The stock market is where businesses and individuals buy and sell shares of coporations. As an investor, an individual sometimes wields power over the company. This shareholder offers valuable financial support to the company and in return benefits from the profits realized. The number of shareholders owning a company could range from a few individuals to thousands- depending on the size and capital requirements of the corporation. As a business grows, it requires adequate funds to meet its financial goals. When a company is in a state of substantial growth, it may sell shares to the public to gain a stronghold in the market. Selling shares to the public has been a practice with many businesses for many years.

Companies selling portions of their business to the public is not something new. The financial market has always been a platform for buyers and sellers, where both parties share a mutually profitable relationship. The stock market is like the financial spine of a country- a place where shares of numerous companies are bought and sold. In the United States there are three share markets that play a crucial role in shaping the economy- 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.

While we think of Wall Street as the financial hub of the US, history has a different story to tell. Boston was once the countrys financial center. Boston traders 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. Even though it is difficult to imagine the financial hub of America as something other than Wall Street, 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.