8 Cool Facts About the Stock Market

We have gathered some facts about the stock market for you because of the latest evolution of the stock market is online stock trading. Markets have gone through a lot of changes throughout their existence, but the roots of the stock market extend all the way back to the 1500s, if you think of the Belgian exchange, or even the 1300s in Venice. Here are eight interesting facts about the stock market.

1. Oldest Stock Market

Though markets in India, merchants of Venice, and people in other areas of the world could sell, buy, and trade loans and debts on the streets, the first stock exchange market actually originated in Amsterdam. In 1602, the Amsterdam Stock Exchange was created by the Dutch East India Company. Today, it’s known as the Euronext Amsterdam.

2. The Big Board

The “Big Board” is the New York Stock Exchange’s nickname. It is the biggest stock exchange in the entire world. The market opened in 1792 for the first time.

3. Ticker Tapes

Before the ability to trade stocks online or see news about them on TV, computer, or mobile, brokers could rely only on ticker tape. Ticker tapes printed out stock information that was transmitted using telegraph lines. The tape got its name because of the ticking sound that occurred while the paper printed.

4. The Curb

First started in New York in 1790, the American Stock Exchange didn’t earn its nickname, “the Curb” until the 1800s. Business was conducted in the busy New York City streets, which led to traders becoming known as “curbstone brokers.”

5. The October Effect

Coincidence or no coincidence, investors and brokers always get nervous during October because, traditionally, the worst stock market crashes have always occurred during this month. On October 29, 1929, the first, devastating crash occurred, where stocks sank 25% over the course of just a few days. First the London Stock Exchange crashed the previous month, and the market increased in volatility as people sold, frantically. The Great Depression began in the 1930s and lasted ten years. On Monday, October 19, 1987, markets across the globe started to crash and dropped by huge points; 46% in Hong Kong, 26% in the UK, and 23% in the U.S. In October 2002 and 2008, there were huge crashes as well.

6. Stock Market Movies

Because the stock market is such a good stage setting for a drama, it’s no surprise that Hollywood films often feature scenes involving the exchange. Some movies are pretty unbelievable, but there are also some true-story tales such as The Big Short, The Wolf of Wall Street, and Too Big to Fail.

7. Opening Bell

Since 1903, every day’s trading session begins on the NYSE with a bell ringing at 9:30AM EST. The signal was originally a gavel, then a gong, and now a bell. Many high-profile individuals, such as President Ronald Reagan, Usher, Darth Vader, and Robert Downey Jr., have participated in ringing the bell.

8. Blue Chips

“Blue chips” is a prestigious nickname reserved for nationally-known companies that trade high on the market. The name comes from blue being the highest-value chip in poker. Companies such as Kellogg, General Mills, Johnson & Johnson, and IBM are considered “blue chips.”

From stone tablets with loan information carved into them to electronic trades made in a matter of milliseconds, stock markets have evolved a lot. These facts about the stock market will continue to change, along with the way we all invest.