When people think of the stock market, they automatically imagine Wall Street in New York City. While it is true that Wall Street is the birth place of the modern stock market, the actual origins of the market are far older.
Many people would like to know when exactly the market began because it is a truly fascinating heritage. History shows that the first evidence of a trade association traces the market’s roots to 11th century Jewish and Muslim merchants with their own methods of payments and credits.
World’s Oldest Stock Exchanges
The London Stock Exchange is one of the world’s oldest stock exchanges, and was established by John Castaing in 1698. The London Stock Exchange currently lists over 3,000 companies, and represents over 80 nations.
The NYSE (New York Stock Exchange) is the most well-known and oldest of all of the American stock markets. Founded in 1792, the New York Stock Exchange has a total capitalization of almost $20 trillion and lists over 2,000 companies on its exchange.
One of the oldest stock exchanges in Asia is the Bombay Stock Exchange. This exchange was established in 1875, and trades approximately 2,000,000 each day.
The History Of Wall Street
1653 marked the year that Wall Street first came into existence, having been set up by immigrants hailing from the Netherlands. The Dutch erected a wall to provide a barrier of protection against possible Indian attacks.
These immigrants had no way of realizing that this basic structure stood on the future location of the financial and economic capital of the world. The original wall stayed in place for 32 years, up until the time is was taken down and a new street was build on the wall’s former site. This street was named Wall Street.
Subsequently, an exchange began on the street, and currently, Wall Street oversees the trading of billions of dollars every day. Prosperity was not always the case, however, as the market has proven to be extremely volatile in the short-term.
Stock Market Volatility
People had become accustomed to risk-free investing in the stock market for years, and in the early 1900s lots of investors had grow very wealthy in the market. The infamous stock market crash of 1929 ended this risk-free era, and launched the Great Depression.
This was regrettably not the last time the market would show huge swings both up and down, but over time has historically risen consistently. Investing in the market carries significant risk, as even one severe crash could potentially wipe out a lifetime of savings.
Learning to spot a potentially good investment for your self by becoming educated in the world of finance and investing. This is the best path to enduring prosperity for yourself and future generations.
If you really want to grow your capital, then you need to find a corporation or industry that has shown financial profitability in the past, as well as has a positive outlook for the future.
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