Day Trading

Stock market is the most powerful financial institution all over the world. In fact it is the most dominant trade that drives the economy of the world. Whether it is recession or boom in the economy, the stock market is considered to be primarily after it. There are several stock exchanges trading all over the world. Most of the developing and developed countries have their individual stock exchanges influencing their own economy. But the stock exchanges of the biggest world’s economies affect the overall global economy.

When was the first stock market formed? The answer to this question is a topic of huge debates. Historians debated over this issue but no universally accepted solution was found. But the US stock exchanges have a clear view and recognized history. Initially the government of US started the stock market during the World War I. Bonds were traded to fund the war. These bonds were open to private investors. During that period major banks were also working on the similar project. But in the year 1792, the Wall Street recognized as the center for stock trade. In this year a group of 24 merchants entered into an agreement called as “Buttonwood”. They formed the first organized world stock trading center. This organization was named as New York Stock and Exchange Board which is now known as New York Stock Exchange.

The London Stock Exchange was formed much earlier than the NYSE but it was not well organized to provide enough ground to be called as center for world stock trading. The stocks in London were traded in the coffee shops in the streets of London. After its establishment NYSE became the powerhouse for stock trading. Over 200 years NYSE is the most powerful financial institution and leader among all the other stock exchanges.

In the year 1849 another stock exchange came up in US by the name of American Stock Exchange. This exchange was used by the by companies that did not find space with New York Stock Exchange. But this exchange was taken over by another exchange National Association of Securities Dealers Automated Quotation (popularly known as NASDAQ) in the year 1998. NASDAQ was the first exchange formed in the year 1971 that provided electronic platform for trading stocks. NASDAQ is now the largest exchange in terms of share traded and companies enlisted. Most of the exchanges offer the trading electronically. And for all this the credit goes to NASDAQ innovations.

Since the ups and downs are also the part business. Stock Market too saw both the phases. Moreover this market was primarily was called to be accountable for the same. The most terrifying slump in the economy was the crash of 1929 that then gave to the Global Great Depression in the World’s economy. Another example could be the present time when we all are facing global slow down. Recession has spread its wings all over the world. Consequences can be seen the stock market and somewhere this market has influencing share of responsibility for the call of this recession. The stock market experienced the boom phase in the 1990′s when the technology was growing at the lightening fast speed. It was then where the stocks of the companies not related to technology were also touching the sky.

History of the stock market revels that how the different economic phases can be dealt. Whether it is the time for slowdown or boom, trading in the stock market can be learnt from the history.

History of stock market is quite interesting. There are several benchmarks in this long history when different stock exchanges in the world were formed.

Author: Micheal James
Article Source: EzineArticles.com
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