Market Overview

This Day In Market History: The NYSE Is Born Under A Buttonwood

Share:
This Day In Market History: The NYSE Is Born Under A Buttonwood
Related SPY
This Day In Market History: Robert Brennan Fined For Securities Fraud
The Market In 5 Minutes: Walgreens To Replace GE In The Dow Jones Industrial Average
Corporations Don't Invest Enough (Seeking Alpha)
Related DIA
Why GE's Removal From The Dow Could Help Investors
The Original Dow Jones Industrial Average: Where Are They Now?
Corporations Don't Invest Enough (Seeking Alpha)

Each day, Benzinga takes a look back at a notable market-related moment that happened on this date.

What Happened

On May 17, 1792, the signing of the Buttonwood Agreement laid the groundwork for the New York Stock Exchange.

Where Was The Market

The Dow and S&P 500 weren’t introduced for another 104 and 131 years, respectively.

What Else Was Going On In The World

The U.S. had recently created the postal service and passed the Presidential Succession Act. Across the Atlantic, the French Revolution raged.

Buttonwood Agreement Bears NYSE

Under the shade of a Wall Street buttonwood, 24 stockbrokers and merchants signed an agreement establishing a centralized securities exchange, obviating the roles of auctioneers and setting a commission rate.

Just five securities traded at the time, with the Bank of New York the first to debut.

Nearly 25 years later, the organization became the New York Stock & Exchange Board. After a series of mergers and acquisitions, the exchange is now operated by Intercontinental Exchange.

Related Links:

This Day In Market History: The First Modern Leveraged Buyout

This Day In Market History: CBOE Becomes First Dedicated Options Exchange

Posted-In: New York Stock Exchange NYSE this day in market historyEducation Top Stories Markets General Best of Benzinga

 

Related Articles (DIA + SPY)

View Comments and Join the Discussion!