Stock Market History
Stock Market History Explained
history of stock market
The stock market represents one of the most powerful financial institutions in all of the world. The stock market history in the United States goes back over 200 years.
Initially, the government started the stock market in the U.S. by funding the war with bonds. At that very meeting, they agreed to meet every single day and trade their stocks with each other. This tiny little meeting grew into what we now call the New York Stock Exchange. It’s amazing to think of the impact that those 24 merchants had on stock market history and the world, even in the present age.
During the 1800’s the stock market grew into a pretty powerful arena. In order to fund their new growth, they turned towards selling stocks in their new endeavors. This created a fairly large amount of investors in the country and made the New York Stock Exchange important. By the time the 1900’s rolled around, millions of dollars were being traded at the New York Stock Exchange. Before 1921, the trading actually took place outside on the street. In 1929, one of the darkest times in stock market history, as well American history took place. This helped contribute to $100 billion in lost assets to investors. Banks went under and people lost their money. This was definitely not one of the brightest moments in stock market history.
Today’s world has seen the stock market rebound to incredible heights. The future will undoubtedly write several new and exciting chapters in our country’s stock market history.
Learning About the Stock Market – History
The history of the Stock Market can be traced back over 200 years. Around the same time, private banks saw this method as a way to raise money by issuing stocks or shares of the company. The merchants agreed at the meeting to meet daily on Wall Street to trade stocks and bonds.
The United States experienced a period of rapid growth in the 1800’s and companies realized that investors would be interested in buying ownership in a company through the issuance of stock certificates. As the Industrial Revolution changes America, it also changed the face of the Stock Market. People started realizing they could profit from re-selling shares of stock and thus a secondary speculators market was formed.
While the NYSE listed shares of the largest companies in the country, more people wanted to invest in the stock market but couldn’t afford the larger companies. Smaller companies joined a stock market that eventually became known as the American Stock Exchange.
The huge growth of the stock exchanges attracted more and more participants and it was decided that regulation to protect investors was needed. The quantity of products, stocks and options, available to trade offers something for everyone.
There is a lot to know when investing in stocks like company management, PE ratios, revenues, profits, capitalization, etc. These are called fundamental indicators that many analysts will study to determine the value of a company and the likelihood of future profits and ultimately increases in the companys stock price.
There are a host of technical indicators that traders will study to determine short term directions in stock price like moving averages, stocastics, relative strength, momentum, moving average convergence divergence indicators, bollinger bands and a host of others.
