1653 - 1859 |
| 1653 |
Stockade Erected in Manhattan
A 12-foot-high wood stockade is erected across lower Manhattan from river to river to protect Dutch settlers from attacks by the British and Indians. |
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| 1685 |
Wall Street Laid Out
Surveyors lay out Wall Street along the line of the stockade. |
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| 1790 |
US Investment Markets Born
The federal government refinances all federal and state Revolutionary War debt, issuing $80 million in bonds. These become the first major issues of publicly traded securities, marking the birth of the U.S. investment markets. |
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| 1792 |
Five Securities Traded
There are five securities traded in New York City. Three are government bonds and two are bank stocks. |
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Buttonwood Agreement
Twenty-four prominent brokers and merchants gather on Wall Street to sign the Buttonwood Agreement, agreeing to trade securities on a commission basis. The New York Stock Exchange traces its beginnings to this historic pact. |
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| 1815 |
Securities Market Grows
In the aftermath of the War of 1812, the market for securities in New York begins to grow. Along with government bonds, bank and insurance stocks now trade. |
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| 1817 |
Rules and a Constitution
A constitution with rules for the conduct of business is adopted. |
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Call Market Procedure
Stocks are traded in a "call market." The president reads out the list of stocks as the brokers trade each security in turn. There are two trading sessions each day, one in the morning and another in the afternoon. |
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NY Brokers Form NYS & EB
The New York brokers establish a formal organization, the New York Stock & Exchange Board (NYS&EB) and rent rooms at 40 Wall Street. They adopt a constitution with rules for the conduct of business. |
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| 1824 |
Peak of 380,000 Shares
Annual trading at the NYS&EB had reached a peak of 380,000 shares by 1824, which declined to 15 percent of that number by 1829, remaining low through 1831. |
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| 1825 |
Erie Canal Opens
The opening of the Erie Canal makes New York City the seaboard gateway for the Great Lakes region. New York State bonds, issued to finance the canal, are traded actively on the Exchange. |
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| 1830 |
Railroads Dominate Trading
The first railroad stock, Mohawk & Hudson, is traded on the NYS&EB. Railroad securities will dominate trading for the rest of the 1800s. |
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| 1835 |
Volume reaches 8,500 Shares
Average daily volume reaches 8,500 shares, a 50-fold increase in just seven years. |
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The Great Fire
The Great Fire destroys over 700 buildings in lower Manhattan. The NYS&EB moves to temporary headquarters. |
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| 1836 |
Trading Prohibited in Streets
The NYS&EB prohibits its members from trading in the street. |
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| 1837 |
Average Daily Volume Falls
Following the Panic of 1837, the average daily volume falls from 7,393 in January to 1,534 by June. |
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| 1844 |
Telegraph is Invented
The telegraph is invented, broadening market participation by facilitating communication with brokers and investors outside New York City. |
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| 1853 |
Complete Statements Required
The NYSE strengthens its listing standards, requiring companies to provide complete statements of shares outstanding and capital resources. |
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| 1857 |
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Panic of 1857
The Ohio Life Insurance & Trust Company collapses. Prices drop eight to ten percent in the course of a single trading session, the culmination of a 45% decline in market value since the beginning of the year. |
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