Explore the comprehensive history of the U.S. stock market, from its early beginnings in the 1600s through significant milestones like the NYSE's founding, crises, and modern dominance. Understand how it evolved into a global financial powerhouse shaping markets worldwide.

The Development of the American Stock Market

The U.S. stock exchange stands as a vital pillar of America's financial system, tracing a dynamic history over more than a hundred years. Understanding its origins reveals how it grew into a global financial leader, influencing worldwide markets.

Foundational Moments

1600s: Dutch settlers and traders in New York built a defensive wall that evolved into Wall Street, the epicenter of finance.

March 1792: Key traders held a secret meeting at Corre's Hotel in NYC, planning to organize securities trading and curb competing auctioneers.

May 17, 1792: Traders signed the Buttonwood Agreement under a Buttonwood tree, creating rules for self-regulated trading and establishing what would become the NYSE.

Origin of Markets: The Philadelphia Stock Exchange started in 1790 as America's first. Influenced by Philadelphia's success, NY merchants formed the New York Stock and Exchange Board on March 8, 1817, at 40 Wall Street. Membership was exclusive and seat prices increased over time.

In the 20th century, Wall Street experienced great wealth growth but also faced crises. The 1907 panic led to massive securities sell-offs, bank failures, and JP Morgan's creation of a trust. The 1929 crash, or Black Tuesday, wiped out vast wealth, caused panic, and prompted the SEC's formation in 1934. NASDAQ launched in 1971. Today, the NYSE remains the world's largest stock exchange by market value, outpacing NASDAQ, London, and Tokyo combined.

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