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The Intriguing History Of The Stock Market

Discussing the Stock Market

In discussing the Stock Market we seem to mean a different dimension, not a physical area.

Nevertheless, the Stock Market does have physical areas.

Wall Street, likewise called the Dow, or the NYSE, lies in New York

Wall Street is the Address( or is it?).

Many people consider Wall Street and the Stock Market as one in the same, and undoubtedly, it used to be that way.

Dutch inhabitants initially constructed a stockade here in 1653 for defence purposes.

1685:  The stockade was torn down and a street was developed called Wall Street.

1790:  The first Stock Exchange was founded in Philadelphia which ended up being the design for the New York Stock Exchange.

1817:  The NYSE was formally opened.

When the market went into a boom duration which lasted more or less until 1929.  The NYSE was reasonably effective till the early 1900’s.

This boom period naturally could not last forever.   Things were so out of kilter that people were mortgaging their houses and leveraging themselves to the limit to buy shares.

The boom period crashed in 1929 and triggered the Great Depression.

The 1929 Crash was triggered in part by the fact that the Stock Market was virtually uncontrolled.  It remained so even till after the marketplace crash of 1987.  The Dow would suffer what was the biggest losing day in the Market’s history.

Black Tuesday – October 29th, 1929.

On the infamous day of Black Tuesday, a record of 16.4 million shares were traded and the ticker tape fell behind two and a half hours. Following that Monday, the stock market suffered a record one-day loss of around 13 percent. On Black Tuesday, the market suffered a loss of about 12 percent and did not recuperate for 22 years.

The economy eventually recuperated from its devastating losses.  The unregulated Stock Market practices that had partly triggered the crash in the 1929 still existed and triggered the stock market crash of 1987.  This saw the Dow Jones suffer what was the largest single-day loss in the stock exchange’s history.

Today’s Stock Market.

Today’s stock exchange consists of about 500,000 computers all networked with dealers for the NYSE or market makers for the NASDAQ. Up up until recently the Dow still used human intervention however at present all trades are computerized.

The 2 most important stock market networks are the NYSE and NASDAQ.
NASDAQ is a relatively new Stock Trading System that has actually been computerized because its inception, where market makers usually lead trades.

It utilized to be that more dangerous stocks were traded on the NASDAQ than on the NYSE, however that distinction is fading.

The distinction between the NYSE and Nasdaq is in the way securities on the exchanges are negotiated between sellers and purchasers.

The Nasdaq is a dealer’s market, wherein market individuals are not purchasing from and offering to one another but to and from a dealership, which, when it comes to the Nasdaq, is a market maker.

The NYSE is an auction market, wherein people are typically offering and purchasing to each other and there is an auction taking place; the highest bidding cost will be matched with the lowest asking price.

All these computer systems are linked to computer systems worldwide. These computer systems can be discovered in banks, small businesses, and large corporations.

These computers comprise the banking networks making digital transactions possible.
To offer you an idea as to what does it cost? gets traded: in New York City Stock Market Trades amount to over $2.2 trillion dollars daily.

How has the U.S. Stock Market done in Times of War?

The worst Stock Market returns were achieved during the Vietnam War.If this occurred since of the unpredictability of the times is a good concern. Stock Markets do not like uncertainty and will act adversely.
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Returns during the Korean War however were excellent and averaged about 18% per year.  During the 2nd world war returns balanced about 13% each year.

The 1987 Stock Market Crash.

The crash of 1987 was among the most remarkable financial catastrophes of the 20th century.  Perhaps because the start of the financial system several centuries earlier. Why it was so strange since it should not have taken place?   Even today we can not totally comprehend that it did occur.

Markets fell, an incredible 23%, and that they did so all over the world at the exact same time.

It only lasted one day.

There is no explanation. No certain reason for the crash has been isolated.

The very best that one can say is that there were a lot of similarities to the 1929 crash which this ended up being a self-fulfilling prophecy.

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