The stock market has become an extremely popular method of investing large sums of money but this leaves many people wondering about stock market history. The history of the stock market is actually pretty interesting and puts everything into context.
As much as it can be very exciting, it is also a moody beast that cannot be contained or predicted. Named a Bull or Bear depending on it’s mood, it can create millionaires out of nowhere and destroy family fortunes overnight!
The Birth Of The Stock Market
It’s thought that the first stock certificate which was ever issued was in 1606 by a company involved in spices. This company managed to survive until 1799 until it became bankrupt. This original share certificate is worth a lot more than the face value of the certificate because it is now a collectable.
Alexander Hamilton was the first secretary of the Treasury and his was his decision to promote stock exchanges. He is remembered with a statue which is placed in Wall Street.
NYSE and AMEX
The New York Stock and Securities board was created in 1817 and this has since become the New York Stock Exchange. In 1842 the AMEX or American Stock Exchange was founded. This is a vital piece of stock market history which should never be forgotten.
Stock Market Popularity
During the 20th Century the stock market became a huge success and it was possible for some people to become very rich by playing the stock market effectively.
Most people may recall that the stock market hasn’t always been very stable. There have been many times when the stock market has gone through crashes and booms which have made it very difficult for investors to make money.
In 1907 a large number of stocks were sold very quickly which meant that stock market prices would fall and create a recession. During the 20’s the stock market was popular again but there was another stock market crash in 1929 which resulted in bankrupting some very rich families.
This was the great recession which even saw some people commit suicide by jumping out of windows.
1987 – Black Monday
The most recent big crash was in 1987 and was known as Black Monday. When investing on the stock market you have to be prepared to take the bad times with the good times. Stock market history has proved time and again that some people can become very rich by investing in the stock market, but other people can lose millions of dollars. It can both make you and break you!