New York Stock Exchange-Why is everyone screaming?

Oh yeah, the New York Stock Exchange is the epicenter of the trading world, but it looks like an amusement park or playground. Close your eyes, noisy, noisy, traders yelling on the floor, adult men in suits and sweating, button-ups gesturing like a wild herd of kids playing tackle football in the open field I can imagine a shirt.

But why do traders and brokers still behave like angry mobs in this modern and era? Anyway, are you using a computer for most of your transactions these days? Isn’t this the information age? It is an era when aseptic immediate communication dominates. How did this madness begin? Why is it still going on? In this article, we’ll explore and explain why Wall Street and many other trading pits resemble post-soccer riots.

In the first place, there are many exchanges and exchanges from Chicago’s bond pit to Nikkei in Japan, but the most famous exchange in the world is undoubtedly the intersection of Wall Street and Broad Street in Manhattan. The New York Stock Exchange (NYSE) has existed since 1792, when the famous Buttonwood Agreement was signed by 24 New York brokers and businessmen. Most people think of the Dow Jones Exchange when they think of the stock market. It is made up of 30 of the largest companies in the United States, from GE and McDonald’s to Wal-Mart.

The principle is simple. People use stockbrokers to buy stock or company ownership (and their profits or losses) in exchange for cash. Money is constantly flowing around the room at a tremendous rate, and so is the action. Basically, these stocks are “auctioned” by the highest bidders who agree with the purchase price, so each broker will accept and accept bids before the stock price rises. This was the beginning of the yell, and brokers drowned competing brokers in an attempt to beat the purchase price they wanted, shouting their price and acceptance as loudly as possible. Bid quickly with a penny per share can mean a profit difference of millions of dollars in a single large share purchase, so it’s often used when it’s on the line. Understand immediacy and power.

Originally, the period of the room was more gentlemanly. Respected businessmen and brokers traded stocks at a moderate pace, and wealth only moved from family to family among wealthy individuals. Rockefeller may buy some of Ford’s or Vanderbild’s profits, knowing that these successful wealthy men will generate more wealth.

But when America grew and the American dream was born, the general public wanted that action. After the American Industrial Revolution in the late 1800s, the middle class emerged as factory workers fought for much of the company’s pie and eventually won better wages and working conditions. The idea that any American can get rich and get rich quickly has taken root and is a better way than going through the New York Stock Exchange.

By the 1920s, many Americans had invested in the stock market. The New York Stock Exchange was booming. Instant millionaires were everywhere. There was a whole new level of wealthy Americans in the living room equipped with a ticker tape machine, which immediately updated the market price. This is when the screams and gestures begin in earnest as the broker is overwhelmed by buyers, new customers, and purchase orders. They screamed and screamed, waving their arms and taking the order first. The country’s stance was positive. The theme song was Blue Sky, as that era was known as the Roaring Twenties and everything was broken up for most Americans. Consumer credit was created to support the sale of overproduced products thanks to large equity investments. The only problem was that the entire explosion of wealth was built in Card’s house, like the Ponzi scheme. They were selling stocks to non-profitable start-ups, they were just filling their vaults with investment cash, and too many people were fully utilized in the stock market. For nine years from 1920 to 1929, stock prices went straight with no end in sight.

It was until October 24, 1929, well known as Black Thursday. It was the day of the crash, which marked the beginning of the Great Depression, the greatest economic catastrophe the United States has ever faced. The pit exploded loudly when the broker shouted “sell, sell, sell” to reduce losses before it was too late, but there were no buyers. Investors fled all at once, most of them went bankrupt, broke, and blunt.

Nonetheless, the New York Stock Exchange has been patient and, like any other exchange or market, has had turbulent ups and downs ever since. The New York Stock Exchange has had many mountains and valleys over the years. The latest crash occurred in 2008 after the housing bubble burst. The market is still recovering. Numerous regulations have been put in place to make transactions more fair and acceptable. Trade day traders from your home computer buy and sell instantly. In fact, most recent transactions are done via computers.

So why is a grown-up man in a suit screaming, screaming, and gesturing like a five-year-old man throwing a tempered tantrum? That’s one thing that never seems to change.

Because the New York Stock Exchange at its heart is still an auction house system, all Dow transactions take place last on its famous floor. Even if you make a purchase on E * Trade, the transaction will be accepted and completed on the floor of the New York Stock Exchange, where the broker is the facilitator. Thanks to technological advances in computers and communication systems, screams aren’t necessary and aren’t as widespread as they used to be, but there are still brokers on the floor who have to overcome the competition with punch. In fact, hand signals are becoming more important for pitting stockbrokers, so you can quickly signal the floor specialist who placed the actual buy / sell order. It describes all the crazy gestures.

“Orders come in through a brokerage firm that is a member of the exchange and flow to a floor broker who goes to a specific location on the floor where the stock is traded. At this location, the trading post, match buyers and sellers. Specialist whose job is. “

By using wild and obvious gestures and yelling as needed, you can hear that brokers haven’t communicated much with auctioneers these days. The noise and anger are sometimes very strong, the old havoc turns its ugly head back, and outsiders appear to have had a rugby scrum. In fact, it simply means that many transactions are happening in front of you and hurt your ears.

The day may come when everything will be quiet on the New York Stock Exchange, but it certainly won’t be that interesting. But perhaps there are always human traders on the floor to ensure that the deal is done. This always means screaming and sign language. So now, the next time you see an enthusiastic video clip from the New York Stock Exchange you know, brokers aren’t practicing to become professional wrestlers or politicians. They haven’t learned how to guide the plane to the runway or imitate their favorite NFL head coach by the side of a nearby football game. They are just trying to make or save money for their customers. If you turn out to be one of those clients and it’s at stake, you might think these deals are worth screaming, even if you only have a 401K or retirement fund.