 | |
| Type | Stock exchange |
|---|---|
| Location | Boston, Massachusetts, United States |
| Founded | 1834 |
| Owner | Nasdaq |
| Currency | United States dollar |
The Boston Stock Exchange (now NASDAQ BX, formerly BSE) was a regional stock exchange formerly located in Boston, Massachusetts. It was founded in 1834, making it the third-oldest stock exchange in the United States. On October 2, 2007, NASDAQ agreed to acquire BSE for $61 million. [1]
Originally known as the Boston Brokers' Board, the Boston Stock Exchange was founded on October 13, 1834, when thirteen brokers agreed to meet for a half-hour daily to compare their offerings. [2] [3] P.P.F. Degrand was described by Clarence W. Barron and Joseph G. Martin as "the man to whose indomitable energy and foresight the existence of the Boston Stock Exchange is largely due". [2] The other founding members were:
The first officers of the exchange were Samuel Dana (president), George W. Pratt (vice president), and Thomas R. Sewell (secretary and treasurer). [4]
When it first opened the only available securities on the exchange were stocks in banks, insurance companies, local mills, canal projects, small mining operations, and various public debts. [5] As the exchange grew it dealt in iron, coal, and copper stocks. [3] The exchange was used by the Lake Superior copper mines during the United States' first copper boom. The textile mills of Lowell, Lawrence, Manchester, and Lewiston that were a part of the exchange in its early years were almost totally absent by 1893, as the business was mostly held by auctioneers. [2]
The Boston Stock Exchange played an important role in the development of railroads in New England by providing a market for their securities. Railroads that used the exchange included the Boston and Providence Railroad, Boston and Lowell Railroad, and Boston and Worcester Railroad. [2] The BSE also provided early capital for the American American Bell Telephone Company, United Shoe Machinery Corporation, United Fruit Company, Union Pacific Railroad, and Calumet and Hecla Mining Company. [6]
By 1844 the number of members had grown from 13 to 36. In 1855 it had grown to 75 members. [2] An economic boom in 1879 resulted in a high demand for membership so the BSE voted to cap its membership at 150, where it stood for many years. [5]
On November 9, 1885, the Boston Stock Exchange held its first continuous session. Prior to this there was a morning board and afternoon board. The morning board would start at 10:30 AM and the afternoon board would begin at 2 PM. Both would adjourn whenever brokers had completed their orders, which could take anywhere between one and three hours. [7]
The Boston Stock Exchange closed from June 30 to December 10, 1914, due to chaos created by the start of World War I. It was the first time the exchange had ever suspended operations. [5]
During World War II, women were permitted to work on the BSE floor due to the lack of young men available to work as pages. [6]
In 1965, the BSE switched from having an unsalaried president elected from the exchange's membership to having a full-time salaried president as part of a modernization plan. [8]
The BSE grew in the mid-1960s when institutions began utilizing regional exchanges for "give-ups" or the sharing of commissions between brokers. [9] In 1967, a record 67 million shares were traded and the cost of a seat on the exchange had grown to $14,000 (up from $2,000 three years earlier). [9] [10] On December 5, 1968, the U.S. Securities and Exchange Commission outlawed "give-ups", which cut the number of trades on the BSE down to 24.6 million shares in 1970. [9] [11]
In 1981, the BSE hired Charles J. Mohr, a 34-year-old vice president of the New York Stock Exchange, to serve as its first full-time paid chairman and CEO. [12]
Increased computer trading in the early 1990s resulted in the BSE losing business to NASDAQ and similar exchanges. At the same time, the BSE and other regionals were harmed by rise of large institutional investors, who preferred the New York Stock Exchange to regionals. By 1992, the BSE and Philadelphia Stock Exchange were tied as the nation's smallest regional. [13]
In 1998, a proposed merger with the Cincinnati Stock Exchange fell through when the two sides could not come to an agreement. [14]
In its later years, the BSE served as an alternative to the New York Stock Exchange for the area's mutual fund companies. In 2001, the BSE reached its peak of 100 million shares a day. [15]
In 2002, the BSE co-founded the Boston Options Exchange (BOX), an automated equity options exchange, with partners the Montreal Exchange (MX), a derivatives exchange, and Interactive Brokers, a discount brokerage. [16] By 2005 the BOX controlled 6% of the market. [17]
As a result of BOX's success, Fidelity Investments and several Wall Street brokerage houses invested $20 million to help develop an electronic stock trading platform for the BSE. [17] The electronic system handled less than half a percent of the daily US stock transactions and it was shut down in September 2007. [15]
In 2007, NASDAQ acquired the Boston Stock Exchange for $61 million ($38 million cash and $23 million in debt). The deal gave NASDAQ BSE's clearing license, which allowed it to settle trades made on its exchange rather than pay a third party to clear its transactions. It also allowed NASDAQ to offer companies symbols with one to three letters, which would allow companies to move from the New York Stock Exchange to NASDAQ without changing their symbols. [15] The sale did not include the Boston Options Exchange, which was sold later that year to the Montreal Exchange. [18]
The Boston Stock Exchange's original headquarters was on the third floor of the Washington Bank Building at 47 State Street. In 1844, the BSE moved to the fourth floor of the Merchants Exchange. On March 28, 1853, the exchange moved to the Union Bank Building at 40 State Street. The exchange moved again ten years later, this time to the Howe Building at 13 Exchange Street. On November 9, 1885, the BSE moved back to the Merchants Exchange building, this time to the hall known as the Reading Room. The exchange temporarily moved back to the Howe Building in 1890 when the Merchants Exchange building was demolished. The exchange moved to the new Merchants Exchange building on April 20, 1891. [2] In April 1911, the exchange moved to a two-story domed building at 53 Congress Street. [19] In 1980 it moved to the 38th floor of One Boston Place. [20] In 1999 the BSE moved to the old Boston Safe Deposit and Trust building at 100 Franklin Street. [21] When the BSE was sold to NASDAQ the Boston office was closed and operations were consolidated in New York. [15]
NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange.
The New York Stock Exchange is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization.
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets with buyers and sellers consummating transactions via open outcry at a central location such as the floor of the exchange or by using an electronic trading platform.
London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. As of August 2023, the total market value of all companies trading on the LSE stood at $3.18 trillion. Its current premises are situated in Paternoster Square close to St Paul's Cathedral in the City of London. Since 2007, it has been part of the London Stock Exchange Group. The LSE was the most-valued stock exchange in Europe from 2003 when records began until Autumn 2022, when the Paris exchange overtook it. According to the 2020 Office for National Statistics report, approximately 12% of UK-resident individuals reported having investments in stocks and shares. According to the 2020 Financial Conduct Authority (FCA) report, approximately 15% of UK adults reported having investments in stocks and shares.
Philadelphia Stock Exchange (PHLX), now known as Nasdaq PHLX, is the first stock exchange established in the United States and the oldest stock exchange in the nation. The exchange is owned by Nasdaq, which acquired it in 2007 for $652 million, and is headquartered in Philadelphia.
BSE Limited, also known as the Bombay Stock Exchange, is an Indian stock exchange which is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, it is the oldest stock exchange in Asia, and also the tenth oldest in the world. The BSE is one of the world's largest stock exchanges by market capitalization with a market cap of US$ 3.8 trillion as of June 2023.
Clarence W. Barron was one of the most influential figures in the history of Dow Jones & Company. As a career newsman described as a "short, rotund powerhouse", he died holding the posts of president of Dow Jones and de facto manager of The Wall Street Journal. He is considered the founder of modern financial journalism.
Nasdaq, Inc. is an American multinational financial services corporation that owns and operates three stock exchanges in the United States: the namesake Nasdaq stock exchange, the Philadelphia Stock Exchange, and the Boston Stock Exchange, and seven European stock exchanges: Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn, and Nasdaq Vilnius. It is headquartered in New York City, and its president and chief executive officer is Adena Friedman.
Budapest Stock Exchange(BSE) (Hungarian: Budapesti Értéktőzsde (BÉT)) is the 2nd largest stock exchange in Central and Eastern Europe by market capitalization and liquidity. It is located at 55 Krisztina Boulevard, Budapest, Hungary, in the Buda Centre of the Hungarian National Bank Previously, from 1864, during the Austro-Hungarian Empire it was located in the Budapest Stock Exchange Palace building, until a large trading floor was necessary. The exchange is controlled by listed issuers, by Hungarian private investors and by the central bank. The BSE is member of the World Federation of Exchanges and the Federation of European Securities Exchanges.
PaineWebber & Co. was an American investment bank and stock brokerage firm that was acquired by the Swiss bank UBS in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine and Wallace G. Webber. Operating with two employees, they leased premises at 48 Congress Street in May 1881. The company was renamed Paine, Webber & Co. when Charles Hamilton Paine became a partner. Members of the Boston Stock Exchange, in 1890 the company acquired a seat on the New York Stock Exchange. Wallace G. Webber retired after the business weathered a major financial crisis of 1893.
Broad Street is a north–south street in the Financial District of Lower Manhattan in New York City. Originally the Broad Canal in New Amsterdam, it stretches from today's South Street to Wall Street.
The Phiroze Jeejeebhoy Towers, popularly known by its original name of BSE Towers, is a 29-storey building in downtown Mumbai on Dalal Street, near its intersection with the Mumbai Samachar Marg. The building is owned and occupied by the Bombay Stock Exchange (BSE). BSE has secured a trademark for its iconic building.
Thomas Marshall Howe was a Whig member of the U.S. House of Representatives from Pennsylvania. He was a financier, statesman, manufacturer, and philanthropist. He was considered the leading citizen of Pittsburgh of his day.
Thomas Peterffy is a Hungarian-born American billionaire businessman. He is the founder, chairman, and the largest shareholder of Interactive Brokers. Peterffy worked as an architectural draftsman after emigrating to the United States, and later became a computer programmer. In 1977, he purchased a seat on the American Stock Exchange and played a role in developing the first electronic trading platform for securities. Forbes's 2023 list of The World's Billionaires estimated his net worth at US$25.3 billion, making him the 57th richest man in the world.
In corporate finance, a listing refers to the company's shares being on the list of stock that are officially traded on a stock exchange. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing, subject to conditions.
The Merchants Exchange building (1842-1890) in Boston, Massachusetts was built in 1841 from a design by architect Isaiah Rogers. Centrally located on State Street, it functioned as a hub for business activities in the city.
Peter Paul Francis Degrand (1787–1855) or P.P.F. Degrand was a French-born broker and merchant in Boston, Massachusetts, in the 19th century.
The Bremen Exchange in Bremen was one of the eight German Regional stock exchanges until 2007. In 2000 it ceased to use the Open outcry method and in 2007 the last operative units were closed. The property of exchange's holding company went to the newly established Foundation of the Bremen Stock Exchange, a non-profit organisation which is intended to benefit scholarship, research, and culture.
Interactive Brokers LLC (IB) is an American multinational brokerage firm. It operates the largest electronic trading platform in the United States by number of daily average revenue trades. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, funds, and some cryptocurrencies.
Murray Roberts Ballou was an American financier who led the Boston Stock Exchange from 1870 to 1900.
{{cite web}}: CS1 maint: archived copy as title (link)Operator of the Nasdaq, Nasdaq Nordic, and Nasdaq Baltic stock exchange systems | ||
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