New York United States

History

Since its inception on May 26, 1896, the composition of the DJIA has undergone 57 changes as of August 31, 2023. Investors can participate in the DJIA through index funds, options contracts, and futures contracts. As of 2023, the NYSE boasts a comprehensive listing of 3,741 domestic and international companies.

The roots of organized securities trading in New York date back to the Buttonwood Agreement, the earliest recorded effort among brokers directly engaging with each other. Prior to this, auctioneers facilitated securities exchanges alongside more commonplace auctions of commodities like wheat and tobacco. On May 17, 1792, twenty-four brokers signed the Buttonwood Agreement, establishing a commission rate and pledging preference to fellow signatories in securities sales. In 1817, the New York stockbrokers operating under this agreement implemented reforms and underwent reorganization.

Following its reorganization as the New York Stock and Exchange Board, the group of brokers transitioned to renting dedicated space for securities trading. This marked a shift from the previous venue at the Tontine Coffee House. Various locations were utilized between 1817 and 1865, when the current location was established. Membership had to be capped by 1869, and occasional increases have occurred since. The latter part of the nineteenth century witnessed significant expansion in securities trading.

The Dow 30, commonly referred to as the Dow, is a stock market index created by Charles Dow, co-founder of Dow Jones & Company. First calculated on May 26, 1896, and currently owned by S&P Dow Jones Indices (majority owned by McGraw-Hill Financial), it is the most prominent among the Dow Averages. The Dow Averages, named after Dow and statistician Edward Jones, showcase the trading performance of 30 large publicly owned U.S. companies during a standard stock market session.

In the late 19th and early 20th centuries, securities trading was susceptible to panics and crashes. Recognizing the need for government regulation, significant changes were implemented in the 1930s following a major stock market crash that led to an economic depression. The Stock Exchange Luncheon Club, located on the seventh floor from 1898 until its closure in 2006, was a notable part of this historical period.

History

The Nasdaq Stock Market, situated in New York City, is the second-largest stock exchange globally in terms of market capitalization, trailing the New York Stock Exchange. Owned by Nasdaq, Inc., it also controls the Nasdaq Nordic stock market network and various U.S.-based stock and options exchanges.

Originally, “Nasdaq” stood for the National Association of Securities Dealers Automated Quotations. Established in 1971 by the National Association of Securities Dealers (now FINRA), Nasdaq commenced operations on February 8, 1971, as the world’s first electronic stock market. Initially a “quotation system,” it later evolved to facilitate electronic trades. Over time, Nasdaq assumed a significant portion of major trades previously conducted through the over-the-counter (OTC) system. Despite this, some securities continue to be traded using the OTC method. As of 1987, media reports commonly referred to the Nasdaq exchange as “OTC.”

In 1981, Nasdaq accounted for 37% of the total U.S. securities market, trading 21 billion shares. By 1991, its market share had increased to 46%. In 1992, Nasdaq Stock Market and the London Stock Exchange established the first intercontinental linkage of capital markets. In 1998, Nasdaq became the first U.S. stock market to trade online, adopting the slogan “the stock market for the next hundred years.” Notably, during the dot-com bubble, Nasdaq attracted numerous companies.

In a series of sales in 2000 and 2001, FINRA divested its stake in Nasdaq. On July 2, 2002, Nasdaq Inc. transitioned into a public company through an initial public offering. In 2006, Nasdaq Stock Market’s designation changed from a stock market to a licensed national securities exchange. In 2007, it merged with OMX, a prominent exchange operator in the Nordic countries, broadening its global presence and rebranded as the NASDAQ OMX Group.

On June 18, 2012, Nasdaq OMX joined the United Nations Sustainable Stock Exchanges Initiative during the United Nations Conference on Sustainable Development (Rio+20). In October 2018, the SEC determined that the New York Stock Exchange and Nasdaq hadn’t adequately justified ongoing price hikes for selling market data. In December 2020, NASDAQ revealed plans to remove four Chinese companies from its indexes in compliance with Executive Order 13959.