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  • Wall Street and investing, what is the connection? – THIS IS WHAT YOU NEED TO KNOW!
  • Wall Street and investing, what is the connection? – THIS IS WHAT YOU NEED TO KNOW!

Wall Street and investing, what is the connection? – THIS IS WHAT YOU NEED TO KNOW!

Wall Street: the beating heart of the financial world

Wall Street is a sacred term for many people in the financial world. It is often used to refer to the entirety of the American markets. However, there is much more to it.

Did you know for example that the name – like many other names in New York – has a Dutch origin? Below you can read much more information about this interesting business district.

What is Wall Street?

To start at the beginning: Wall Street is (of course) a street. This street can be found in New York, in the vibrant borough of Manhattan. For example, the New York Stock Exchange (NYSE) is located on this street, as well as the largest brokers and (business) banks that America has to offer. It is therefore not entirely strange that the street name is used as a collective name for all American financial markets together.

Want to read more facts about investing in US markets? Read our article: ‘ Investing in US markets ‘.

How did Wall Street come into being?

Time to delve into history. In 1653, the Dutch built a rampart to defend against the English. At the time, the Dutch were the boss and ruler of the so-called New Amsterdam. This is present-day New York. But where does the term Wall Street come from? The Dutch once called it ‘De Waal Straat’, because it was a defensive rampart. Incidentally, this rampart was demolished in 1699, but the name remained.

The English took over New Amsterdam and they have kept the name neatly. Of course they translated the name into English. De Waal Straat would henceforth be called Wall Street. Wall Street is and remains a piece of Dutch pride that can count on great fame worldwide. Look for example at the title of the film ‘The Wolf of Wall Street’ or at the well-known newspaper ‘The Wall Street Journal’.

The NYSE located on Wall Street

The operator of the New York Stock Exchange (NYSE) established its headquarters on Wall Street in 1817. Since then, the street has been a defining feature of America as a financial district. Many other institutions would follow.

An interesting side note is that the NYSE used to be a real trading floor. Here, various stock traders would physically meet to trade stocks in person. Nowadays, it is unfortunately a little less lively; everything is done via computer screens and online brokers . Furthermore, the NYSE is now the setting for many tourists who participate in the guided tours that are given here.

Charging Bull

The Charging Bull has become the symbol of Wall Street. It is, as it were, a mascot of a bull gilded in bronze. It once served as a symbol for a rising stock market. A bull market means a rising market. Who ever placed the bronze statue? In 1989, it was placed there out of nowhere without permission. The city of New York then removed it. However, the residents did not agree with this: they liked the statue and it had a nice symbolic value. So the city put it back anyway. A similar statue now also stands in Amsterdam, in front of Beursplein 5.

Federal Hall

Another characteristic aspect of Wall Street is the Federal Hall. This is where the first inauguration of the first president of the US, namely George Washington, once took place. It should be said that the government now takes place in the Pentagon in the capital. Nevertheless, the Federal Hall can still be visited.

Also criticism of Wall Street

Although Wall Street has a fine past and is a source of pride for many, it is also regularly in disrepute. This is partly due to the very high bonuses that are handed out here. Some people see it as a true ‘culture of greed’. In addition, Wall Street is held responsible for the origin of the credit crisis in 2008. Customers were talked into various risky products so that the banks would make more profit. The world is still struggling with a reduced confidence in large financial institutions and governments due to this damaging credit crisis. However, this should not spoil the charm.

Investing via a trading platform

Would you like to start investing yourself? Then you need a trading platform where you can execute orders. Online brokers offer you such a trading platform. These differ greatly from each other. Use our comparator and  compare brokers .

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