The stock market is a location where businesses and individuals buy and sell shares of companies and benefit from the returns. As a shareholder, a person enjoys some amount of say over what happens in a company. This investor offers needed financial support to the company and in return benefits from the profits. The number of shareholders owning a company could range from just a few people to thousands- depending on the size and the financial requirements of the corporation. As a business grows, it requires adequate funds to reach its financial goals. When a company is in substantial growth period, it sells shares to the public to gain a stronghold in the market. Offering shares to the public has been a practice with many businesses since the early times.

Companies selling shares of their business to the public is not something new. The financial market has always been a vehicle for buyers and sellers, where both parties share a mutually profitable relationship. The stock exchange is like the financial spine of a country- a place where shares of numerous companies are bought and sold. In the US there are three stock exchange markets that play an important role in shaping the economy- the Nasdaq, the New York Stock Exchange and the American Stock Exchange.

Wall Street is a well known and important financial center in the United States. Here’s how it got its name. During the 17th century, before New York City was what it is today, there was a high wall built to defend against British attackers. Eventually that wall was torn down but the name of the street remained as Wall Street.

Even though we think of Wall Street as the financial hub of the United States, history has a different story to tell. You may not know that Boston was once the countrys financial hub. Boston dealers played an active part in buying and selling various kinds of commodities as well as dealing in bonds for contracts such as bridges and canals. It is indeed difficult to imagine the financial hub of America as something other than Wall Street. However history clearly states the importance of the Boston dealers in creating an active financial market, very much similar to the one found in Wall Street today.

Other countries similarly conducted their financial dealings through their own financial marketplaces. For example, the city of Paris carried out its economic pursuits on Rue de Quincampoix.

The story of the London market is another interesting tale in the history of finance. The stock exchange in London was initially an open market based on Exchange Alley. Jonathans Coffee House was a popular financial center where many London dealers conducted their financial activities. This Coffee House was later renamed The Stock Exchange.

Wall Street gradually picked up business through the years with varied kinds of dealers offering countless shares to the public. With time many new banks also began to operate in the market offering attractive deals such as treasury bonds.

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