There Exists More Than One Market

The exchange, the most primitive way of commerce, is defined as the exchange of some goods or services for other goods or services, that is, without any money what so ever.

The primitive societies would apply the exchange to obtain the necessary products and services needed for them to survive. When commerce extended, the use of money became the rule, and later on the figure of the anonymous society appeared.

Due to the unlimited life enjoyed by the anonymous society (only a legal action can make her disappear), it represented an improvement over all the other modalities of mercantile societies.

There is, also, another important aspect: the anonymous societies limit the responsibility of their members (shareholders) to the assets contributed by them to the society.

It All Began In Wall Street
The securities are traded in several ways and in different places Wall Street is where all began, but in the present the financial market of the nation looks less as it did as its origins.

According to the historians, before the war of secession, the most important merchants of the city of New York used to gather daily under a banana tree that was situated in what today is the union of the streets wall and broad. They traded in products such as furs, tobacco and currency, giving at the same time some services such as, for example, securing the cargo of the ships.

When the companies got organized to do different kind of commercial activities, among which, that related to making, to the commerce by retail or to the transportation by sea, an informal market of participations of these companies was developed between the merchants that owned them. Twenty four of these pioneer merchants, or stock exchange agents, as they were later called, subscribed a contract in may 16 of 1792 in order to negotiate only among them and to maintain the commissions accorded beforehand. This agreement was which began what is now the New York stock exchange market.

The 24 stock exchange agents agreed that to gather a banana tree has its inconveniences and decided to find shelter inside a coffee shop.

This was of common custom in those days, due that each coffee shop was specialized in a different type of customers.

The merchants began to celebrate their meetings in a coffee shop that had several floors, and in each floor a different product was traded. When this coffee shop became too small for them, they rented several sites on Wall Street. At the middle of the XIX Century, they established themselves on the union of Wall Street and Broad Street where since 1903 (year of the inauguration) rises the actual building of the New York stock exchange.