Yes, the New York Stock Exchange is the hub of the trading universe, and it looks a bit like an amusement park or a playground, right? With your eyes closed, you can greet it like a herd of wild boys playing tackle football outdoors in a hurry, in a hurry, screaming vendors, suits and button-up shirts.
But why do traders and brokers in this modern age still act like an angry mob? Aren’t we using computers for a lot of trades these days anyway? Isn’t this the age of information, barren, dominated by instant communication? How did this madness start? Why does it still exist? This article examines and illustrates that Wall Street and many other shopping malls look more like a riot after a football match than a collection of grown business leaders trying to amass wealth for themselves and their customers.
First of all, there are a number of exchanges and markets from the bond pits in Chicago to the Nikkei far from Japan, but without a doubt the most famous trade exchange in the world is the junction of Wall Street and Broad Street in Manhattan. The New York Stock Exchange (NYSE) has existed since 1792, when 24 New York brokers and traders signed the famous Buttonwood Treaty. Many people think of the Dow-Jones exchange when they think of the stock market. It features the 30 largest businesses in the United States, from GE and McDonald’s to Walmart.
The principle is simple; People use stockbrokers to buy shares, or the percentage of a company’s ownership (and its profits or losses) in cash. Money has always flown around the room fast and furiously, and so has Kriya, so a complete hubbub. Essentially these shares are “auctioned” to the highest bidder who agrees on the purchase price, so each broker tries to get his bid and try to accept it before the stock price goes up. This is where the screaming started as brokers tried to shout their price and acceptance as loud as possible. Bidding one second before a penny per stock can mean the difference between a million dollar profit on one large stock purchase, so you can understand the urgency and power used when most things are on the line.
Respectable businessmen and brokers traded shares at a fair pace, and as the wealth shifted from wealthy people, from one family to another, at first, room rent was more noble. A Rockefeller who knows that these successful rich people make more money can buy a piece of Ford or Vanderbilt for their needs.
However, as America grew and the American dream was born, ordinary people wanted to get involved in action. After the American Industrial Revolution in the late 1800s, a middle class emerged, and factory workers fought for more of the company pie and eventually won better wages and conditions of service. It was rooted in the idea that any American could get rich and get rich quick, and what better way to go through the New York Stock Exchange.
By the 1920s, many Americans were investing in the stock market. The New York Stock Exchange grew rapidly. Instant millionaires were emerging everywhere. A new level of wealthy Americans with tick tape machines in their living rooms gives them instant market price updates. Shoutouts and gestures began to intensify as brokers were overwhelmed by buyers, new customers and buy orders. They shouted, shouted, and waved their hands to get their orders first. The position of the country was positive. That era was known as the Roaring Twenties, and its theme song was Blue Sky, because to most Americans, everything was pink. Consumer credit was born to help sell products manufactured thanks to massive stock investments. The only problem was that this whole explosion of wealth was built on a card house like a Ponzi scheme. Shares were sold to non-profit start-ups, they were filling their coffers with investment money, and many people were directly stimulated in the stock market. For nine years, from 1920 to 1929, stock prices rose steadily.
That is, until October 24, 1929, known as Black Thursday. It was the day of the Great Stock Exchange crash, which marked the beginning of the Great Depression, the biggest economic disaster the United States has ever faced. Brokers shouted “sell, sell, sell” and tried to cut the loss before it was too late but buyers were not there. Investors fled in large numbers, and many of them went bankrupt, broken and penniless.
Even so, the New York Stock Exchange made a relentless effort, and like any exchange or market, it has had turbulent highs and lows ever since. Over the years the New York Stock Exchange has had a number of peaks and valleys. The most recent collapse occurred in 2008 after the housing bubble burst. The market is still recovering. Many regulations have been formulated to make trade fair and more acceptable. Day vendors trade their home computer signals instantly. In fact, most transactions these days are done through computers.
So why do older men, who are still dressed, scream, scream, and gesture as if they were a five-year-old boy? It is the only thing that seems to never change.
Because at its heart, the New York Stock Exchange is still an auction system, and every DOW trade ultimately takes place on that public deck. Even if you make a purchase on E * Trade, that trade is accepted and ends on the floor of the New York Stock Exchange, which is facilitated by a broker. With the advancement of computer and communication systems, shouting is not necessary, not as prevalent as in the past, but brokers are still on the ground to win their competition to attack. Of course, hand signals are now more important than stock brokers, so they can quickly signal to real estate experts who will give you the actual buy or sell order. That means everyone who goes crazy ..
“Orders come through brokerage firms that are members of the exchange and flow to brokers on the floor going to a specific location on the stock exchange floor. There is a specific person in this place called the market. His job is to match buyers and sellers.”
By using wild clear gestures and shouting when needed, the order can be heard that brokers are communicating with their own partners, not so much with the auctioneer these days. The noise and rage intensifies over time, and the old catastrophe raises its ugly head and to an outsider it looks like a rugby crumble. In fact, it simply means that a large number of trades take place right in front of your eyes and damaging your ears.
The day will come when everything in the New York Stock Exchange will be quiet, but it certainly will not be fun. However, there will always be human traffickers on the ground making sure their deal is done, which will always mean shouts and signatures. So now you know, the next time you see a crazy video clip from the New York Stock Exchange, brokers are not used to being professional wrestlers or politicians. They do not learn how to steer a plane down the runway or imitate their favorite NFL head coach during an intimate football game. They are just trying to make money or save money for their customers. Even if you only have a 401K or retirement fund, if you become one of those clients and your money is at stake, you will think these deals are worth shouting about.