What is Wall Street?

Often depicted in movies as the pinnacle of the financial world and constantly popping up in our weekly news broadcasts, Wall Street is a symbol of financial power and influence, but what exactly is it?

 

Wall Street is more than just a street in Lower Manhattan, New York. It's the beating heart of the American financial system. This bustling epicentre is home to some of the world's largest financial institutions, including banks, stock exchanges and investment firms.

The New York Stock Exchange's history traces back to the signing of the Buttonwood Agreement by twenty-four New York City stockbrokers and merchants on May 17, 1792, under a Buttonwood tree located outside 68 Wall Street.

This agreement organized securities trading in New York City and marked the beginning of the New York Stock Exchange.

At its core, Wall Street serves as the centre of the stock market in the United States. The New York Stock Exchange (NYSE) and NASDAQ*, two of the most prominent stock exchanges globally are based here. These exchanges provide a platform for buying and selling shares of publicly traded companies.

The connection of global financial markets means that what happens on Wall Street doesn't stay confined to its physical location. News of a major economic event or a shift in investor confidence on Wall Street can and will quickly travel worldwide, affecting markets in Asia, Europe and elsewhere for the positive and the negative. This link underscores the significance pull Wall Street in shaping the broader global financial landscape.

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