NYSE

The New York Stock Exchange (NYSE) can trace its origins back to 1789 when George Washington authorised the issue of $80 million in government bonds to help finance the cost of the American War of Independence.

However, it was not until 1817 that stock traders adopted a formal constitution creating the New York Stock & Exchange Board, direct precursor of the New York Stock Exchange, and a name the market finally took in 1863.

From thirty in 1820 to more than 300 by the end of the American Civil War, the number of companies listed on the NYSE is now heading for the 2,700 mark. The introduction of the stock ticker in 1867 revolutionized market communications. In December 1886, daily volume topped one million shares for the first time. In 1903, the NYSE moved to the location of its present home, at the corner of Broad and Wall Streets.

The most significant development in the first half of the twentieth century came in the wake of the crash of 1929 with the passing of the Securities Act 1933 and the Securities & Exchange Act 1934, and the establishment of the financial watchdog, the Securities & Exchange Commission (SEC).

Eleven years before London's 'Big Bang' of 1986, fixed commissions were terminated in US securities trading. As a result, turnover and participation in the market both soared.

In 1991, in the face of growing competition from the regional markets and from abroad, the NYSE began experimenting with electronic after-hours trading sessions. By the end of the decade, with further competition from ECNs, the market realised that future survival depended on extending its trading hours and began moves to stay open into the middle of the evening.

Last Updated: February 2008 © Moneyextra.com

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