock tickers on CNN-FN and CNBC, an updated cutting edge designs procedure for the trading floor, global indexes, and representative offices around the world. Beginner investors can learn very many regarding the stock market by reading this and other related products outlining the brief the past of stock market buoyancy and crashes - this shall in turn help them understand what powers a bull or bear market and how to spot one coming like the financial professionals do.

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