Stock trading in the US stock market (NYSE, NASDAQ, AMEX)
Speaking about the history of the development of stock trading, it is worth noting that, like everything else in this world, its work has never stood still. Any mechanisms of market economy, with the growth of the public, are in the minds of every person. Therefore, trading floors where purchases or sales of valuable goods (stocks or indices) are made have appeared a long time ago. True, they were originally called markets, malls, fairs or bazaars. In the future, these trading platforms improved with the development of economic relations. Therefore, now everyone knows what stock exchanges are and how to become their member.
A brief history of stock trading
1. The emergence of stock trading
It is believed that the emergence of stock trading through specialized sites occurred during the heyday of the Roman Empire. It was then that merchants, in search of solvent buyers, began to gather in places allotted by the city authorities, where it was possible not only to find a client, but also to get the latest information on current prices for a wide variety of goods, as well as on the value of loan rates of local usurers. Of course, all these events were held directly under the open sky – in squares and streets, which by modern standards cannot be considered normal conditions for such activities.
2. Creation of the first stock exchange
The development of the stock market made a key turn in 1611. It was then that in Holland, and more specifically, in the merchant city of Amsterdam, the very first stock exchange was established in the modern sense of the term. The Amsterdam Stock Exchange served as a global financial center until this honorary role was transferred to the London Stock Exchange. I must say that the history of the Amsterdam Stock Exchange is amusing, since it began with regular meetings of a limited circle of dealers in the most ordinary and unremarkable coffee shop.
Incidentally, after its establishment, this trading and financial institution did not immediately acquire its own premises and all transactions were made in that same coffee shop. That is why until the end of the nineteenth century it was called “Exchange Coffeehouse”. And only in 1802 trade in securities and trade contracts moved to a building specially adapted for these purposes. Its area allowed four and a half thousand people to work simultaneously in it, which at that time was an absolute record.
3. The development of stock trading
At the very beginning of the XVIII century, the epicenter of financial activity began to gradually move from Amsterdam to London. This was due to a sharp jump in industrial production in England. As a result, the famous London Stock Exchange for many years became the place where the most financially large and politically significant transactions of the whole world were concluded. This lasted until in 1792 the famous Wall Street appeared – the stock exchange in New York. With its opening, the London Stock Exchange gradually, but steadily, began to lose its leading position.
It is worth noting that the New York Stock Exchange to this day is the largest in the world. Each professional financier’s ideas about real success and prosperity are connected with it. Getting listed on this monster exchange is extremely difficult. For this purpose, the company needs to meet a number of criteria, the main ones being the presence of at least two thousand shareholders, and a free market circulation of at least a million shares with a total value of at least $ 19 million.
4. The development of stock trading in Russia
As for Russia, the tradition of stock trading here began to take shape in the XVIII century on the initiative of Emperor Peter the Great. It was by his personal decision that transactions with goods began to be concluded by merchants on a stock exchange specially organized for this in metropolitan St. Petersburg. It is worth noting that the Russian stock market from the first day of its inception was not completely independent and developed under the scrutiny of the “king of the eye.” The first independent stock exchange appeared only in 1900 and existed for a short time until the autumn of 1917. The well-known revolutionary events for many years ceased the activity of the domestic exchange market, which was revived only after the collapse of the Soviet Union with the appearance of the Moscow Interbank Currency Exchange, the Moscow Stock Exchange and a number of other institutions.
So what is the US Stock Exchange
The American Stock Exchange is an organized place for carrying out operations for the purchase and sale of securities. Members of the exchange participate in the auction – namely, financial institutions and people who are engaged in trading securities. The stock market uses bonds, stocks (that is, securities) as a commodity. The cost of goods here is the exchange rates for which you can buy them.
US stock exchanges are non-profit organizations, the subject of such organizations is to provide conditions for a stable turnover of securities, an indication of their market price.