• The Interesting History Of The Stock Market

    When we talk about the stock market, we think that there is a physical dimension, not a physical position.

    However, the stock market has a physical position.



    Wall Street, known as the Dow or NYSE, is located in New York

    Wall Street address (or is it?)


    A lot of people think of Wall Street and the stock market as the same thing, and really, that's how it was used.


    The Dutch settlers initially built a stockade here in 1653 for defensive purposes.

    The stockade was demolished in 1685 and a road was built called Wall Street.

    The first stock exchange was established in Philadelphia in 1790 which became the model of the New York Stock Exchange.


    In 1817 NYSE was officially launched.

    The NYSE was moderately successful within the early 1900s when the market entered a boom period that lasted more or less until 1929.


    Of course, this boom period did not last forever, things were so deadly that people mortgaged their homes and profited themselves to the extent of buying shares.

    The boom period crashed in 1929 and caused great frustration.


    The 1999 crash was because the stock market was virtually regulated, which continued even after the 1977 market crash, which saw Dau take the biggest rate day in market history.


    Black Tuesday - October 29, 1929


    Black Tuesday, a record 1 16.4 million shares were traded and the ticker tape fell two and a half hours behind. The stock market suffered a record 13 percent loss in the ODIs on Monday. On Black Tuesday, the market suffered a loss of about 12 percent and has not recovered in 22 years.


    The economy has finally recovered from its catastrophic losses, but regulated stock market practices that partially crashed in 1999 and the stock market crashed in 1987, saw the Dow Jones that the biggest single-day loss of the stock was in market history.


    Today's stock market


    Today’s stock market has about 500,000 computers that are networked with dealers for all NYSE or market makers for Nasdaq. Until recently the Dow still used human intervention but now, all trade is computerized.


    The 2 most important stock market networks are NYSE and Nasdaq.

    Nasdaq is a relatively new stock trading system that has been computerized since its inception, where market makers usually lead the business.

    It used to be that more risky stocks than NYSE were traded on the Nasdaq, but this difference is fading.


    The difference between NYSE and Nasdaq is the way securities on exchanges are traded between buyers and sellers.


    Nasdaq is a trader's market, where market participants buy from each other and not sell from a trader, and in the case of Nasdaq, the market maker.


    NYSE is the auction market, where people usually buy and sell from each other and there are also auctions; The highest bidding price will match the lowest bid.


    All of these computers are connected to computers worldwide. These computers can be found in banks, independent ventures, and huge enterprises.


    These computers have a banking network that makes computerized transactions possible.

    To give you an idea of how much you trade: the New York City stock market trades more than 2 2.2 trillion a day.

     

    How did the US stock market work in the Times of War?


    The worst stock exchange returns were achieved during the Vietnam War. A good question is if this happens due to time uncertainty. Stock markets don't like uncertainty and can act negatively.


    Returns were great during the Korean War and averaged about 18% per year and averaged about 13% per year during World War II.


    1987 Stock market crash


    The 1976 crash was one of the most significant financial disasters of the twentieth century, probably after the financial system began many centuries ago. Why it was so strange because it shouldn’t have happened and even today we don’t fully understand that it happened.


    Markets have shrunk, an incredible 23% and they have done so worldwide at the same time.

    It only lasted one day.


    There is no explanation for this. No specific cause of the disaster has been identified

    The best that can be said is that there are many similarities with the 1929 crash and it has become a self-fulfilling prophecy.

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