The agreement that happened under a buttonwood tree involved the most successful and talented brokers from 24 states. The most important detail is that it marked the beginning of Wall Street’s investment community. Basically, if you take a look at the history of this prominent stock exchange, which is the largest equities market in the world, you will reveal how it first emerged with a purpose to help a new government of the US to pay off major debts. Then it developed and grew considerably to meet the requirements of those investors who wanted profits and public corporations that needed more capital.
In 1790, people had only a few types of securities available for trades, including bonds and shares. There were many auctioneers, merchants, and stock brokers who purchased and sold them in such different places as offices, marketplaces, coffee houses, and others around Wall Street. This means that they didn’t have any set time or location for trading so that both buyers and traders needed to look for each other all the time.
When it comes to basic technical terms, this kind of stock market wasn’t liquid enough so that the purchases and sales of stocks were not simple and fast, especially compared to modern times. On May 17, prominent Wall Street brokers decided to solve this liquidity issue in a fast manner. In writing, they agreed to trade only with one another, and this event took place under a buttonwood tree. This is how the largest stock exchange in the world starts humbly with a simple and short paper called the buttonwood agreement. It’s clear that this title was chosen according to the place of the informal meeting of these brokers.
These days, there are many people who prefer to invest their hard-earned money trying to earn more cash. Modern investment can have a range of forms, from buying a new house to bonds and stocks. It’s hard to imagine the modern world without Wall Street because it’s a center of the largest stock exchange market in the world. This place attracts many investors who want to multiply their profits in a matter of a few moments. However, some of them may not be aware that everything started under a buttonwood tree more than 2 centuries ago. This agreement between 24 investors was a beginning of Wall Street, a place with a prominent and unique history of success. Read its terms and conditions if you’re curious about them.
The agreement that happened under a buttonwood tree involved the most successful and talented brokers from 24 states. The most important detail is that it marked the beginning of Wall Street’s investment community.