Stock Market History To Present Day
The stock market is a place or a market where company stocks and derivatives are traded at an agreed price that is dictated by supply and demand. People generally are not aware of detailed information about the stock market or anything about stock market history. Many have an abstract idea of the workings of the stock market and find it very uncomfortable dealing with it whilst others buy stocks without leaving their computer terminal. The stock market is a place with building and addresses, a place where you can visit and do business. Wall Street the Trading Destination
Many people feel that the stock market and Wall Street are the same and they view it also with one reality but in general it's different. Wall Street is a place where the whole financial business started and prospered. The stockmarket evolved from Wall Street and has its own language and vocabulary. Trading History Two stock exchanges emerged from Wall Street, and thus started the chaotic trading and financial market which we know today as stock market. In the year 1970, the first stock exchange in America came into existence in Philadelphia. Two years later New York merchants discussed securities and then a group of 24 men founded the New York Stock Exchange. In 1817 the merchants found that the New York exchange was not functioning as successfully as the exchange in Philadelphia. They sent some representatives to the Philadelphia exchange to understand the robust exchange tricks. Upon arrival the representatives set up the Exchange Board. The exchange board also opened a shop in Wall Street and since then the New York Exchange has moved from its humble beginnings to the billions of dollars worth traded per day today. In the year 1929 the stock exchange market crashed suddenly due to global psyche and national nay which triggered off the downfall which was later referred to as the Great Depression. With the Great Depression, the people realized that the markets could not sustain a boom forever as the graph fluctuated; therefore they chose to let the market be its own jury and executioner. As a result of this many people lost their hard earned money in a single day and that was one of the black days in stock market history. After this downfall the markets tightened their belts and reduced the risk rates but the stock market crash cannot be ruled out. Current Market Current market comprises of 300,000 computers and pro traders that deal by seeing the brief charts through the computers which are highly networked using sophisticated protocols. This information sharing makes the market function smoothly and makes pricing almost function like science. These 300,000 computers are linked to a further 26 million computers worldwide. These 26 million computers are located in various banks, large corporations and small businesses. These computers comprise of all the banking networks, thus making computerized transaction easy and comfortable. Finally the 26 million computers are connected further to another 300 million computers that connect and disconnect and handle financial markets on a daily basis. $2.2 trillion dollars transactions are handled daily in the New York Stock Exchange. Trading Tricks In the stock market the participants range from the small time individuals to large hedge fund traders who can come from anywhere. Some transactions are carried out in person and this is known as open outcry. These type of auctions are usually done for commodity exchanges, where the brokers present verbal bids and then the decision is taken based on profitability. The other exchange is the virtual one, where the computers do the work of the brokers where the bids are made electronically via traders. Stock exchange facilitates the exchange of securities between the sellers and the buyers. The exchange provides real time trading information based on the listed securities. Nowadays people can trade many different markets such as the Nikkei, FTSE 100 and the DJIA. Tutorials on things such as learning Level 2 are also available in written and video format. New York Stock Exchange is also called a listed exchange as trading is done only on the listed stocks. I hope you have enjoyed this insight into stock market history, both past and present. |
