The Origins of the New York Stock Exchange

Sorinel Cosma ()
Additional contact information
Sorinel Cosma: Faculty of Economics, „Ovidius” University

Ovidius University Annals, Economic Sciences Series, 2012, vol. XII, issue 1, 1344-1348

Abstract: The origins of the stock market go back to the early 1600s, when the first stock (primarily involving the shipping and spice markets) was issued. Later on, the governments of the time decided to sell bonds to raise money for the wars they were involved in. That is precisely what the new U.S. government did during the Revolutionary War. Since they did not have the funds to pay for the war effort, they issued bonds with a promise of repayment in the future. After the war, those in control of the bonds began trading them for immediate compensation. Also, the nation’s first banks started selling shares of their own companies in order to raise money. Merchants recognized the need for a place to exchange these bonds and shares, as well as commodities, which brought about the set up of commercial centers that eventually became the stock exchanges of America. The largest and more powerful stock exchange in America, though not the first one to be created, is the New York Stock Exchange. Since its inception in 1792, the NYSE has set limits and other requirements for the corporations that wished to have their stock traded on the exchange. This very exclusive nature of the exchange led to its becoming the premier exchange in America and one of the most powerful in the world.

Keywords: stock exchange; bonds; shares; brokers; banks. (search for similar items in EconPapers)
JEL-codes: N21 N22 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/ENG/cuprins%20rezumate/volum2012p1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xii:y:2012:i:12:p:1344-1348

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().