| Talking about the Stock Market we seem to mean a | | | | The 2 most important stock market networks are the |
| different dimension, not a physical location. | | | | NYSE and NASDAQ. |
| However, the Stock Market does have physical | | | | NASDAQ is a relatively new Stock Trading System |
| locations. | | | | that has been computerized since its inception, where |
| Wall Street, also known as the Dow, or the NYSE, is | | | | market makers normally lead trades. |
| located in New York | | | | It used to be that more risky stocks were traded on |
| Wall Street is the Address(or is it?) | | | | the NASDAQ than on the NYSE, but that distinction is |
| Many people think of Wall Street and the Stock | | | | fading. |
| Market as one in the same, and indeed, it used to be | | | | The difference between the NYSE and Nasdaq is in |
| that way. | | | | the way securities on the exchanges are transacted |
| Dutch settlers initially built a stockade here in 1653 for | | | | between buyers and sellers. |
| defense purposes. | | | | The Nasdaq is a dealer's market, wherein market |
| In 1685 the stockade was torn down and a street was | | | | participants are not buying from and selling to one |
| built called Wall Street. | | | | another but to and from a dealer, which, in the case of |
| In 1790 the first Stock Exchange was founded in | | | | the Nasdaq, is a market maker. |
| Philadelphia which became the model for the New | | | | The NYSE is an auction market, wherein individuals are |
| York Stock Exchange. | | | | typically buying and selling to each other and there is |
| In 1817 the NYSE was officially opened. | | | | an auction happening; the highest bidding price will be |
| The NYSE was moderately successful till the early | | | | matched with the lowest asking price. |
| 1900's when the market entered a boom period which | | | | All these computers are linked to computers |
| lasted more or less until 1929. | | | | worldwide. These computers can be found in banks, |
| This boom period of course could not last forever, | | | | small businesses, and large corporations. |
| things were so out of kilter that people were | | | | These computers comprise the banking networks |
| mortgaging their homes and leveraging themselves to | | | | which make computerized transactions possible. |
| the limit to buy shares. | | | | To give you an idea as to how much gets traded: in |
| The boom period crashed in 1929 and caused the | | | | New York City Stock Market Trades amount to over |
| Great Depression. | | | | $2.2 trillion dollars daily |
| The 1929 Crash was caused in part by the fact that | | | | How has the U.S. Stock Market done in Times of |
| the Stock Market was virtually unregulated, which it | | | | War? |
| remained even until after the market crash of 1987 | | | | The worst Stock Market returns were achieved during |
| which saw the Dow suffer what was the largest | | | | the Vietnam War.If this happened because of the |
| losing day in the Market's history. | | | | uncertainty of the times is a good question. Stock |
| Black Tuesday - October 29th, 1929 | | | | Markets do not like uncertainty and will act negatively. |
| On Black Tuesday, a record of 16.4 million shares | | | | Returns during the Korean War however were |
| were traded and the ticker tape fell behind two and a | | | | excellent and averaged about 18% per year while 2nd |
| half hours. On Monday, the stock market suffered a | | | | world war returns averaged about 13% per year. |
| record one-day loss of around 13 percent. On Black | | | | The 1987 Stock Market Crash |
| Tuesday, the market suffered a loss of about 12 | | | | The crash of 1987 was one of the most remarkable |
| percent and did not recover for 22 years. | | | | financial catastrophies of the 20th century, perhaps |
| The economy eventually recovered from its | | | | since the start of the financial system several |
| catastrophic losses but the unregulated Stock Market | | | | centuries ago. Why it was so strange because it |
| practices that had partially caused the crash in the | | | | should not have happened and even today we cannot |
| 1929 still existed and caused the stock market crash | | | | fully comprehend that it did happen. |
| of 1987, which saw the Dow Jones suffer what was | | | | Markets fell, an unbelievable 23%, and that they did so |
| the largest single-day loss in the stock market's history. | | | | all over the world at the same time. |
| Today's Stock Market | | | | It only lasted one day. |
| Today's stock market consists of about 500,000 | | | | There is no explanation. No definite reason for the |
| computers all networked with dealers for the NYSE or | | | | crash has been isolated. |
| market makers for the NASDAQ. Up until recently the | | | | The best that one can say is that there were too |
| Dow still used human intervention but at present all | | | | many similarities to the 1929 crash and that this |
| trades are computerized. | | | | became a self-fulfilling prophecy. |