Stock Market History- How The Stock Market Has Grown Over Time
The stock market has a long history, traced back to the United States, over 100 years ago. The government that was in place then, thought of funding the war that was going on through selling of bonds and government promissory notes. The trend was adopted by banks as well by starting to offer shares and stocks to raise money for the institutions. As they did so, the market began to grow and expand and the rich people felt it was a good way to continue growing their riches. In the 1790s, some merchants came together and created a market they called New York Stock Exchange. This is where they capitalized in trading with stock and bonds. Towards the mid 1800s, companies realized that this was a great way to look for capital and expand their financial base. The base of investors also grew and they were interested in buying stocks and becoming partial owners in the companies. By the year 1900, millions of dollars had been traded in the stock market. Everything was not as smooth for the stock market because, during the industrial revolution period, the market experienced a crash. The crash was as a result of corporate corruption among many other factors. Many companies thought that, the best way to increase their returns within a short period of time was to fail to account properly for their debts and engage in fraud activities that did not put into consideration, all their transactions. The balance sheet information is now more detailed and it accounts for finer details of the transaction. Companies are now able to determine whether they are producing positive cash-flow as far as stock are concerned.
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