The revolutionary beginning of the american stock market

The stock market allows private investors and companies to create more money for investing.

Stock is a term used to symbolize an investor's ownership in a company. Those who own stock are commonly called stockholders or shareholders. As a shareholder, an investor theoretically owns a percentage of everything the company owns or owes. The company's profitability, or lack thereof, determines whether its stock is traded at a higher or lower price.

While trading of debt and commodities has its origins in the Middle Ages, the modern concept of a stock market began in the late 16th century.

Stock markets were started when countries in the New World began trading with each other. While many pioneer merchants wanted to start huge businesses, this required substantial amounts of capital that no single merchant could raise alone.

As a result, groups of investors pooled their savings and became business partners and co-owners with individual shares in their businesses to form joint-stock companies. Originated by the Dutch, joint-stock companies became a viable business model for many struggling businesses. In , the Dutch East India Co.

This exchangeable medium allowed shareholders to conveniently buy, sell and trade their stock with other shareholders and investors. The idea was so successful that the selling of shares spread to other maritime powers such as Portugal, Spain and France. Eventually, the practice found its way to England. Trade with the New World was big business so trading ventures were initiated.

Other industries during the Industrial Revolution began using the idea as a way to generate start up capital. This influx of capital allowed for the discovery and development of the New World and for the growth of modern industrialized manufacturing. As the volume of shares increased, the need for an organized marketplace to exchange these shares became necessary.

As a result, stock traders decided to meet at a London coffeehouse, which they used as a marketplace. Eventually, they took over the coffeehouse and, in , changed its name to the "stock exchange. The idea made its way to the American colonies with an exchange started in Philadelphia in To most people, the name Wall Street is synonymous with stock exchange. The market on Wall Street opened May 17, on the corner of Wall Street and Broadway. Twenty-four supply brokers signed the Buttonwood Agreement outside 68 Wall St.

On March 8, the group renamed itself the New York Stock and Exchange Board and moved off the street into 40 Wall St. The organization that would define the world's economic future was born.

Today, there are many stock exchanges worldwide, each supplying the capital necessary to support industry growth. Without these vital funds, many revolutionary ideas would never become a reality, nor would fundamental improvements be made to existing products. In addition, the stock market creates personal wealth and financial stability through private investment, allowing individuals to fund their retirement and or other ventures.

Museum of American Finance - Wikipedia

Skip to main content. Origins of Stock Stock markets were started when countries in the New World began trading with each other.

Significance The idea was so successful that the selling of shares spread to other maritime powers such as Portugal, Spain and France. History of the Stock Market As the volume of shares increased, the need for an organized marketplace to exchange these shares became necessary. Beginnings of Wall Street To most people, the name Wall Street is synonymous with stock exchange.

Hughes Optioneering

Impact Today, there are many stock exchanges worldwide, each supplying the capital necessary to support industry growth. References 3 Superior Investor: Stock Market History StockMarketStory: Stock Market History Mint Life: The History of the Stock Market.

Resources 2 NYSE Euronext London Stock Exchange. Suggest an Article Correction. More Articles [Corporate Stock] What are the Types of Corporate Stock?

How the Stock Market Was Started & by Whom | ronoxivipyr.web.fc2.com

Also Viewed [Par Value] Par Value of Common Stock [Holding Company] The Advantages of a Holding Company [Preferred Stock] What Happens to a Preferred Stock in a Buyout? Federal Tax Laws] U. Federal Tax Laws on Warehoused Inventory [Common Stock] How to Determine If a Company's Common Stock Still Has Value [Equity Method] Consolidation vs.

How the Stock Market Was Started & by Whom | ronoxivipyr.web.fc2.com

Equity Method of Accounting. Logo Return to Top. Contact Customer Service Newsroom Contacts.

Connect Email Newsletter Facebook Twitter Pinterest Google Instagram. Subscribe iPad app HoustonChronicle.