NEW YORK STOCK EXCHANGE

(NYSE) world's largest marketplace for securities. The exchange evolved from a meeting of 24 men under a buttonwood tree in 1792 on what is now Wall Street in New York City. It was formally constituted as the New York Stock and Exchange Board in 1817. The present name was adopted in 1863. Membership, limited to 1,366 since 1953, is obtained by purchasing (since 1868) a seat from an existing member. Greater commercial activity in the United States after the War of 1812 and speculation in railroad stocks in the 1830s increased demand for capital and stimulated trading at the exchange. After the Civil War, the exchange provided the capital for the accelerating industrialization of the United States. After the Panic of 1837, when many investors suffered heavy losses, the exchange began to demand that companies disclose to the public information about their finances as a condition of offering stock. The Stock Market Crash of 1929, which signaled the start of the Great Depression, led to investigation by the federal government and regulation by the Securities and Exchange Commission. A corporation must meet certain rather stringent requirements to be listed on the NYSE. These include that the company must earn $2,500,000 (before taxes), have at least 1,000,000 shares of stock outstanding, give common stockholders voting rights, and publish periodic financial statements.