Timeline of the Stock Market
Timeline of the Stock Market
Government securities and other investments were traded by merchants and financiers in the 13th century. To aid their own economic growth, most large European cities followed this pattern and sold debt-based securities to investors.
Our modern stock market did not come into being, however, until 1602 when the Dutch East India Company listed the first privately held stocks on the Amsterdam Stock Exchange when they were issued.
When other business owners saw the potential in selling their company's shares as a means to grow and expand, the stock market really took off.
A number of New York stockbrokers did not publicly establish the regulations for stock dealing until 1792 when they established the New York Stock Exchange board. They committed to meeting every day to swap bonds and equities.
When telegraph signals sent via Morse code were successfully communicated in 1844, allowing investors to send and receive stock market quotes, the New York Stock Exchange grew considerably to attract investors outside of New York. The stock ticker, which first appeared in 1867, gradually supplanted it.
The first cable connecting New York and London across the Atlantic Ocean was laid in 1866. While this enabled instantaneous communication between the two nations' stock markets, the New York Stock Exchange did not place telephones on the trading floor until 1878.
In 1896, the Dow Jones industrial stock average was introduced in the Wall Street Journal. The Securities and Exchange Commission (SEC) was established in 1934 to oversee the stock and bond markets. The rules that businesses had to follow in order to go public with their stock offerings were partly regulated by the SEC. Additionally, it ensures compliance by monitoring the everyday operations of market exchanges.
In 1971, trading officially began on the National Association of Securities Dealers Automated Quotation, also known as the NASDAQ. This marked the beginning of the first electronic stock exchange in the world. In 1994, the first stock trade was executed through the Internet.
Historical Order of Notable Stock Market Crash Dates
The stock market has seen numerous economic downturns and investor panics over its lengthy and varied history, and it has also witnessed some remarkable recoveries. One way to regain some faith in the stock market's capacity to rebound from even the most devastating catastrophes is to remember that stock market dips are really more common than many investors make them out to be.
The Dutch stock market crashed in 1637, with a precipitous 90% drop in value.
The government assumed full responsibility for the nation's debt in 1720 after the London stock market collapsed.
A gold price fall and the first Black Friday on Wall Street were both started in 1869 when two American investors tried to dominate the gold market.
There was a panicky sell-off of stocks in 1873 when the most respectable stock brokerage firm in America went bankrupt. As a result, two large brokerage houses and 37 banks went under.
A new wave of panic ensued in 1884 when another major stock brokering firm went bankrupt. Fifteen additional significant brokering firms went bankrupt as a result of this frantic sell-off.
The United States entered a severe economic depression in 1893 as a result of another stock market disaster.
After the 'Rich Man's Panic' crash of 1903, the financial world went into a tailspin in 1907 due to the publication of news about the problems plaguing a big New York bank.
During the infamous Black Thursday and Black Monday of 1929, the US stock market had its greatest one-day price drop ever. Prices dropped even more the following day, on Black Tuesday. In reaction, stock prices fell globally, although it took until 1932 for the market to hit rock bottom.
The 1987 stock market crash, in which the Dow Jones dropped 22.61% in a single day, was more significant than the Black Monday one-day percentage decline in stock market pricing.
With a 777-point drop in 2008, the Dow Jones had its worst one-day price drop ever.
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