The stock exchange has become a place where people think it’s best to invest their money. It is a fascinating phenomenon, and its history is even more amazing. If you like history or want to know more about how it all came to this, dive into this read since it’s going to be surprising in many aspects. The stock market changed so many things that we aren’t even aware of. Sites like stock.us have sophisticated investment analysis tools and helpful information for you to make calculated decisions and outperform the market.
From how old the stock market is and how it works, to what historical things it brought up (unrelated to investments), you will see how eventually money does make the world go round. Let’s dive into it!
Table of Contents
1. The first Investing Book was published in 1688
img source: gwern.net
The book is called Confusion of Confusion, written by a Spanish author Joseph De La Vega, who was interested in speculation and investing.
You would be surprised by how much we can apply to the stock market logic. What we liked the most is advice that we always share with potential traders and investors, and that is, “He who wishes to become rich, must have money and PATIENCE.” So yes, nowadays, you don’t have to own millions to start investing, but patience is crucial for trading and investing.
2. The Stock Exchange didn’t start in the 19th century – it’s 400 years old!
Many people will remember The Wolf of Wall Street, or Madman, and assume that the stock market isn’t that old. It is quite the opposite; it just changes over time.
The thought itself started in 1602 when the Dutch East India Co. began making paper shares, which meant that shareholders could buy or sell them. Very simple, but effective. This eventually led to the creation of the Amsterdam Stock Exchange. It still exists under the name Euronext stock exchange. Thank the Netherlands for the idea!
3. The New York Stock Exchange had a different name.
img source: investopedia.com
There isn’t an investor that doesn’t know about the New York Stock Exchange (NYSE), but very few know that it wasn’t always called that. NYSE. The famous market was led under the name New York Stock & Exchange Board for almost seventy years, starting from 1792, when a group of traders signed the Buttonwood Agreement. On rare occasions, you might see the term Big Board, which is also the name for NYSE. Also, according to FinanceBrokerage, NYSE has the best trading hours in the world!
4. Why the “bear” and “bull” analogy?
You have certainly come across terms such as “bullish” and “bearish” while reading random stock market articles or learning about it. Where does this analogy come from, and why? To be clear, “a bear” on the stock market bets that the market will go down, and, “a bull,” thinks that the stock market will go up.
The origin of the story is partially a myth, but it makes sense. It comes from animal fights in California, back in the day; one of the significant entertainment events would include a battle between a Grizzly and a Bull. Grizzly Bear would usually be hesitant and try to defend themselves, while the Spanish Bull would attack immediately. That is how we have this story.
5. The United States makes almost half of the world stock market.
img source: stevens.edu
Maybe some of you would think that Switzerland, as a country of banks and investments, holds the majority of the stocks, but for the past two years, the U.S. stock market represents 40% of the entire world stock market. Behind them is Japan, owning around eight percent. Top five countries are the U.S., Japan, China, Hong Kong, and the United Kingdom
6. The stock market can go up to 70% on any year
The stock market is known for going up and down at any time, depending on world events, and excellent business moves. Every year, the stock market is more likely to go up than to go down. For instance, Dow Jones was up to 70% in the last 100 years. This always varies, but it remains the fact that it fluctuates. This is one of the examples of how much it can go up.
7. October is the most unstable month
img source:
As October draws nearer when you are on the floor, every broker will anticipate the so-called The October Effect. This is more of a belief than a real thing, but there is a reason for it.
The anxiety comes from two big crashes in the past, and both happened in October. The first one was in 1929, also called The Great Crash and the Crash of 1987.
However, if we look statistically, the effect is turning more into a myth every year, and these crashes are really old and happened in a completely different world than they are now. Still, you can choose if you want to believe or not, because more bear markets were ending and starting in October, BUT October remains the most volatile month due to large ups and downs in the stock market around that time. Better to be prepared than sorry.
8. September is the most depressing month for the stock market
There is no proven reason behind this, making it similar to the October Effect.
If we take a logical approach, vacations are coming to an end, people are going back to work, and some of them decide to cash their returns, which can be the cause of some downturn. Traders are also taking vacation usually in August, so they do the same thing, most of the time. This doesn’t mean everything you have will lose its value, but you should stay patient and wait for the downturn to fade slowly.
9. The most expensive share is Berkshire Hathaway
img source: cnbcfm.com
According to websta.me, Warren Buffett is still considered one of the greatest investors, and he founded Berkshire Hathaway, which were the most expensive shares in the whole stock exchange business.
There is a class A share and a class B share of Berkshire Hataway, but the latter one has no voting right, and they are cheaper if you are eager to invest in the company. A class A share is worth around 300.000 dollars. Yes, a single share!
10. People discovered how the U.S. Hydrogen Bomb was made thanks to the stock market
We know, what does this have to do with the U.S.?. Hydrogen Bomb? If you are witty like Armen Alchian was, then it would be easier to understand. But let’s break down the most exciting fact about the stock market!
It was all happening in 1950, and physicists were not allowed to reveal which fuel they are using for the bomb. Of course, many people wanted to know, and a professor of economics, Mr. Alchian, figured out it was Lithium. This was all because he noticed that during the tests, the stock price of Lithium Corp had a return 461 percent during the first year of the experiment. It was only logical that scientists were using Lithium as fuel.
Unfortunately, the government strictly forbade him from publishing this fact, so he had to wait a long time to share this with the rest of the world.
In conclusion
img source: news.com
What an unexpected way for the stock exchange and NYSE to make history! Besides what we already knew, this is interesting for everyone, regardless of hobbies, jobs, etc. These facts are part of history, and it will remain that way. Let’s see what else the stock market brings in the future.
