United States Stock Market Impact on Our Economy

Running Head: United States Stock Market Impact on Our Economy 2

United States Stock Market Impact on Our Economy 2

Trevor Leggett

BUS 615: Managerial Economics

Dr. Chad Greenfield

5/1/2022

History of US Stock Market

The stock market today is something that we are very familiar with. It is an excellent indicator to show our current economy is doing and predict how it will rise or fall in the foreseeable future. It reflects on and shows how well companies are doing, which then allows investors to determine on whether or not to invest in or not invest in that particular company. While the world sees the United States stock market as the focal point, the original and first stock market originated in Amsterdam in the year 1611 when the Dutch East India Company decided to sell stock and pay dividends. Even though the first stock exchange or market was created in 1611, the United States didn’t make their appearance until the 1700s. This happened when a very small group of merchants made the Buttonwood Trade Agreement. This small group of men met every single day of the week to buy and sell stocks and bonds, which in return become what we know today as the New York Stock Exchange. It is safe to sat that stock market has come along way from a couple of small groups of merchant men meeting to exchange and sell stocks. Although, that small group of merchants can take the recognition for creating the stock market as we know it, many investors, companies, and regulators have contributed to its growth along the way (Hwang, 2021).

Importance of Stock Market

The stock market is very important to not only our economy, but also our life. The main importance of the stock market is that if it crashes, like it did in 2008, then it can drive inflation through the roof and then it makes us, consumers pay more for the products and basic necessities that we need to live. On the other hand, the stock market is very important for us because we live in a democracy, where we value our fundamental rights of free speech, freedom to vote for our individual choice. Therefore, the stock market is a vital component of our free-market society because it enables

The Stock Market is Not the Economy