The Origins of the New York Stock Exchange

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.