The inventory mart refers to the collective buying of selling of securities on exchanges. These exchanges are too called inventory markets. The largest markets in the U.S. historically own been the Dissimilar York Inventory Convert, the American Inventory Interchange and the Nasdaq replace.
New York Stock Exchange
Until approximately 1920, most inventory trading took lay elsewhere. Dissimilar York Inventory Alternate traders met on Wall Street and traded in an unbolted "street bazaar." In 1921, the traders moved indoors. NYSE was established as a highly regarded transform through it brokered onliest the moderate of blimp, established companies. In 2007, NYSE merged with Euronext, creating a global interchange bundle.
American Stock Exchange
The American Inventory Modify started as the Fresh York Curb Alter. In the 1950s, AMEX grew quickly by attracting fresh, entrepreneurial companies, doubling the worth of listed shares from $12 billion to $23 billion by 1960. In 2008, AMEX joined NYSE Euronext.
Nasdaq
The Nasdaq convert started in 1971. At the date, it was the elementary electronic interchange in the microcosm and eventually became accepted for smaller companies and remarkably technologically driven firms.
Globalization
Globalization, or increasing interconnectedness of markets, has had a tremendous influence, especially in the past 20 to 30 years. As technology advances, the world becomes smaller in the sense that goods and services can be exchanged over great distances quickly and with fewer costs.This was caused mostly by the overuse of margin accounts in which everyday investors bought shares at a 10-to-1 ratio. The resulting losses, including bank failures, created massive unemployment and lowered productive capacities for more than a decade.
Gains and Losses
The stock market has gone through many ups and downs, as represented by the chart provided, but the overall trend is positive, reflecting greater productivity and growth in the overall economy.
In 1998, Nasdaq joined with AMEX, though they continued to function as separate exchanges.
Great Depression
The worst crisis in the history of the stock market was the Great Crash of Oct. 28-29,1929, that essentially started the Great Depression.This allows investors more opportunities to diversify internationally. For instance, it is common for the Japanese to buy U.S. Treasury bonds and for U.S. investors to purchase shares in Asian companies.
Financial Crisis
The 2008 financial crisis precipitated from a bursting of the real estate market in the U.S., causing a global economic downturn. Many stock exchanges worldwide showed historically significant declines. The S&P 500 index in the U.S. lost more than half of its value between December 2007 and March 2009.
