The stock market is one of the most important factors of the free economy. It is also a level playing field that allows all kinds of investors to make profits. However, for many people, the stock market’s world may seem too complicated or too dull. Here are some interesting facts to enrich your knowledge regarding the world of stock exchanges and how they operate. The more you learn about the stock markets the more you will be impressed by the way it works, its history as well as some amazing statistics.
The first stock exchange emerged in Amsterdam in 1602
Before 1602 there was no official stock exchange even though big trading economics such as India, Venice traded in debts and loans. In 1602 the first stock exchange emerged in a small town of Amsterdam. This historic event in the world economy happened due to creating the first multinational corporation that issued stocks, the Dutch East India Company.
From 1900 to 2009 Australian stock market was the best performing in the world
During the twenty century, Australia had the highest inflation returns of 7.5 per cent every year. For comparison, the US stocks made 6.2% returns in the same period. Australia was second positioned when it comes to lowest market volatility. Along with the rise of China’s economy, the Australian stock market’s great performance is even more pronounced since Australia is one of the largest China’s trading partners.
The first women started working in the NY stock exchange during WWII
When the stock exchange was short of men workers in 1943, it enabled women to work on the stock exchange for the first time in the stock markets’ history. But that was just temporarily, till 19947 when women were banned again from working on the stock exchange. In 1965, Muriel Mickie Siebert bought a seat on the NY stock exchange. In that way, she became the first lady of Wall Street and the only woman working at the New York Stock Exchange for a whole decade.
Until the year 2000 stock prices were expressed as fractions
Market prices were not always quoted in decimals. In fact, until April 2001 the prices were expressed by fractions. Fractions became too cumbersome and outdated. The Securities and Exchange Commission recommended all stock exchanges in the US to convert the fraction system into a decimal system. Decimal quotes made the stock market more understandable to ordinary people and investors. It also positively impacted the markets from an organizational perspective.
Berkshire Hathaway represents the most expensive stock in the world
Warren Buffet is known as the most successful investors of all time thanks to its conglomerate Berkshire Hathaway. It includes companies such as Duracell, Queen and Geico and stock invested in Coca Cola company and American Express. Berkshire stocks reach $305,085 per share because the company never devalued its stocks’ price, meaning it never performed a stock split.
Every day since the year 1903 at the NY Stock exchange begins with the ringing bell
Every day at 9.30, the New York stock exchange opens with the ringing bell, which is the tradition that originated from the year 1903. Until 1903 it was the Chinese gong that opened the trading hours at the NYSE. The opening of a trading day at NYSE became an iconic event and even a ceremony. It is a particular honour for many stars and leaders of the biggest corporations to participate in this kind of ceremony to increase their visibility in the era of the internet.
Stock market returns are the highest in the third year of the US presidential term
According to statistics and historical data, the returns are the highest at the midterm of the US presidency term. It’s popular as the presidential cycle theory. Figures show us that during the first year of presidency stock returns go up to 5.2%, during the second term 4.8%, reaching approx 12.8% during the third year. During the last presidential year, the stock returns are not higher than 5.7%. The factor of uncertainty explains this tendency that is present until the midterm elections.
