#09 - History of Stock Exchanges

This week we dive into the history of stock exchanges. Understanding the origins and evolution of these financial hubs provides valuable insights into the world of investing and helps us appreciate the sophisticated systems we rely on today.

Market News

• BlackRock and Citadel Planning a New National Stock Exchange in Texas

  • The Texas Stock Exchange plans to file registration documents with the SEC this year and begin hosting trades in 2025 and begin listing in 2026.

  • Companies & businesses continue to shift to states with more favorable regulatory and taxation policies. Texas remains a leader in firm relocations including from businesses that originated in California and New York.

  • “TXSE” will ultimately create more competition around quote activity and liquidity. And should result in more consistent and reliable markets that benefit investors and global issuers.

• Lululemon Stock Gets Boost After New Profit Forecast

  • Prior to the earnings release, $LULU stock was down about 40% to start 2024. One of the worst performers in the S&P 500.

  • With heightened attention on Alo Yoga & Vuori many questioned if $LULU had an early rise in the industry.

  • The company is continuing to benefit from the growth of their men’s golf and training lines. The company once had a moat on the athleisure now has to deal with grown competition in the US.

• Waste Management to Acquire Stericycle for $7.2b

  • Waste Management would significantly expand its portfolio by integrating Stericycle's specialized services, allowing it to offer waste management solutions that include medical and hazardous waste.

  • The merger would strategically position $WM diversity as a company and enhance its competitive edge and supporting its long-term growth objectives.

  • This could create higher barriers for competitors attempting to enter the medical waste management sector, as $WM would control a significant portion of that market.

Freedom Fund Update

• 6/7/24 - Friday Freedom Fund Purchase:

  • 2 shares of $SCHB - Schwab US Broad Market ETF (remember last week I talked about working to make this position ~60% of the Freedom Fund.

  • 1 share of $SHOP - Shopify - I still think the earnings dip was an oversell and this is a good dip to continue to build an entry position. I think there is a short term 25% upside to Shopify stock and the long term potential is still prevalent as ecommerce and small business/influencer based online retail continues to grow

  • 1 share of $APLE - Apple Hospitality REIT - Whenever I have less than $20 to buy a stock leftover in the fund I tend to buy $APLE. They own Marriot and Hilton hotels across the country two of the best performing hospitality brands out there.

Freedom Fund Background: I created the Freedom Fund as a public brokerage account back in October of 2022 to share that anyone with a social security # and a bank account can begin their investing journey by investing a couple hundred dollars a week. Every week and month I post on X (@GrahamInvesting) public updates about the purchases, exits, dividends, and growth of the fund if you want to follow in real time. The biggest obstacle people have to investing is just getting started so I decided to start a new account at $0 to start from nothing with you.

Key Milestones in the History of Stock Exchanges

The history of stock exchanges is a testament to the evolution of global financial markets. From the early days of trading in coffeehouses to the high-tech digital platforms of today, stock exchanges have continually adapted to meet the needs of investors and the economy. Understanding this history provides valuable insights into the mechanisms and innovations that drive today's markets.

• 12th Century - France - Courtiers de Change: The earliest roots of modern stock exchanges trace back to France, where merchants managed and regulated agricultural debts on behalf of banks.

• 1602 - Amsterdam Stock Exchange: Established by the Dutch East India Company, it is widely recognized as the first official stock exchange. This institution allowed investors to buy and sell shares of the company, laying the foundation for modern equity markets.

• 1698 - London Stock Exchange (LSE): Initially, stockbrokers met in coffeehouses to conduct business. Jonathan's Coffee House became the central hub, eventually evolving into the LSE, one of the world's oldest and most influential stock exchanges.

• 1792 - New York Stock Exchange (NYSE): Founded under the Buttonwood Agreement, 24 brokers and merchants signed an agreement to trade securities in a structured manner, leading to the creation of the NYSE on Wall Street.

• 1817 - Philadelphia Stock Exchange (PHLX): Known as the oldest stock exchange in the United States, the PHLX was established to provide a formalized securities market and played a significant role in American financial history.

• 1875 - Bombay Stock Exchange (BSE): Asia's first stock exchange was established in India, providing a regulated platform for trading securities and fostering economic growth in the region.

• 1896 - Dow Jones Industrial Average: Charles Dow created the Dow Jones Industrial Average to serve as a benchmark for the performance of the U.S. stock market, a practice that continues to this day.

• 1971 - NASDAQ: The National Association of Securities Dealers Automated Quotations (NASDAQ) became the world's first electronic stock market, revolutionizing trading with its innovative use of computer technology.

• 1986 - London - Big Bang: The deregulation of financial markets in London led to significant technological advancements and the modernization of the LSE, making it one of the most competitive exchanges globally.

• 2006 - NYSE and Euronext Merger - NYSE Euronext: The merger between the NYSE and Euronext created the first transatlantic stock exchange, enhancing global trading capabilities and offering a wide range of securities.

• 2007 - Shanghai Stock Exchange (SSE) Launch: China's rapid economic growth led to the re-establishment of the SSE, which has become a major player in the global financial markets.

• 2020 - Cryptocurrency Exchanges: The rise of digital currencies like Bitcoin led to the creation of cryptocurrency exchanges, providing platforms for trading digital assets and reshaping the financial landscape.

•  2025 - Texas Stock Exchange (TSXE): COMING SOON 🤠

The purpose of Graham’s Gazette and my social account @GrahamInvesting is to help others get started and stay consistent on their own personal, professional, and financial journey. I appreciate the time you take in reading & interacting with me and look forward to growing together.

Thanks for investing your time reading this.

-Graham (@GrahamInvesting)

Disclaimer: Graham’s Gazette provides information and resources related to investing, financial topics, and personal growth for educational and entertainment purposes only. The content presented is not intended to be construed as financial advice. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial decisions. Graham’s Gazette and its creators do not assume any responsibility for the accuracy or completeness of the information provided nor do they guarantee any specific results from such use of information.