Stock Market - A Look Back at History
The stock market is a location where businesses and individuals buy and sell shares of companies and benefit from the returns. As a shareholder, a person enjoys some amount of say over what happens in a company. This investor offers needed financial support to the company and in return benefits from the profits. The number of shareholders owning a company could range from just a few people to thousands- depending on the size and the financial requirements of the corporation. As a business grows, it requires adequate funds to reach its financial goals. When a company is in substantial growth period, it sells shares to the public to gain a stronghold in the market. Offering shares to the public has been a practice with many businesses since the early times.
Companies selling pieces of their business to the public is not a new idea. The financial markets have been a platform for buyers and sellers, where, ideally,both parties share a mutually profitable relationship. The stock market is like the financial backbone of a country- a location where shares of numerous companies are bought and sold. In the United States there are three major stock markets that play a crucial role in shaping the economy- the Nasdaq, the New York Stock Exchange and the American Stock Exchange.
Wall Street is a well known and important financial center in the United States. Here's how it got its name. During the 17th century, before New York City was what it is today, there was a high wall built to defend against British attackers. Eventually that wall was torn down but the name of the street remained as Wall Street.
While we think of Wall Street as the financial hub of the US, history has a different story to tell. Boston was once the countrys financial center. Boston traders played an active part in buying and selling various kinds of commodities as well as dealing in bonds for contracts such as bridges and canals. Even though it is difficult to imagine the financial hub of America as something other than Wall Street, history clearly states the importance of the Boston dealers in creating an active financial market, very much similar to the one found in Wall Street today.
Other countries similarly transacted out their financial activities through their own financial centers. For example, the City of Paris economic activities were carried out on Rue de Quincampoix.
The story of the London financial market is another interesting tale in the history of commerce and finance. The London stock exchange was initially an open market situated on Exchange Alley. Jonathans Coffee House was the financial center where many London traders carried out their financial endeavors. Later the Coffee House was renamed The Stock Exchange.
Over the years, Wall Street gradually picked up business with varied kinds of traders offering countless shares to the public. As time went by, many new banks also began to operate in the market offering attractive deals such as treasury bonds. - 23222
Companies selling pieces of their business to the public is not a new idea. The financial markets have been a platform for buyers and sellers, where, ideally,both parties share a mutually profitable relationship. The stock market is like the financial backbone of a country- a location where shares of numerous companies are bought and sold. In the United States there are three major stock markets that play a crucial role in shaping the economy- the Nasdaq, the New York Stock Exchange and the American Stock Exchange.
Wall Street is a well known and important financial center in the United States. Here's how it got its name. During the 17th century, before New York City was what it is today, there was a high wall built to defend against British attackers. Eventually that wall was torn down but the name of the street remained as Wall Street.
While we think of Wall Street as the financial hub of the US, history has a different story to tell. Boston was once the countrys financial center. Boston traders played an active part in buying and selling various kinds of commodities as well as dealing in bonds for contracts such as bridges and canals. Even though it is difficult to imagine the financial hub of America as something other than Wall Street, history clearly states the importance of the Boston dealers in creating an active financial market, very much similar to the one found in Wall Street today.
Other countries similarly transacted out their financial activities through their own financial centers. For example, the City of Paris economic activities were carried out on Rue de Quincampoix.
The story of the London financial market is another interesting tale in the history of commerce and finance. The London stock exchange was initially an open market situated on Exchange Alley. Jonathans Coffee House was the financial center where many London traders carried out their financial endeavors. Later the Coffee House was renamed The Stock Exchange.
Over the years, Wall Street gradually picked up business with varied kinds of traders offering countless shares to the public. As time went by, many new banks also began to operate in the market offering attractive deals such as treasury bonds. - 23222
About the Author:
C.L. Sommer is a regular contributor to WallStreetSWAT.com, the best source for financial news, real time stock market quotes, economic data and more - offering the Special Weapons and Tactics investors need to navigate the complicated financial markets.
posted by X - Men @ 6:30 AM
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