15 Amazing Facts about Stock Markets
The stock market is a great place to invest your money, yet it is also an uncertain and strange platform. You cannot predict the stock market's future, but sometimes conventional trends go by for years. The stock market has prevailed for many years and has a solid history. If you are an investor or someone looking to invest in the stock market, these amazing facts about it might heighten your interest. Here, we have listed the most interesting fifteen of them.
1. The Stock Market is Ancient
Most people think the stock market is about 100 years old, but it is way older than that. The first stock market began in the Netherlands. It was founded in 1602 by the Dutch East India Company. The company issued stock share papers to people buying shares. Later, it became the first stock market, known as the Amsterdam Exchange.
2. The Bull and Bear Analogy
You must have heard of the bull and bear analogy in the stock market, but do you know its origin? It is said that it came from the fight between a Spanish bull and a grizzly bear in a Californian forest. The bull was the first to attack, and the bear was defensive; hence, the bull was used for stock market rise, and the bear was used for downfall.
3. All Working People are Investors
You must have heard people say they don't own shares, so they don't have a part in the stock market. But if you are someone from the working class, you are directly or indirectly a part of the stock exchange. You are an investor through mutual funds, corporate shares or other similar assets.
4. The Most Volatile Month
If you know the stock market's history, you know of the significant stock market crashes of 1929 and 1987. A common thing among them and most other stock market crashes is that they are all in October. That is why it is also called the most volatile month, and if you are investing in the stock market, keep an eye out for this month.
5. The Worst Month for the Stock Market
September is the month that is notorious for its downturn in the stock market. A supposed reason is that most people withdraw their money in the summer, hence the downturn, but still, it is no fact and doesn't mean that you should draw your money out before September. Who knows what the future might hold?
6. $3 Billion Worth of Shares in $5000
You might know that people make blunders in the stock market, but this one has been the greatest in history. A person sold $3 billion worth of shares for $5000. A Japanese trader had to sell one share of J-Com stock for ¥640,000; instead, he sold 640,000 shares for 1 Yen each.
7. The US Stock Market Share
We all know that the US has a significant share in the stock market, but do you know how much it is? It has around 40% of the market share, a vast difference from Japan's second position, with 7.5% of the stock market shares.
8. The Most Expensive Share
Warren Buffet is the biggest investor in the stock market, and he is Berkshire Hataway's founder. Not only is he the most expensive shareholder, his Berkshire Hataway is the most expensive share in the stock market. The BRK.A alone costs more than $300,000.
9. Pirate Stock Exchange
Yes, it is precisely as the name sounds. There is a stock exchange in Somalia where the local people invest in the pirate gangs and use this money to plan hijacking missions.
10. The First Bubble in the Stock Market
Most people only know of the dot-com bubble of 2001 and the 1929 Great Depression, but did you know there was an even bigger stock market bubble in the past? The first stock market bubble was as early as 1720. It was called the South Sea Bubble. A South Sea company in the UK was quite successful. The price went from 100 GBP to more than 1000 GBP in less than a year.
11. The US Hydrogen Bomb
This one fact is the coolest of all: how a man could link the stock market and science. A professor of physics discovered that people used lithium as a fuel to make hydrogen bombs, which was kept a secret by manufacturers. He found out from the stock market how the price of lithium rose during that time.
12. NYSE was not Always NYSE
NYSE is the largest stock exchange in the world, but you won’t believe that not just a few years ago; no one knew of it as the great NYSE. It was named NYSE in 1863. Before that, it was referred to by another name; even now, some call it the Big Board.
13. Oracle of Omaha
As we discussed earlier, Buffett is the top investor in the stock market. His wise decisions and investment strategies have gained him the title of the Oracle of Omaha among the people of the Stock Market.
14. Suit and Tie Rule
NYSE is considered the most traditional among all the stock exchanges. How traditional can it be? Some sources have heard that employees are only allowed to enter the stock exchange offices wearing formal attire, particularly suits and ties.
15. More than sixty Stock Exchanges
Most people know of only two stock exchanges, NYSE and NASDAQ, but you will be surprised to know that there are more than sixty stock exchanges in the world now. American stock exchange also has a significant share in the market, and three Asian stock exchanges also make it to the top five in the list.
Conclusion
The stock market has always been on the news, but there are a few facts you don't hear in everyday conversations. A lot of these surprised me as well. These will help you bust some myths and make you think outside the box because now you know that stock market bubbles have always existed and how ancient they are, and many things are put into perspective.
Among all of these facts, the hydrogen bomb one was the most fascinating fact for me. Which one did you find the most interesting? Also, if you know any other interesting facts about the stock market, let us know.
