The NYSE has a long and fascinating history.

By Michael Munkasey ©   The New York Stock Exchange traces its origins back more than 200 years, to the signing of the Buttonwood Agreement by 24 New York City stockbrokers and merchants in 1792. Centuries of growth and innovation later, the NYSE remains the world's foremost securities marketplace. Over the years, its commitment to issuers and investors has been unwavering, and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. This section of nyse.com offers an historical perspective on how the NYSE grew to become the global marketplace of today. The Exchange is proud of its long and rich history, and invites you to explore these pages to learn more about its achievements, major milestones, and record-setting events. First organized: May 17, 1792 -- Twenty-four stock brokers signed an agreement to trade with one another beneath a Buttonwood Tree outside 68 Wall Street. First constitution: March 8, 1817 -- A constitution with rules for the conduct of business was adopted. The organization was named the New York Stock & Exchange Board. The name was shortened to New York Stock Exchange in 1863. First incorporated: February 18, 1971 as the New York Stock Exchange, Inc., a not-for-profit corporation. ** -- ** -- ** -- ** -- ** -- ** -- ** -- ** -- ** Timeline 1653 Stockade Erected in Manhattan A 12-foot-high wood stockade is erected across lower Manhattan from river to river to protect Dutch settlers from attacks by the British and Indians. 1685 Wall Street Laid Out Surveyors lay out Wall Street along the line of the stockade. 1790 US Investment Markets Born The federal government refinances all federal and state Revolutionary War debt, issuing $80 million in bonds. These become the first major issues of publicly traded securities, marking the birth of the U.S. investment markets. 1792 Buttonwood Agreement Twenty-four prominent brokers and merchants gather on Wall Street to sign the Buttonwood Agreement, agreeing to trade securities on a common commission basis. The New York Stock Exchange traces its beginnings to this historic pact. Bank of New York is the first corporate stock traded under the Buttonwood tree. It is the first listed company on the NYSE. 1792 Five Securities Traded There are five securities traded in New York City. Three are government bonds and two are bank stocks. 1817 NY Brokers Form NYS & EB The New York brokers establish a formal organization, the New York Stock & Exchange Board (NYS&EB) and rent rooms at 40 Wall Street. They adopt a constitution with rules for the conduct of business. 1817 Rules and a Constitution A constitution with rules for the conduct of business is adopted. 1815 Securities Market Grows In the aftermath of the War of 1812, the market for securities in New York begins to grow. Along with government bonds, bank and insurance stocks now trade. 1853 Complete Statements Required The NYS&EB strengthens its listing standards, requiring companies to provide complete statements of shares outstanding and capital resources. 1857 Panic of 1857 Collapse of the Ohio Life Insurance & Trust Company precipitates the Panic of 1857. Prices drop eight to ten percent in the course of a single trading session, the culmination of a 45% decline in market value since the beginning of the year. 1863 Name Change In a name change, the New York Stock & Exchange Board becomes the New York Stock Exchange (NYSE). 1867 The First Stock Ticker The first practical stock ticker is invented by Edward A. Calahan. The stock ticker revolutionizes the stock market by bringing current prices to investors everywhere. 1868 Property Rights Membership in the NYSE becomes a "property right," enabling members to sell their seats. 1869 "Watered Stock" To eliminate "watered stock" (shares issued by a company without authorization), the Exchange requires that all shares of listed companies be registered at a bank or other appropriate agency. Only Erie Railroad refuses to comply. Its shares are delisted from trading for several months until it complies. 1869 All Shares Must Be Registered The Exchange requires that all shares of listed companies be registered at a bank or other appropriate agency. 1871 Continous Trading In a major advance to foster more liquid markets, the Exchange adopts a system of continuous trading to replace calls of stocks at set times. As part of the new system, brokers dealing in a particular stock remain at one location on the trading floor, giving rise to the specialist. 1873 NYSE Closes for 10 Days Jay Cooke & Company, a prestigious Philadelphia banking firm, fails on September 19 due to over speculation in railroad stocks. The NYSE closes for ten days as a severe financial panic grips the nation. 1878 First Telephone on the Floor The first telephone is installed on the NYSE floor, just two years after Alexander Graham Bell conducts successful tests in Boston. 1887 Change of Trading Hours Trading hours change to 10 A.M. until 3 P.M. On Saturdays trading is from 10 A.M. to noon. 1889 New York Quotation Company The New York Quotation Company, a NYSE subsidiary, is organized to provide ticker service to subscribers. 1895 Annual Reports Suggested The Exchange recommends that all listed companies send their shareholders annual reports with an income statement and balance sheet. 1896 DJIA Published By Wall Street Journal The Dow Jones Industrial Average is published by the Wall Street Journal for the first time, with an initial value of 40.74. Among the twelve stocks that comprised the list are American Cotton Oil and Standard Rope and Twine. 1903 Move To Current Site On April 22, the NYSE moves into its new quarters at 18 Broad Street. The new trading floor, still in use today, is 60 percent larger than the previous floor. 1907 Panic of 1907 Rumors of financial problems at Knickerbocker Trust, a leading NY bank, triggers a run on banks throughout the city. This begins the Panic of 1907, regarded as America's most severe financial crisis to date. The panic is stemmed almost single handedly by J.P. Morgan, Sr., who orchestrates a massive operation to infuse cash into banks and shore up the stock market. 1914 Longest Exchange Shutdown WW1 As armed conflict engulfs Europe, securities exchanges around the world suspend operations to arrest plunging prices. The NYSE closes its doors on July 31, and does not fully reopen for 4 1/2 months, the longest shutdown in Exchange history. 1920 Centralized System The Stock Clearing Corp. is established by the Exchange to develop a centralized system for delivering and clearing securities among members, banks and trust companies. 1929 Central Quote System To meet volume growth, the Exchange builds large new trading posts and establishes a central quote system that provides instantaneous bid-ask prices by phone. 1929 Black Tuesday On September 3, the Dow Jones Industrial Average reaches its 1929 peak of 381.17. On October 29, "Black Tuesday," prices fall sharply and the stock market "crashes." This "crash" produces a record volume of nearly 16 million shares. The Dow Jones Industrial Average falls more than 11 percent. 1929 Black Thursday Stock prices fall sharply on October 24, Black Thursday, with record volume of nearly 13 million shares. Five days later, the market crashes on volume of over 16 million shares -- a level not to be surpassed for 39 years. In popular imagery, the crash has come to mark the beginning of the Great Depression. 1930 "Black Box" Ticker The 500-character per minute black box ticker, nearly twice as fast as previous tickers, is introduced. 1941 Centralization of Authority Continuing the reorganization begun in 1938, the NYSE constitution is revised to centralize administrative authority in the office of the president and his staff. 1942 Lowest Price for Membership A membership sells for $17,000, the lowest price in the twentieth century. 1953 Last Daily Volume Under 1 Million Volume of 900,000 shares on October 10 marks the last daily volume under 1 million shares. 1953 First Member Corp. The NYSE permits member firms to incorporate, improving their access to permanent capital. Woodcock, Hess & Co. becomes the first member corporation. 1954 Dow Surpasses Peak The Dow Jones Industrial Average surpasses its 1929 peak for the first time. 1961 International Federation of Stock Exchanges International Federation of Stock Exchanges is organized. 1966 Common Stock Index The NYSE begins a composite index of all listed common stocks. This is referred to as the Common Stock Index and is transmitted daily. The starting point of the index is 50. 1968 Paperwork Crisis As trading volume surges, member firms struggle to process transactions on time. Member firm back offices work around the clock to keep up. The "paperwork crisis" continues for months, spurring increased automation. 1970 Securities Investor Protection Corp. Congress creates the Securities Investor Protection Corporation, to protect customers of brokerage firms that fail. 1972 Board of Directors In an important organizational change to strengthen the role of the public, investors and listed companies in NYSE governance, the 33-member Board of Governors is replaced by a 21-member Board of Directors with 10 public members. Concurrently, James J. Needham becomes the first full-time salaried chairman of the Exchange. 1972 Securities Industry Automation Corp. The Securities Industry Automation Corporation (SIAC) is organized. The subsidiary company, jointly owned by the NYSE and the American Stock Exchange, provides automation and data processing services. 1973 Depository Trust Company Depository Trust Company is established to provide a central depository for securities certificates and electronically record transfers of stock ownership. 1974 Trading Hours Extended Trading hours are extended from 10 a.m. until 4 p.m. 1975 Fixed Commissions Abolished On May 1, the Securities and Exchange Commission bans fixed minimum commission rates, a cornerstone of the US. securities markets and all other organized exchanges throughout the world. 1978 ITS The Intermarket Trading System (ITS) is inaugurated. ITS provides an electronic link between the NYSE and competing exchanges, enabling brokers to access all markets nation- wide to find the best purchase or sale price for a security. 1979 New York Futures Exchange Expanding into futures trading, the NYSE forms the New York Futures Exchange (NYFE). 1985 Trading Hours Changed Trading hours are changed to 9:30 a.m. until 4 p.m. where they remain today. 1987 Largest One Day Drop The Dow Jones Industrial Average experiences its largest one-day drop in history, 508 points. This drop on October 19, causes volume to surge to an unprecedented 604 million shares. The next day, volume reaches 608 million shares. 1988 Circuit Breakers The SEC approves a series of actions by the NYSE and the Chicago Mercantile Exchange to coordinate procedures between the equities and futures markets, including coordinated circuit breakers to control extreme price movements and the sharing of market surveillance data. 1993 1st German Listed Company Daimler-Benz AG becomes the first German listed company. 1998 First int'l corporation to list ordinary shares, October 26 DaimlerChysler AG became the first international corporation to list its ordinary shares on the NYSE. 1997 Trading in Sixteenths, June 24 NYSE begins trading stocks in increments of "sixteenths," an interim step toward quoting stock prices in decimals. 2000: Decimal Pricing Begins, August 28 The NYSE begins trading stocks in decimal price increments in a seven-stock pilot program. The first decimal-priced trade in NYSE history takes place at 9:30:09 a.m. in FedEx Corporation stock. 2000 First NYSE Exchange-Traded Fund, December 5 The first product available to U.S. investors that tracks the S&P Global 100 Index -- the iShares S&P Global 100 Exchange-Traded Fund -- begins trading on the NYSE under the symbol IOO. 2001: Trading in Fractions Ends, January 29 Decimal pricing of all NYSE stocks is fully implemented, ending the practice of trading in eighths and sixteenths of a dollar, used for more than two centuries. END