Changes

The idea of a stock market began to spread throughout Europe. London soon emerged as a key center, with traders at first meeting in a coffeehouse in the early 18th century. The coffee house became very active for trade and soon was completely take taken over by traders who formalized the name "stock exchange" in the English language. In the 18th century, as English explorers began to spread across North America, many of their expeditions, including trading for furs and other exotic products, began to be financed by stock exchange trading. Perhaps though the biggest turning point for the early stock market in establishing itself as a strong link to the wider economy occurred during the Industrial Revolution from the late 18th century through the early 19th century. The London stock market was seen as a place where startup enterprises would be financed and new companies would seek venture capital and financing from stock investors.New industries now could develop quickly and the pace of industrial and economic change greatly quickened as stocks financed enterprise.<ref>For more on how stock markets spread and helped finance the Industrial Revolution, see: Caprio, Gerard, Douglas W. Arner, Thorsten Beck, Charles W. Calomiris, Larry Neal, and Nicolas Véron, eds. 2013. <i>Handbook of Key Global Financial Markets, Institutions and Infrastructure</i>. First edition. Boston: Elsevier. </ref>

In the United States, in 1792, on the corner of Walled Street and Broadway in New York, that country's first stock exchange was setup. It was formalized through the Buttonwood Agreement at 68 Wall Street underneath a buttonwood tree (Figure 2). In 1817, the same organization moved to 40 Wall Street and formally changed their name to the New York Stock and Exchange Board, the same name used today. Government bonds and the First Bank of the United States, a government bank, were initially traded. The first private company to be traded was the Bank of New York. The Bank of North America soon afterwards also became among the early companies trading at the New York Stock Exchange. Throughout out the 19th century, other cities, such as Philadelphia, also established stock markets as places to trade securities and stocks in companies. In fact, Philadelphia became one of the main competitors to New York's stock market. However, in the early to mid 19th century, panics became common and this would great greatly affect traders. Among the relatively resistant markets was the New York Stock Exchange, which made it more favourable for companies and brokers for conducting trades. The telegraph also meant that every city did not need a stock market, as a single trading exchange could conduct transactions for many companies. Trades slowly transformed from single calls sent by message to transactions sent by telegraph to speedup tradingacross distant areas. This helped to now consolidate markets to several key cities such as New York.<ref>For more on the history of Wall Street and its importance to the United States, see: Geisst, Charles R. 2012. <i>Wall Street: A History</i>. Updated ed. Oxford ; New York: Oxford University Press.</ref>