when was the stock market founded? History & timeline

When Was the Stock Market Founded?

The question “when was the stock market founded” appears in many searches. When was the stock market founded is most often answered by pointing to the Buttonwood Agreement of May 17, 1792, as the symbolic origin of organized stock trading in the United States. When was the stock market founded can also refer to later institutional milestones — notably the 1817 constitution of the New York Stock & Exchange Board and the adoption of the New York Stock Exchange name in 1863.

Global origins of stock exchanges

Before answering when was the stock market founded in the U.S., it helps to note earlier European precedents. Amsterdam hosted organized securities trading in the early 1600s, and other European cities developed marketplaces for government debt and company shares. These earlier venues set structural and legal precedents that influenced later U.S. practice.

Early U.S. securities trading (late 18th century)

When was the stock market founded in America must be seen against post-Revolution financial needs. After the Revolutionary War, federal and state governments issued debt; merchants and brokers began to trade those securities informally in New York, Philadelphia and other ports. These informal networks laid the groundwork for later formal agreements.

The Buttonwood Agreement (May 17, 1792)

The most commonly cited answer to when was the stock market founded is the Buttonwood Agreement, signed by 24 brokers and merchants under a buttonwood tree on Wall Street on May 17, 1792. The agreement sought to standardize commissions and to prefer dealing among signers rather than public auctioneers. While the original document was brief, its symbolic importance is large: when was the stock market founded is often anchored to this compact.

Signers and immediate effects

Signatories were primarily New York brokers and merchants seeking predictable commissions and orderly trading. The Buttonwood Agreement helped move activity away from informal auctioneers and toward a more cooperative broker system — a first institutional step answering when was the stock market founded in practice.

Formal organization — New York Stock & Exchange Board (1817)

A further institutional answer to when was the stock market founded is the 1817 constitution that formed the New York Stock & Exchange Board, introducing formal rules for membership and trading. This step turned an informal broker network into a self-governing body with written regulations.

Evolution into the New York Stock Exchange (1863) and the physical exchange

When was the stock market founded can also be tied to 1863, when the organization adopted the name New York Stock Exchange (NYSE). Over the 19th century the exchange established a permanent home on Broad Street; membership “seats” and a recognizable trading floor became central features.

Technological and regulatory milestones

Key innovations (telegraph, the stock ticker in 1867, telephone, and later electronic trading) expanded market scale and speed. Major crises (panics of the 19th and early 20th centuries and the 1929 crash) led to federal responses; as of 2025-12-30, according to Encyclopaedia Britannica and NYSE historical summaries, the creation of the U.S. Securities and Exchange Commission in 1934 is a pivotal regulatory milestone.

As of 2025-12-30, according to the New York Stock Exchange historical pages, these developments are the principal institutional markers used when historians answer when was the stock market founded.

Other early American exchanges and comparisons

Philadelphia’s exchange (founded 1790) and other regional marketplaces rivaled New York in early years. Therefore, when was the stock market founded in America can legitimately point to several local starting points depending on context.

Timeline of key dates

• Early 1600s — Amsterdam precedents
• 1790 — Philadelphia exchange (early U.S. trading venue)
• May 17, 1792 — Buttonwood Agreement (commonly cited answer to when was the stock market founded)
• 1817 — Constitution of the New York Stock & Exchange Board
• 1863 — Name adopted: New York Stock Exchange
• 1867 — Stock ticker introduced
• 1934 — SEC created
• 1971 — NASDAQ and electronic trading era begins

Legacy and modern meaning of "founding"

Answers to when was the stock market founded vary by perspective: symbolic (Buttonwood, 1792), institutional (1817), or functional (earlier global precedents). Each lens is used by historians and reference sources to explain origins and evolution.

See also

• New York Stock Exchange
• Buttonwood Agreement
• Philadelphia Stock Exchange
• History of securities exchanges

References

As of 2025-12-30, the following authoritative sources summarize the points above: New York Stock Exchange historical materials; Encyclopaedia Britannica entries on stock exchanges; academic and reference histories of American finance (including treatments of the Buttonwood Agreement and the 1817 constitution).