How much do you really know about stock market history? When most people think about the history of the stock market they automatically think about Wall Street. It is often assumed that Wall Street was the world’s financial center. What most people don’t realize it that Wall Street was originally named in 1644. It was a road on Manhattan Island where the Dutch built a wall in an attempt to keep the British from attacking them. It was Boston who was in charge of America’s finances at this time. During this time most of your buying and selling of bonds was done through Boston dealers.
Belgium was actually the worlds first to establish a place for stock market exchanges. Then in the early 1600′s merchants and traders from Berlin were conducting their business in Schlossgarten. However, London’s brokers started doing their business at a coffee house known as Jonathon’s in 1725. In 1773 this coffee house was renamed The Stock Exchange. In 1792 the United States of America would finally organize a place for formal stock and bond trading.
In 1792 when the United States created a place for stock exchanges they built it on the Manhattan Island of New York. This place is better known as Wall Street and was the center of commerce. Wall Street is located east of Broadway. It later also became the name of the surrounding geographic neighborhood. George Washington took the oath of office in 1789 from Federal Hall overlooking Wall Street. The Bill Of Rights was also passed here.
In colonial days the government promised to pay back the money they needed to use to support the war. In a vain effort to raise money local banks were issuing stock from their companies. Around this time people were starting to figure out that they could place money in stocks and as long as the stock market did not crash they could make a fortune off of it.
Within a couple years there was a sudden increase in the population of the United States. This in turn caused a major dilemma because companies didn’t have enough money to support the increase of population. As they tried to find ways to resolve the issue they invested money in buying stock. History has proven how big a role stocks have played in the expansion of most companies. It also shows us how the Industrial Revolution has effected it.
The effect of the stock market crashing was devastating. Many people lost their jobs, their fortunes and some even lost their lives. This in turn brought on the great depression. The great depression was so severe that even businesses did not have enough credit to pay with check. It also caused them to have problems with their inventory and people that had deposited money had no choice but to sit back and watch their money disappear as their banks crashed.
Now that we have talked all about stock market history you should understand more about it. There is also much more information out there if you would like to know more. The stock market history is also very interesting. If you wish to invest money in the stock market you will classify it was either fundamental or technical analysis. However, most people invest through the index method.