New York Stock Exchange – Why are everyone shouting?

Yes, the New York Stock Exchange, although it is the center of the trading universe, it looks more like an amusement park or a playground, is not it? Close your eyes and you can imagine it, the hustle and bustle, the screaming traders on the floor, the adults dressed in suits and button shirts posing like wild bag children playing soccer on the open field.

But why, in this modern era, traders and brokers still act like an angry mob? Do not we use most of our computers now? This is not the information age, an era dominated by sterile, instant messaging? How did this madness start? Why should we continue? This article will explore and explain why Wall Street and many other trading pit resembles riots after a football match, and more of a growing gathering of business professionals trying to accumulate wealth for themselves and their customers.

First, there are some trading exchanges and trading troughs, ranging from Chicago's Bond Nest to the Japanese Nikkei, but the world's most famous exchange, beyond the shadow of doubt, At the intersection of Wall Street and Broad Street in Manhattan. The New York Stock Exchange (NYSE) has been in place since 1792, the famous Buttonwood agreement, signed by 24 New York brokers and businessmen. Most people think of the Dow Jones Stock Exchange when they think of the stock market. This includes thirty of the nation's largest companies, from General Electric and McDonald's to Wal-Mart.

The principle is simple: people use stock brokers to buy shares or cash in exchange for a percentage of the company's ownership (and its profits or losses). The money is always flying fast and violently in the room, so there is action, so the total hustle. Basically, these stocks are "auctioned" to the highest bidder, who agrees to buy the price, so each broker tries to get their offer before the stock price goes up and is accepted. This is where the cries originated, brokers trying to shout their prices as loud as possible and accepting, trying to submerge and defeat the competing brokers to their desired purchase price. Getting a bid at the price of a share before a minute could mean a difference between the profits of millions of dollars in a large stock purchase, so the immediacy and power to use when so much is understandable .

Initially, the tenor of the room was more moderate, because the respected businessman and broker traded stocks at a reasonable rate , Wealth is simply moving wealthy individuals from one family to another family. Rockefeller could buy a Ford or Vanderbilt interest because knowing that these successful wealthy people would generate more wealth.

With the growth of the United States, the American Dream was born, the actions of ordinary people want. After the American Industrial Revolution took place in the late 1800s, a middle class emerged, as factory workers fought for more corporate factions and eventually earned better wages and better working conditions. Any idea that Americans can become rich and fast-getting rich takes root in a better way than through the New York Stock Exchange.

In the 1920s, many Americans invested in the stock market. The New York Stock Exchange is booming. Instant millionaires emerge in all places. There is a whole new level of rich Americans in their living rooms where the automatic pay-tape machine gives them instant market price updates. This is when screaming and intense start serious, because brokers are overwhelmed by buyers, new customers and purchase orders. They screamed, shook hands, waved their hands, first got their orders. The position of the State is positive. This era is known as Roaring Twenty Years, and its theme song is Blue Sky, because everything is roses for most Americans. Consumer credit was born to sell over-manufactured products through a large stock investment. The only problem is that this entire wealth explosion is built on a card house almost like a Ponzi scheme. Stocks are sold to unprofitable start-ups, who simply fill their inventories with investment cash, and too many people are completely leveraged in the stock market. 9 years, from 1920 to 1929, stock prices rose straight, did not end.

This was until October 24, 1929, better known as Black Thursday. This is the day of the big stock market crash, marking the beginning of the Great Depression, which is the biggest economic disaster the United States has ever faced. With the broker screaming "sell, sell, sell", trying to reduce losses, but it was too late, but no buyers. Investors fled in large numbers, most of them bankrupt, bankrupt and without money.

Nevertheless, the New York Stock Exchange still insists, as with any exchange or market, since then, it's upheaval. Over the years, the New York Stock Exchange has been a number of peaks and valleys. The most recent collapse occurred after the 2008 real estate bubble burst. The market is still recovering. A number of regulations have been enacted to make the transaction fairer and more acceptable. Day traders traded from their home computer signals to buy and sell in an instant. In fact, most deals are done through computers these days.

So why does an adult man still shout in a suit and scream and throw like a five-year-old man with a grumpy temper? This is a thing that will never change.

Because at its core, the New York Stock Exchange is still the auction house system, every single DOW transaction takes place at the end of that famous floor. Even if you are shopping on E * Trade, the transaction is accepted and completed on the floor of the New York Stock Exchange, with the assistance of a broker. Screaming is unnecessary, and unlike the past, due to technological advances in computers and communication systems, but still on the floor the brokers who have to overcome their competitive clashes are popular. In fact, hand signals are now more important for stock brokers, so they can quickly instruct floor specialists to place actual buy or sell orders.