First Stock Market Exchanges Founded in United States in 1790
The first stock markets in the United States emerged in the late 18th century and early 19th century. These early stock markets laid the foundation for the robust financial markets that exist in the country today. Here is an overview of the development of the first stock markets in the U.S.:
Philadelphia Stock Exchange (1790):
The Philadelphia Stock Exchange, also known as the “Board of Brokers,” was established in 1790 in Philadelphia, Pennsylvania. It was one of the earliest organized stock exchanges in the United States. Initially, it primarily traded government bonds and bank stocks.
New York Stock & Exchange Board (1792):
The New York Stock & Exchange Board, later renamed the New York Stock Exchange (NYSE), was founded in 1792 under the Buttonwood Agreement in New York City. The agreement was signed by 24 stockbrokers and merchants who agreed to conduct their stock trading under a designated buttonwood tree on Wall Street. The NYSE gradually expanded and became one of the most prominent stock exchanges in the world.
Boston Stock Exchange (1834):
The Boston Stock Exchange was established in 1834 in Boston, Massachusetts. It played a crucial role in trading government bonds and insurance company stocks.
Other Regional Exchanges:
During the 19th century, several other regional stock exchanges emerged in cities like Baltimore, Cincinnati, and Chicago, among others. These exchanges primarily focused on local and regional securities.
The Rise of Railroad Stocks:
The mid-19th century saw the expansion of the U.S. economy, particularly with the growth of the railroad industry. Railroad stocks became some of the most actively traded securities on the early stock exchanges.
Regulation and Evolution:
Over time, these early stock exchanges evolved and became more regulated, with the introduction of rules and regulations to ensure fair and orderly trading.
The Securities Act of 1933 and the Securities Exchange Act of 1934 brought significant federal regulation to the U.S. securities markets.
MORE:
History of Philadelphia Stock Exchange »
History of New York Stock Exchange »
Main Image Source: Wikimedia Commons
