Wall Street History and the Making of a World Financial Capital

In New York City there is a street that is eight blocks long and runs between Broadway and South. This is the Financial District of Lower Manhattan and is known as Wall Street. It is one of the most significant financial markets in the United States as well as the world. All major American financial service companies have a presence on Wall Street.

Leading Financial Center
The developments of the finance markets on Wall Street has made it a leading international financial center. This is a place where two of the largest stock exchanges in the world based on total market capitalization are located. They are the NASDAQ as well as the New York Stock Exchange. There are a number of other major exchanges that currently have their headquarters on Wall Street or were located there at one time. This includes the New York Mercantile Exchange as well as the New York Board of Trade, the former American Stock Exchange, and others.

The Name
There are a number of different theories concerning how Wall Street got its name. Many historians believe it came from the Dutch word “de Walstraat.” This is defined as meaning wall, and many historians believe it refers to the walls built by the Dutch at their settlements to keep out pirates, Native Americans, and others.

First Security Traders
A buttonwood tree stood at the base of Wall Street in the late 1700s. On this spot, speculators, as well as traders, would meet for the purpose of trading securities. The reason this spot was chosen is because of its central location to all of the individuals who wanted to make trades. The traders regularly gathered and eventually decided to formalize their business relationship. They signed a document known as the Buttonwood Agreement, and this was the creation of the New York Stock Exchange. Those who were signatories to the agreement consented to be charged a standard commission rate for their trades. Individuals who did not sight the agreement could still buy and sell securities, but they would be required to pay a higher commission.

Money Capital Of America
Businesses and residences occupied Wall Street for a few decades after the Buttonwood Agreement was signed. This changed with the opening of the Erie Canal during the 1800s. The Erie Canal was the only canal on the east coast of the United States that provided ships with direct access to inland waterways. It is credited with opening up access to the ports on the Great Lakes. Wall Street soon became known as the money capital of American.

Great Depression
During the month of September in 1929, the stock markets at Wall Street had reached their peak. Financial experts believed things could not get any better. During October of that year stock prices began to decrease. Economists told everyone the money they had invested in Wall Street was safe. On October 24, 1929, stock values took a dramatic turn downward. This was the beginning of the Great Depression. It was a time when 25 percent of the the workforce was unemployed. It created a drive to reorganize how things were done on Wall Street. In 1934, the Securities and Exchange Commission (SEC) was created and was put in place. Its goal was regulating stocks, bonds as well as all other types of securities.

Real Estate
During the late 1990s, there was major real estate growth around Wall Street. Many new projects began in the financial district as well as other areas of Manhattan. Over $23 billion was invested by a single firm to improve and expand the real estate projects in the Wall Street area. Real Estate soon became too expensive for some companies. The largest deal in the history of the United States was made in 1998 to prevent the New York Stock Exchange from relocating to Jersey City.

History Of Binary Options
It was initially introduced as an asset that could be traded in 2008. This was done with the Chicago Board of Exchange (CBOE). During that year, financial markets were hurting from the subprime mortgage crisis. Investors worldwide lost significant amounts of money. This was when trading with binary options became a popular type of investing for an average trader. Advancements in technology, information sharing, as well as trading software provided a decrease in restrictions and an increase in flexibility with trading binary options. This form of trading has become very popular with mainstream investors