History of The Stock MarketThe history of the stock market stretches as far back as 1606. It was then that the first stock was issued for the Dutch company Vereignigte Oostindische Compaignie. 
History of the Stock Market in America The American Colonists brought with them the idea of the stock market. But it wasnt until Alexander Hamilton, the first secretary of treasury for the US, did anyone attempt to create a stock exchange in the New World. During his term 1789 to 1795 he promoted the stock market exchange in the US by encouraging trading of government debt on the corner of Wall Street and Broad Street. The exchange grew to incorporate stocks, and as trading grew so did the building. The structure is now a 71 story tower known as Trump Building, after Donald Trump who bought it during 1996. Today visitors to New York, the heart of the American stock market will find a statue of Hamilton on Wall Street. Technical Analysis The oldest method to beat the market is Technical Analysis. This is the study of hundreds of years of observations, from price patterns and human emotions. The first known Technical Analysis method was developed by Homma Munehisa during the 18th century and involved using candlestick patterns to predict market tops and bottoms. Dow Theory is based off of the writings of Charles Dow and inspired the development of modern technical analysis. Throughout history this form of stock analysis has been ignored by the majority of the investment community because it ignores fundamental data such as cash flow statement and the balance sheet. Today however this form of investing has become widely accepted in the field, and most brokerage firms look at both fundamental and technical data. Value investing The concept of investment is simple; you buy a stock for cheap and sell it for more in the future. No other theory attempts this as much as value investing. In the early 20th century investors were guided by only speculation and insider information. In the 1920s however, at Columbia Business School two finance professors Benjamin Graham and David Dodd developed a new theory of getting into a stock. They believed it was possible to determine a stocks true value, and by getting into stocks at a price lower then that value you would make money. Graham began teaching his reason based approach in 1928. Since them it has lead to many huge fortunes including the fortune of Warren Buffet the richest man in the world. Summary The history of the stock market stretches back to the 17th century and has come a long way. Who knows how it will change in the future of mankind. Want to know more about the history of the stock market? Visit the Stock Market Timeline 1929 Crash of Stock Market and the Facts About the Great Depression pages. Also take a look at the Stock Market History Graph page to see a graph of the market from 1928 to the mid 2009. Other Stock Market History Articles Articles on the Great Depression Life During The Great Depression Unemployment During The Great Depression The Great Depression in Australia Effects of the Great Depression
|
