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Securities - Business History of the Industry

Interesting Dates

September 16, 1920 - Horse-drawn wagon filled with explosives detonated near the subtreasury. Flames flooded Wall Street, shooting up nearly six-stories-high. The blast shattered windows around the area; 300 people were killed and a hundred more were wounded. The only famous financial figure to be injured was Junius Spencer, J.P. Morgan's grandson, who suffered a slight gash on one hand.

June 6, 1934 - President Franklin Roosevelt signed the Securities Exchange Act; set of regulations designed to rein in the stock swapping shenanigans and duplicitous sales tactics that had riddled the New York Stock Exchange (NYSE) and helped spark the Great Crash of 1929; registration requirements for all exchanges and curbing stock purchases by cash-strapped traders, the legislation created the Securities Exchange Commission (SEC).

December 30, 1970 - President Nixon signed The Securities Investor Protection Act of 1970; created Securities Investor Protection Corporation (SIPC), private nonprofit corporation to insure the securities and cash left with brokerage firms by investors against loss from financial difficulties or failure of such firms; first line of defense in the event a brokerage firm fails owing customers cash and securities that are missing from customer accounts.

2006 (First Quarter) - Bureau of Labor Statistics data indicated average weekly pay for financial sector jobs in Manhattan was $8,323, up more than $3,000 per week in three years; 280,000 workers in financial sector collect more than half of all wages paid in Manhattan, hold less than 1/6 of 1.8 million jobs in the borough; New York City's dependence on Wall Street grows; unequal distribution of income gains squeezing middle class.

March 2, 2007 - The Director of the National Park Service announced the Wall Street Historic District (all or part of 36 blocks in lower Manhattan), roughly bounded by Cedar St. and Maiden's Lane, Pearl St., Bridge and S. William St., and Greenwich St. and Trinity Pl., had been added to the National Register of Historic Places (the nation's official list of cultural resources worthy of preservation); area contains 65 historic buildings and sites (21 had previously been listed individually in national register, 29 had been designated as landmarks by the NYC Landmarks Preservation Commission); new buildings added include the New York Stock Exchange, Federal Hall, Trinity Church, U.S. Custom House , American Bank Note Building and the Equitable Building.

2008 - Employment in Securities Industry

(Returns), Roger G. Ibbotson, Rex A. Sinquefield (1989). Stocks, Bonds, Bills, and Inflation: Historical Returns (1926-1987). (Homewood, IL: Dow Jones-Irwin, 202 p.). Stocks--Prices--United States; Securities--Prices--United States; Stock price forecasting.

(Returns), Elroy Dimson, Paul Marsh, Mike Staunton (2001). Triumph of the Optimists: 101 Years of Global Investment Returns. (Princeton, NJ: Princeton University Press, 399 p.). London Business School. More data, extending farther back in time and covering more countries than CRSP (Center for Research in Securities Prices) - annual real and nominal returns on equities, bonds, and bills, as well as GDP, inflation, and exchange rate data, over 101 years (1900-2000) for sixteen countries in North American and Europe plus Australia, South Africa, and Japan (Australia, Belgium, Canada, Denmark, France, Germany, Ireland, Italy, Japan, Netherlands, South Africa, Spain, Sweden, Switzerland, United Kingdom, and United States).

Daniel M. Abramson (2001). Skyscraper Rivals: The AIG Building and the Architecture of Wall Street. (New York, NY: Princeton Architectural Press, 207 p.). AIG Building (New York, N.Y.); 40 Wall Street (New York, N.Y.); One Wall Street (New York, N.Y. : 1931- ); 20 Exchange Place (New York, N.Y.); Skyscrapers--New York (State)--New York; Art deco (Architecture)--New York (State)--New York; Wall Street (New York, N.Y.)--History--20th century; New York (N.Y.)--Buildings, structures, etc. Architecture of Wall Street between wars through an amazing array of contemporary and archival images and an informed discussion of financial, geographical, historical forces that shaped this district.

Peter L. Bernstein (1992). Capital Ideas: The Improbable Origins of Modern Wall Street. (New York, NY: Free Press, 340 p.). Finance; Wall Street. Breakthrough financial theories of small group of academics laid intellectual groundwork for many  innovations, new products, strategies which revolutionized world of finance.

--- (2007). Capital Ideas Evolving: The Improbable Origins of Modern Wall Street. (Hoboken, NJ: Wiley, 288 p.). Finance; Investments. History of modern investment theory, history of modern financial innovation. Financial theories now: 1) shape underlying structure of portfolio management, market behavior, 2) spark important innovations (portable alpha, fresh insights into risk/return trade-off); positive consequences of interactions between theoretical critics and investment practitioners.

Murray T. Bloom (1971). Rogues to Riches; The Trouble with Wall Street. (New York, NY: Putnam, 332 p.). Wall Street.

John Brooks (1961). The Seven Fat Years : Chronicles of Wall Street. (Garden City, NY: Doubleday, 238 p. [orig. pub. 1958]). Finance--United States--History; Stock exchanges--United States.

David Colbert (2001). Eyewitness to Wall Street: 400 Years of Dreamers, Schemers, Busts, and Booms. (New York, NY: Broadway Books, 391 p.). Wall Street; Capitalists and financiers -- United States -- History; Securities -- United States -- History; Finance -- United States -- History.

Charles A. Conant (1968). Wall Street and the Country, a Study of Recent Financial Tendencies. (New York, NY: Greenwood Press, 247 p. [orig. pub. 1904]). Trust companies; Trusts, Industrial; Currency question -- China; United States -- Commerce; Economic history; Stock exchanges.

Steve Fraser (2005). Every Man a Speculator: History of Wall Street in American Life. (New York, NY: HarperCollins, 752 p.). Wall Street--History; Stock exchanges; Stocks; Securities.

--- (2008). Wall Street: America’s Dream Palace. (New Haven, NY: Yale University Press, 200 p.). Senior Lecturer (University of Pennsylvania), Co-Founder of the American Empire Project, Metropolitan Books. Capitalists and financiers--United States--Biography; Wall Street (New York, N.Y.)--History. America’s love-hate relationship with Wall Street; four iconic, recurring Wall Street types: 1) aristocrat, 2) confidence man, 3) hero, 4) immoralist;  how nation has wrestled, wrestles with fundamental questions of wealth and work, democracy and elitism, greed and salvation.

Martin S. Fridson (1998). It Was a Very Good Year: Extraordinary Moments in Stock Market History. (New York, NY: Wiley, 244 p.). Merrill Lynch Junk Bond Department. Investments--United States--History; Stocks--United States--History.

Robert Gambee (1990). Wall Street Christmas. (New York, NY: Norton, 272 p.). Christmas--New York (State)--New York; Stock exchanges--New York (State)--New York; Wall Street (New York, N.Y.)--Social life and customs; New York (N.Y.)--Social life and customs.

--- (1999). Wall Street: Financial Capital. (New York, NY: Norton, 272 p.). Wall Street (New York, N.Y.)--History--Pictorial works; Wall Street (New York, N.Y.)--History; Business enterprises--New York (State)--New York--History--Pictorial works; New York (N.Y.)--History--Pictorial works; New York (N.Y.)--Buildings, structures, etc.--Pictorial works.

Charles R. Geisst (1990). Visionary Capitalism: Financial Markets and the American Dream in the Twentieth Century. (New York, NY: Praeger, 191 p.). Capital market--United States--History--20th century; Finance--United States--History--20th century; Capitalism--United States--History--20th century.

--- (1997). Wall Street: A History. (New York, NY: Oxford University Press, 404 p.). Professor of Finance (Manhattan College School of Business). Wall Street--History.

--- (1999). 100 Years of Wall Street. (New York, NY: McGraw-Hill, 178 p.). Professor (Manhattan College). Wall Street (New York, N.Y.)--History--20th century. Author of "Wall Street: A History," takes a picturesque look at the history of Wall Street.

--- (2004). Wall Street: A History: From Its Beginnings to the Fall of Enron. (New York, NY: Oxford University Press, 438 p. [rev. and exp. ed.]). Professor of Finance (Manhattan College School of Business). New York Stock Exchange; Wall Street--History. 

---  (2005). Undue Influence: How the Wall Street Elite Put the Financial System at Risk. (Hoboken, NJ: Wiley, 314 p.). Professor of Economics and Finance (Manhattan College). Stock exchanges--United States; Stock exchanges--Law and legislation--United States; Securities industry--Deregulation--United States; Financial crises--United States. 

John Steele Gordon (1999). The Great Game: The Emergence of Wall Street as a World Power, 1653-2000. (New York, NY: Scribner, 319 p.). Wall Street--History; Securities--United States--History; Investments--United States--History.

Harland W. Hoisington, Sr. (1972). Wall Street, 1920-1970; Five Fabulous Decades. (New York, NY: Vantage Press, 207 p.). Wall Street.

Sidney Homer and Richard E. Sylla (1996). The History of Interest Rates. (New Brunswick, NJ: Rutgers University Press, 3rd ed., rev.; 688 p.). Academics (NYU). Interest Rates, Credit. Classic.

Jane Elizabeth Hughes, Scott B. MacDonald (2004). Carnival on Wall Street: Global Financial Markets in the 1990s. (New York, NY: Wiley, 258 p.). Capital market--History--20th century; International finance--History--20th century; Stock exchanges--History--20th century; Wall Street--History--20th century; Bull markets--United States--History--20th century; Stock Market Bubble, 1995-2000; Financial crises--East Asia--History--20th century; Globalization--Economic aspects--History--20th century. 

Leonard L. Levinson (1961). Wall Street; A Pictorial History. (New York, NY: Ziff-Davis, 376 p.). New York (N.Y.)--Streets--Wall street; Wall Street (New York, N.Y.); United States--Economic conditions.

Ralph G. Martin and Morton D. Srone (1960). Money, Money, Money; Wall Street in Words and Pictures. (Chicago, IL: Rand McNally, 221 p.). New York Stock Exchange; Finance--New York (State)--New York.

Ranald C. Michie (1992). The City of London: Continuity and Change, 1850-1990. (Basingstoke, Hampshire (UK): Macmillan Academic and Professional, 238 p.). Financial institutions--England--London--History; London (England)--History--1800-1950; London (England)--History--1951-.

Alexander Dana Noyes (1938). The Market Place; Reminiscences of a Financial Editor. (Boston, MA: Little, Brown, 384 p.). Finance -- United States -- History; United States -- Politics and government -- 1865- ; Journalists -- Biography.

Nomi Prins (2004). Other People's Money: The Corporate Mugging of America. (New York, NY: New Press, 342 p.). Former Managing Director (Goldman Sachs, Bear Stearns). Investment banking Moral and ethical aspects United States; Corporations Moral and ethical aspects United States; Corporations Corrupt practices United States; Stock Market Bubble, 1995-2000; Capital market United States History 20th century. 

Fred Schwed. Illustrated by Peter Arno (1940). Where Are the Customers' Yachts? or, A Good Hard Look at Wall Street. (New York, NY: Simon & Schuster, 215 p.). Wall Street; Investments; Speculation. Wall Street, 1927-1940.

Lois Severini (1983). The Architecture of Finance: Early Wall Street. (Ann Arbor, MI: UMI Research Press, 237 p.). Public buildings--New York (State)--New York; Financial institutions--New York (State)--New York--Buildings; Wall Street (New York, N.Y.)--History.

Robert M. Sharp (1989). The Lore and Legends of Wall Street. (Homewood, IL: Dow Jones-Irwin, 246 p.). Wall Street--History.

B. Mark Smith (2001). Toward Rational Exuberance: The Evolution of the Modern Stock Market. (New York, NY: Farrar, Straus and Giroux. Stock exchanges--United States; Stocks--United States. 

--- (2003). The Equity Culture: The Story of the Global Stock Market. (New York, NY: Farrar, Straus and Giroux, 344 p.). Stock exchanges; Stocks; Securities. 

Bob Tamarkin and Les Krantz (1999). The Art of the Market: Two Centuries of American Business as Seen Through Its Stock Certificates.(New York, NY: Stewart, Tabori & Chang, 176 p.). Award-winning Journalist, Respected Art Editor. Stock certificates--United States--History; Industries--United States--History.

Dana Lee Thomas (1967). The Plungers and trhe Peacocks: An Update of the Classic History of the Stock Market. (New York, NY: Morrow, 384 p.). Wall Street (New York, N.Y.) -- History.

Robert I. Warshow (1929). The Story of Wall Street. (New York, NY: Greenberg, 362 p.). Wall Street; Speculation; Capitalists and financiers--United States..).

Louise Yamada (1998). Market Magic: Riding the Greatest Bull Market of the Century (New York, NY: Wiley, 252 p.). Wall Street -- History -- 20th century; Stock exchanges -- United States -- History -- 20th century; Stock exchanges -- History -- 20th century; Economic history -- 1945-.

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Business History Links

The Funny Side of the Street            http://www.library.hbs.edu/hc/wsj/                                                       This exhibit features samples of the "Pepper...and Salt" cartoons that appeared in the Wall Street Journal starting in the 1950s. The cartoons are accompanied by brief essays about the business world and financial conditions of the decades in which they appeared. Also includes a brief history of the cartoon feature, a note on the feature from its founder, and a reading list. From the Baker Library at the Harvard Business School.

Hess Collection at University of Toledo http://www.cl.utoledo.edu/canaday/hess/introduction.html                 July 1987 - The Ward M. Canaday Center for Special Collections (University of Toledo) received the Hess Collection, a bequest of Dr. Nicholas Gimbel. Originally, these books were collected by Gimbel's father who was a partner in the New York brokerage firm Birdsall & Hess. Consists of books on the history of a variety of financial markets (stock, commodity, bond, etc.), fiction, biography, humor, and even works denouncing the stock market altogether. Perhaps the strongest area of concentration in this collection is made up of books on "technical analysis."

Museum of American Financial History  http://www.financialhistory.org/home.htm                                       The nation's only independent public museum dedicated to celebrating the spirit of entrepreneurship and the democratic free market tradition which have made America the financial capital of the world. Founded in 1988, the Museum was chartered as an educational institution. Today, the Museum is committed to helping all Americans look to the lessons of financial history, while taking charge of their own financial lives. The Museum showcases the history of Wall Street, the economic miracle of the markets, and the achievements of American businessmen and women from Alexander Hamilton's founding designs for a national economy, to the rise of "dot com" entrepreneurs in the global "new economy."

Securities and Exchange Commission Historical Society http://www.sechistorical.org/                                                               This Virtual Museum & Archive of the SEC and the Securities History (independent of and separate from the U.S. Securities and Exchange Commission) preserves and shares the history and historic records of the U.S. Securities and Exchange Commission and of the securities industry from the 1930s to the present. It includes a wide range of primary materials, including a timeline, papers, photos, oral histories and original programs broadcast from this site, which contribute to the understanding of how the SEC has shaped and continues to shape U.S. and international capital markets.


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