History of the NYSE pt. 1

One important part of American history is all too often overlooked is the financial history. The backbone of our country of course is the principles of liberty, but the muscle of our prosperity is our financial markets. How can something as pivotal as the history of the largest stock exchange in the world be so simply passed over.
In 1792, 24 stockbrokers came together and signed the Buttonwood Agreement, and the financial market was born. At the time there were only 5 securities traded; three were government bonds and two were bank stocks. After the War of 1812, the securities traded begin to grow. It is surprising to know that stocks were two trading sessions a day where each security was read out and the brokers would trade; this was called call market procedures. In 1817, the brokers created the New York Stock & Exchange Board and adopted a constitution with rules of conduct; also, the exchange rented a space at 40 Wall St. With the invention of the telegraph in 1844, participation of brokers outside of New York became more available. In 1853, standards for being a listed security were tightened requiring companies to provide statements of capital resources and shares outstanding. In 1863, the exchange adopted a new name that is still used today, NYSE. The exchange moved to its permanent home at 10-12 Broad St, making Wall and Broad St. the center of securities trading in the USA. 1867 gives us the first stock ticker allowing stock prices to be viewed by investors anywhere. The NYSE requires all shares to be registered with a bank in 1969; often time’s companies were giving out secret shares called watering. In 1871, continuous trading is adopted allowing brokers dealing in one stock to remain at one place on the floor; this gave way to the specialist. 1886 has the first day where 1,000,000 shares are traded. In 1892, a clearinghouse is adopted to expedite transfer of stocks between brokers. In 1895, the Exchange suggests that companies send annual reports to their investor with an income statement and balance sheet. In 1896, the Dow Jones Industrial Average is published in the Wall Street Journal; its initial value was 40.74 and contained twelve stocks.