History of stock exchanges
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments.
Here is a concise timeline of the history of stock exchanges, highlighting key dates and events from their inception to 2024:
- 1602 - The Dutch East India Company issues the first shares on the Amsterdam Stock Exchange, considered the world's first official stock exchange
- 1698 - The London Stock Exchange (LSE) begins informally when brokers start trading stocks in coffee houses.
- 1792 - The New York Stock Exchange (NYSE) is founded under the Buttonwood Agreement, signed by 24 stockbrokers in New York City.
- 1801 -The London Stock Exchange formalizes its operations with a set of rules and regulations.
- 1817 - The NYSE reorganizes and establishes a constitution, becoming a leading financial institution.
- 1848 - The Chicago Board of Trade (CBOT) is founded, focusing on commodity trading.
- 1865 - The Bombay Stock Exchange (BSE), Asia's first stock exchange, is established in India.
- 1896 - The Dow Jones Industrial Average (DJIA) is introduced, tracking 12 industrial stocks as a market performance indicator.
- 1929 - The Wall Street Crash marks the beginning of the Great Depression, highlighting the risks of speculative trading.
- 1934 - The U.S. Securities and Exchange Commission (SEC) is established to regulate the securities markets.
- 1971 - The NASDAQ launches as the world's first electronic stock exchange, revolutionizing trading with its digital platform.
- 1987 - The Black Monday Crash sees global markets plummet, with the Dow Jones losing 22% in a single day.
- 1990s - The rise of online trading platforms democratizes stock trading for retail investors.
- 2000 - The dot-com bubble bursts, leading to significant losses in tech stocks.
- 2008 - The Global Financial Crisis causes widespread market crashes, driven by subprime mortgage failures.
- 2020 - Stock markets experience extreme volatility due to the COVID-19 pandemic, followed by a rapid recovery fueled by monetary stimulus and tech stock growth.
- 2021 - The rise of meme stocks like GameStop, driven by retail investors on platforms like Reddit, disrupts traditional trading norms.
- * - Growth in ESG (Environmental, Social, and Governance) investing as sustainability becomes a priority.
- * - Increased adoption of blockchain technology and tokenized securities in trading.
- * - Expansion of AI-driven trading algorithms and quantitative finance strategies.
- * - Global exchanges like NYSE, LSE, and NASDAQ continue to dominate, while emerging markets in Asia and Africa gain significance.
19th Century
20th Century
21st Century
2024
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."
-- Warren Buffet