New York Stock Exchange
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| New York Stock Exchange (NYSE) | |
| Headquarters | New York, NY |
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| Key People | Duncan Niederauer, Chief Executive Officer |
The New York Stock Exchange, located at 11 Wall Street, is one of the world's preeminent stock exchanges. It merged with Euronext N.V. in 2007 to create NYSE Euronext.
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History
The New York Stock Exchange's origins go back to 1792, when 24 New York City stockbrokers and merchants signed the Buttonwood Agreement, in which they agreed to trade securities on a commission basis. [1] They began by trading five securities: three government bonds and two banks stocks.[2]
These early New York brokers eventually established a formal organization, called the New York Stock & Exchange Board ("NYS&EB") in 1817. They rented rooms at 40 Wall street and adopted a constitution with rules for business conduct. The organization became the New York Stock Exchange in 1863.
The NYS&EB moved to temporary headquarters in 1835 after a fire destroyed more than 700 buildings in lower Manhattan.
In 1857, panic hit the markets after the collapse of the Ohio Life Insurance & Trust Company. Stock prices dropped 8 to 10% during a single trading session. As a result of the "Panic of 1857", stock prices slumped 45% since the first of the year.
Following the outbreak of the Civil War in 1861, the NYS&EB suspended trading in securities of the seceding Southern states.
In 1865 the New York Stock Exchange moved to 10-12 Broad Street, just south of Wall Street. It was also in 1865 that the exchange closed for a week following the assassination of U.S. President Abraham Lincoln.
In 1868, membership at the NYSE became a property right and members could sell their seats.
A day called Black Friday in 1869 caused the market to fall as a result of speculation in the gold market.
In 1873, the NYSE closed for 10 days as a result of severe financial panic following the bankruptcy of Jay Cooke & Company, a prominent Philadelphia banking firm.
In 1907, the Panic of 1907 was triggered by rumors of financial problems at Knickerbocker Trust, a leading New York bank. This triggered a run on banks throughout New York City. This was America's most severe financial crisis to date and it was J.P. Morgan, Sr. who orchestrated a plan to infuse banks with cash and shore up the stock market.
As a result of an outbreak of World War I, the NYSE closes for 4 1/2 months following other securities exchanges around the world. The NYSE shut its doors on July 31, 1914 and was closed for the longest period in exchange history.
In 1929, stock prices fall sharply on October 24 with record volumes. Five days later the market crashes with a new record of 16 million shares traded. October 19, 1929 would be called "Black Thursday."
In 1939, NYSE hires its firm full-time salaried president, William McChesney Martin, Jr.
The war year of 1943 saw the NYSE have women work on the trading floor for the first time, ending the tradition of men only.
On November 22, 1963 the exchange closes early to prevent panic selling after the assassination of U.S. President John F. Kennedy.
In 1970, on February 12, Joseph L. Searles, III became the first African-American member of the New York Stock Exchange.[3]
In 1971, the NYSE incorporated itself as a not-for-profit company.
In 1987, the stock market crashed 508 points, the largest one-day drop in the exchanges history. Volume was an unprecedented 604 million shares traded. This is referred to as the Market crash of 1987 or Black Monday.
In 1997, the Dow Jones Industrial Average plummets 554 points in what was referred to as a flash crash.
On September 11, 2001, terrorist attacks destroy the World Trade Center. The NYSE closes for four days -- its longest closure since 1933 -- and reopens on September 17, setting a volume record of 2.37 billion shares.
Products and Services
Key People
- Duncan Niederauer, CEO
- Jan-Michiel Hessels, Chairman
- Marshall Carter, Deputy Chairman
- Dominique Cerutti, President & Deputy Chief Executive Officer
- Rijnhard van Tets, Chairman of Euronext
