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Video Report 1 Modern Marvels The Stock Exchange

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Video Report- Modern Marvels: The Stock Exchange
The Wall Street Background
Currently over a million shares are exchanged.
The stock exchange market creates a two-fold approach whereby people can either
transact stocks at their own convenience or a company can offer ownership to numerous
small investors thereby raising millions of dollars.
Approximately 40 percent of American families own stocks all over companies in the US
either by pension plans or by mutual funds.
Through the exchange, people can place a value on the stock.
Unlike in the beginning, the stock market is currently highly regulated.
Rogues and Racketeers
The ancient Greece holds the roots of investors.
o This was an all or nothing type of gamble
o The ship captains found the individuals willing to share the risk of investing in a
trading voyage and they would proceed to offer them parts of their profits.
As for the Romans, they invested heavily by selling stocks for the massive construction
projects that would not be managed single-handedly.
In the 1600s, the practice of investing in stocks moved to another level in Holland when
the Dutch were in need of money to facilitate their travel.
Although they sold their shares, the market was significantly volatile because most of the
information was based on speculation.
In the 1700s stock brokers had their reputation tarnished because of John Laww also
engaged in the same yet he was an escape murderer.
Due to the presence of stocks, Europe became an economic and colonial stronghold
across the globe.
There were lies in London concerning the invention of a device that was capable of
turning chicken into sheep.
Wall Street is Born
The birth of Wall Street was in New York which was a small colonial post
Certain individuals were kept out of the location based on the Buttonwood agreement.
Buying and selling of stocks was not a public event.
Must hire a broker.
Only reputable stocks were traded and regulations were put in place.
Open auction system.
The NYSE Board was aimed at stopping abuse and fraud.
Individuals intending to control a company and speculators were predominant.
Bulls and Bears
Characterized by the terms bulls and bears that originated from the old Wild West.
Began as a gambling contest between the bulls who expected a rise in stock prices while
bears expected a decline.
No governmental regulations.

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Eddie Green was among the infamous bulls also known as the ‘witch of Wall Street’
She became the richest woman by investing in railroads.
Jay Gould: a famous speculator and great manipulator in the market.
In 1870 brokers made trades throughout the day.
In 1920s Curbstone brokers flock the street while trading outdoors for smaller companies
before the establishment of the American Stock Exchange.
Market crashes could occur and close the exchange for days.
WWI makes the exchange closed for 4 months because of panic.
The Information Age
1832: the telegraph invented by Samuel Moors revolutionizing the exchange market.
It allowed the dissemination of news and information from distant cities across the
nation.
Wired turning New York into the financial capital of the US from telegraph invention.
1867: the invention of the stock ticker.
Presented minute prices to brokers through narrow paper tapes.
1889: first issue of Wall Street journal sold for 2 cents.
The Dow was adopted as the barometer for the stock market.
o Dow Jones Industrial Average
The Most Powerful Man
Named JP Morgan.
Combined a vast array of independent railway companies into monopolies: coast to coast.
Most significant achievement: combining 9 major companies to form the US Steel.
Never gambled but believed in fundamental business strategies.
Insisted on a management role for each company he created.
Controlled over 100 companies with 341 board seats in total.
Did not trust the stock market
Investors respected him but not the public
Seven years after his death there were terrorist attacks on his home.
Opposed labor unions while promoting child labor.
His demise in 1913.
America’s Spending Spree
1920s: stock exchange was glamorous after WWI and money was spent as factories
flourished.
Each stock traded at a post
Trading buildings had their outside looking better than government buildings.
Specialists: a name for auctioneers managed and controlled the bidding.
Average for stocks up to 300% based on the Dow Jones Industrial Average.
o High demands skyrocketed prices
Influx of investors buying stocks on margin or credit.
o Bad financial situation
o The panic stops temporarily but proceeds to decline over a week.
1928: Lynch argues it’s the most appropriate time to recover out of debt.
Pain and Ruin
1929: consumer spending falls.

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Student Professor Course Date Video Report- Modern Marvels: The Stock Exchange The Wall Street Background • Currently over a million shares are exchanged. • The stock exchange market creates a two-fold approach whereby people can either transact stocks at their own convenience or a company can offer ownership to numerous small investors thereby raising millions of dollars. • Approximately 40 percent of American families own stocks all over companies in the US either by pension plans or by mutual funds. • Through the exchange, people can place a value on the stock. • Unlike in the beginning, the stock market is currently highly regulated. Rogues and Racketeers • The ancient Greece holds the roots of investors. o This was an all or nothing type of gamble o The ship captains found the individuals willing to share the risk of investing in a trading voyage and they would proceed to offer them parts of their profits. • As for the Romans, they invested heavily by selling stocks for the massive construction projects that would not be managed single-handedly. • In the 1600s, the practice of investing in stocks moved to another level in Holland when the Dutch were in need of ...
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