Two dozen merchants and brokers established the New York Stock Exchange on May 17, 1792. In good weather they operated under a buttonwood tree on Wall Street. In bad weather they moved inside to a coffeehouse to conduct business.
Previously securities exchange had been intermediated by the auctioneers who also conducted more mundane auctions of commodities such as wheat and tobacco. On May 17, 1792 twenty four brokers signed the Buttonwood Agreement; the agreement had two provisions:
1) the brokers were to deal only with each other, thereby eliminating the auctioneers, and
2) the commissions were to be 0.25%.
The earliest securities traded were mostly governmental securities such as War Bonds from the Revolutionary War and First Bank of the United States stock. In 1817 the stockbrokers of New York operating under the Buttonwood Agreement instituted new reforms and reorganized. After re-forming as the New York Stock and Exchange Board the broker organization began renting out space exclusively for securities trading, which previously had been taking place at the Tontine Coffee House. Several locations were used between 1817 and 1865, when the present location was adopted.
The location of the stock market, a building on Wall Street, is shorthand for referring to the entire financial system. There are varying accounts about how the Dutch-named “de Waalstraat” got its name. A generally accepted version is that the name of the street was derived from a wall (actually a wooden palisade) on the northern boundary of the New Amsterdam settlement, built to protect against Native Americans, pirates, and the British. When the British did take control of New Amsterdam and it became New York, the New York City Common Council made Wall Street the city’s first official slave market for the sale and rental of enslaved Africans and Indians in 1711. The slave market operated from 1711 to 1762 at the corner of Wall and Pearl Streets. It was a wooden structure with a roof and open sides, although walls may have been added over the years and could hold approximately 50 men. The city directly benefited from the sale of slaves by implementing taxes on every person who was bought and sold there.
Much of Wall Street itself is owned by Trinity Church; the land along the northern wall of the fort was a gift from Queen Anne to the parish.