History of Wall Street, the World's Leading Financial Center

Wall Street, One of the World's Oldest Financial Markets

     Wall Street. This name is often used to describe the financial industry and the companies in it, as well as the home of the New York Stock Exchange (NYSE). But what is Wall Street exactl

Wall Street is a name often used to describe the financial industry and the companies that comprise it, and is home to the New York Stock Exchange (NYSE). But what is Wall Street exactly?

Wall Street is actually the name of a street at the southern tip of Manhattan, New York, United States (US). Over time, Wall Street was used to describe the financial industry in the US which started with the many brokers, a number of investment and securities companies that settled there to get closer to the NYSE which was also in the area.

Today, Wall Street is used as a term to describe the financial industry, which includes stock exchanges, stock brokers, securities, major banks, and underwriters in the US. In fact, Wall Street is often interpreted as an investment business, motivation, and the attitude of the players.

Even though industry players are scattered across the US, the name Wall Street is still used as a collective designation for the local financial market. Events that take place on Wall Street often have an impact not only on the investment industry, but also on the US economy, even worldwide.

The History of Wall Street

Wall Street gets its name from the wooden walls built by Dutch colonialists in Manhattan in 1653 to defend themselves from the British and Native Americans. The wall was torn down in 1699, but the name has stuck.

The Wall Street area became a bustling commercial hub in the 1700s. It became a financial center in 1792 when 24 of America's most prominent brokers and traders signed the Buttonwood Treaty which gave birth to several traded financial instruments, including war bonds, and banking stock for institutions such as the Bank of New York, First Bank of the United States, and the Bank of North America.

In 1817, the Buttonwood brokerages named themselves The New York Stock and Exchange Board. The organization leased space to trade at several locations until 1865, and they settled in their own location, on the corner of Wall and Broad Streets.

After World War I, New York City overtook London to become the world's largest and most significant financial center, and its center was in NYC, in this case Wall Street.

As the US economy grew, several other major stock exchanges established their headquarters in the Wall Street area, starting with the New York Board of Trade, the New York Mercantile Exchange, to the House of Morgan and J.P. Morgan & Co., which is directly across from the NYSE, at 23rd Wall Street.

In 1882 The world's first power station was launched on Pearl Street by Thomas Edison to light 7,200 lights on Wall Street. Then, on July 8, 1889 The Wall Street Journal debuted a two-cent cover price, published by Dow Jones & Company.

Its most popular feature is the "Dow-Jones Industrial Average", an index that charts the performance of stocks.

In 1903 after two years of construction, the new New York Stock Exchange building was opened at 18 Broad Street. Designed by architect George B. Post, the building features imposing Corinthian colonnades, a bust by John Quincy Adams Ward, marble trading floors and 70-foot ceilings.

The building was the first in America to be air-conditioned, with the system designed by engineer Alfred Wolff. Under the building there are hundreds of underground vaults where stock certificates are stored.

Subprime Mortgage Crisis

In September 2008, Wall Street was at the center of the worst financial crash since the "Great Depression".

Much of the result of mishandling subprime mortgages.

The crisis caused Freddie Mac and Fannie Mae to be taken over by the American government and Lehmann Brothers filed for bankruptcy.

With many other banks expected to follow, a multi-trillion-dollar federal bailout was declared. Plunging house prices followed, and across the country there were massive foreclosures, and home foreclosures.

On September 17, 2011, as part of the aftermath of the financial crisis and housing market debacle, the Occupy Wall Street protest movement descended on Zuccotti Park.

Protesters set up the camp to draw attention to economic inequality and call for prosecution of the banks behind the financial crisis.

It is considered a leaderless movement, operating on the principle of anarchy.

After being forced out of Zuccotti Park on November 15, 2011, the Occupy movement shifted its focus to another location, organizing a long-running activist group that resurfaced during the 2016 presidential election.

Wall Street and Main Street

According to Investopedia, Wall Street is often compared to Main Street, a term used metaphorically for individual investors, employees, small businesses, and the economy as a whole.

The title comes from the common name for a city's main street where most local businesses are located.

The existence of Wall Street and Main Street is identical to the cons between the two. There is often a perceived conflict between Wall Street and Main Street's goals, desires, and motivations. Wall Street tends to represent large businesses and financial institutions, while Main Street represents large shops and small companies.