The New Board was an organization of curb-stone
broker
A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither ...
s established in 1836 in
New York City
New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
to compete with the
New York Stock and Exchange Board. It folded in 1848.
History
Formation
The first local rival of the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...
(NYSE), the New Board emerged in 1835
[ among the rough and tumble conditions of the very speculative curb-side trading during the down-turn in the market in general.][Sloane, Leonard 1980 ''The Anatomy of the Floor'', Doubleday: Garden City, New York, p. 22.] The "curb
A curb (American English) or kerb (British English) is the edge where a raised sidewalk/pavement or road median/central reservation meets a street/other roadway.
History
Although curbs have been used throughout modern history, and indeed ...
" or "outside" trading the exchange used was a system in which "brokers and dealers traded directly with each other in the street near the exchange."[ This board grew out of a failed attempt of these brokers to work with the ]Wall Street
Wall Street is a street in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It runs eight city blocks between Broadway (Manhattan), Broadway in the west and South Street (Manhattan), South Str ...
board.[ According to historian Robert Sobel, the New Board was the first of a number of alternative set-ups that occurred in New York trading during periods of high volume, succeeding at first, setting up rival organizations and then succumbing during ensuing less bullish times.]
Boom and decline
At first, the new organization was very successful, growing, while Wall Street was in a general decline.[ After its immediate success and strong rivalry, it declined, with most members going bankrupt within three years of its founding. Nevertheless, it remained larger than the older board until 1845.]Panic of 1837
The Panic of 1837 was a financial crisis in the United States that began a major depression (economics), depression which lasted until the mid-1840s. Profits, prices, and wages dropped, westward expansion was stalled, unemployment rose, and pes ...
and the recession that followed. The exchange then faded before folding in 1848.[
]
See also
*Regional stock exchange
A regional stock exchange is a term used in the United States to describe stock exchanges that operate outside of the country's main financial center in New York City. A regional stock exchange operates in the trading of listed and Over-the-count ...
*List of former stock exchanges in the Americas
This is a list of former stock exchanges in the Americas, including North America, South America, and the Caribbean Islands. Year of formation and the year the exchange was acquired, liquidated, or folded are also included. Some of these exchanges ...
References
External links
*
Defunct companies based in New York (state)
1836 establishments in New York (state)
American companies established in 1836
American companies disestablished in 1848
Former stock exchanges in the United States
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