Stock Exchanges – Your Quick Guide
The first stock traders used to meet in Philadelphia in 1790 on what is now Wall Street. This center of the stock action moved to New York and in 1817 the New York Stock Exchange was established. A rival, the New York Curb Exchange, started meeting on the street across from the NYSE and eventually moved inside around 1921. Eventually, in 1953, they became the American Stock Exchange and began trading in international exchanges. They were soon acquired by the NYSE Euronext, the NYSE’s parent company, and then in 2008 they became the New York Stock Exchange Amex, showing exactly how far stock exchanges have come.
Naturally, there have been vast improvements in the stock market exchanges since that time. For example, international exchanges are common today, but originally it was a fairly limited area until it spread further and more and more foreign exchanges began to occur, opening up new possibilities for everyone involved in the market.
Along with all of the changes, additions and opportunities there also came new rules and regulations; one being that not all transactions must be completed at the actual stock exchanges, as some are done in business offices and even online. But, as one might expect, with these opportunities the Internal Revenue Service was one of the agencies coming up with some of those new rules and regulations. One such rule is the 1031 property exchange that basically allows property taxes to be deferred under certain conditions.
Most of the experts and traders agree that the section 1031 exchange can be very beneficial to investors, especially those who have some type of non-income producing property. A property may be exchanged for a different property that will not only produce a cash flow, but can also be used for income tax deductions, including depreciation, which you would not have had with your original property.
As with most everything, one of the major improvements, or changes, has to do with technology, as now there is quite a bit of trading being done electronically. Now the original stock exchanges, including the New York Stock Exchange are called traditional markets in order to distinguish them from the others, making it possible for a broker to trade from his office anywhere across the country.