the history of the stock market

7/28/2019 The History of the Stock Market

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In March, 1792, twenty-four of New YorkCity's leading merchants met secretly atCorre's Hotel to discuss ways to bringorder to the securities business and to

wrest it from their competitors, theauctioneers.

on May 17, 1792, these merchants signed

a document named the ButtonwoodAgreement


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The agreement calledfor the signers to tradesecurities only amongthemselves, to settrading fees, and notto participate in otherauctions of securities.

These twenty-four menhad founded what wasto become the NewYork Stock Exchange.

The Exchange wouldlater be located at 11Wall Street.


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A century before,Dutch settlers had builta wall to protect

themselves fromIndians, priates, andother dangers. Thepath had become a

bustling commercialthoroughfare becauseit joined the banks ofthe East River withthose of the Hudson

River on the west. Thepath was named WallStreet.


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The New York merchantgroup, realizing that theirstock exchange was nowin decline after the early

tumult of revolutionary warbonds and stock in theBank of the United States,sent an observer toPhiladelphia in early 1817.

Upon his return, bearingnews of the thrivingPhiladelphia exchange, theNew York Stock andExchange Board was

formally organized onMarch 8, 1817.


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The early 1900s sawthe rise of hugefortunes made on Wall

Street. In 1901 J.P.Morgan astoundedWall Street by creatinga billion dollar merger

resulting in the U.S.Steel Corporation

Morgan pressured theleading New Yorkbankers to forestall atotal financial collapseof the country.


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Stock prices were pushed up beyond anyrelationship with the actual worth of thecompanies. In 1929 stock prices were 400% higher

than they had been in 1924. The Insiders had madetheir fortunes and could no longer sustain the con,so on October 23, 1929, the market fell 31 points.Stock prices fell an additional 49 points on October

28 and on the 29th the entire market fell apart.Some brokers and investors jumped out of theiroffice windows. The 1929 crash hit the U.S. evenharder than the one that was to come in 1987. Thefallout from the '29 crash devastated the country,

leading to a long-time economic collapse anddepression that was to continue until the start of theSecond World War in 1941.


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The Wall Street crashof 1987 - "BlackMonday" - occurred

on October 19th

The Dow Jones fellan astounding 508points, largest one-day loss in the stockmarket's history.


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The pressure iscoming from theWhite House,

Congress, the"Federal" Reserve,and anyone else forsale by these

monetary rulers.

the history of the stock market

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