Running Head: NEW YORK STOCK EXCHANGE

New York Stock Exchange Jordan Gillman Molloy College

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When someone first thinks of New York and what makes New York City one of the wealthiest cities in the world Wall Street typically pops into mind. However, many dont realize the benefit and impact the New York Stock Exchange had on the wealth and power of the city and on Wall St itself. According to Sobel (1975), The New York Stock Exchange has long occupied a special niche in both the hagiology and demonology of capitalism. Among other things, it is the centerpiece for that great symbol Wall Street, a major tourist attraction (p.3). Before 1972 there was no New York Stock Exchange, which meant that there was no exchange in place for buyers and sellers to come together and conduct trades. Instead these Wall Street pioneers would be outside conducting transactions with one another on the street. According to, the Britannica Concise Encyclopedia (2012), The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City (par. 1). Therefore, as you can see there was no exchange set up before this time. This is important to realize because the creation of an exchange would also mean a creation of jobs and a new source of wealth to the city. When there is a new shift in jobs being created as well as a shift in the dynamics of the marketplace to create New York City as the epicenter and it creates wealth for the entire city because of the increase in consumer spending. As these jobs are created there is more money to be spent in the local community which boosts the overall economy of New York. The innovation that these 24 stockbrokers had in 1792 is incredible, because it now allowed for one space where buyers and sellers could interact and conduct transactions daily. By 1817, after the American Revolution congress issued $80 million in bonds to pay for the debt from the war. In order to facilitate transactions of these bonds it is necessary for a centralized marketplace to be established. At this point the NYSE became prevalent. According to the NYSE:

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The buttonwood agreement, as it is known, is so named because the tree served as the regular meeting place for these pioneers of Wall Street. The signers of the Buttonwood Agreement drafted their first constitution on March 8th, 1817. (par.1) What this meant was that there were rules established for how the buying and selling would take place on this exchange. This is very important to understand because it created a framework for the brokers to work within. By 1863, the exchange was named the New York Stock Exchange, which today is one of the best known financial industry brands in the world. As the exchange remained, trading volume increased dramatically. As time progressed and the NYSE grew even larger by the 1900s it was necessary for a building to encompass all that this exchange provided to the city. Therefore, According to Wright (2008), The Stock Exchange building is a temple, dating from the period 1903 when Classicist architecture was de rigueur for all important public buildings (p. 69). There was a competition to determine which architect would design the new building. Wright states, George B. Post designed the original building: the 22-story additional (1923) is by Trowbridge & Livingston (p.69). According to the NYSE, The exchange building is considered one of Posts masterpieces and is a national landmark (par. 5). Additionally, John Quincy Adams Ward, a prolific and well known American sculptor, designed the pediment. Entitled integrity Protecting the Works of Man, (par. 8). This sculptor depicted integrity in the center, industry and innovation on her right, and all of these depictions represented the sources of American prosperity. Additionally, the architecture of the entire building is outstanding. According to the NYSE, When it opened, the trading floor was one of the grandest spaces in the nation. It

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measures 109 by 140 feet and its marble walls rise 72 feet to meet the ornate gilt ceiling (par. 12). The building was one of the first to have Air conditioning throughout the entire building. Also, the building had boards to display prices and the wiring stretched over 24 miles. When someone would enter this building the impact the architecture has on an individual is amazing, and representative of the power that this landmark holds to it. A marketplace in any sense is where buyers go to meet with sellers to make a deal on a given product. Basically, that is all an exchange does, it allows a centralized location for buyers and sellers to come together to make an exchange of goods for capital or other goods. The idea behind this has been around for centuries going back to the concepts of bartering with one another in order to survive. This new marketplace (NYSE) allowed so much volume of transactions to take place that there was inevitably a trickledown effect to the overall wealth of New Yorks economy. According to the Britannica Concise Encyclopedia The exchange provided capital for the industrialization of the U.S in the 19th century (par. 1). Therefore, not only was there a trickledown effect to New Yorks economy but this exchange impacted the entire nation. When you think of how one agreement could impact an entire nation it is hard to not think of this site as a landmark. According to Davies, Bannock, Uncles, and Trot (2003), The leading New York Stock Exchange and largest in the world in terms of market capitalization it is the oldest exchange in the US dating from 1792, and is also referred to as the big board (Par. 1). With all of these characteristics and impacts to the New York, American, and even Global economies, the New York Stock Exchange can arguably be one of the most impactful landmarks that New York has to offer. The establishment of the financial system of America can be seen as starting on Wall Street and beginning with the NYSE. Thus, all New Yorkers need to realize the

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impact that this idea which was started by a group of stockbrokers in the 1700s had on the impact and creation of the U.S. and global economies today.

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References Davies, Bannock, Uncles, and Trot. New York Stock Exchange (2003). In The new Penguin Business Dictionary. New York Stock Exchange (NYSE) (2012). In Britannica Concise Encyclopedia.

Who We Are | NYSE Euronext. (n.d.). Home | NYSE Euronext. Retrieved September 18, 2013, from http://www.nyx.com/who-we-are

Wright, C. V. (2008). New York (4th ed.). Taunton, Somerset: Somerset Books Sobel, R. (1975). NYSE. New York: Weybright and Talley.