New York Stock Exchange is the world’s largest Stock Exchange by market capitalization of its listed companies at USD 30.1 trillion as of February 2018. It was founded on 17th may 1792 in Wall Street, NYC.  NYSE is the largest equities- based exchange in the world. An equity market is a platform that allows companies to raise capital through different investors. It acts as a platform for both private stocks traded over the counter and public stocks listed on exchanges. How does the Stock Exchange work? The shares purchased by the investors allows the company to raise money to grow its business. These stocks can be bought and sold by the investors among themselves, and the exchange tracks the supply and demand of each listed stock. For a trade to occur the price needs to be increased by the buyer or the seller needs to decrease the same. The New York Stock exchange is also known as the “Big Board”. NYSE for many years has relied on floor trading using the open outcry system. Open outcry is a method for communicating trade orders in trading pits. This method is now replaced by faster and more accurate electronic order systems. An open outcry is when the signals and shouts are made in a particular manner and sequence which would then convey trading information, intentions and acceptance in the trading pits. This was the primary method of communicating trade orders and was fiercely competitive which made things highly efficient. Nevertheless, electronic trading has proved to be even more efficient. Though many NYSE trades have transitioned to electronic systems, floor traders are still used to set pricing and deal in high volume institutions trading. An exchange member who executes transactions from the floor of the exchange, exclusively for their own account is known as a floor trader. They used to use the open outcry method in the pit of a commodity or Stock Exchange, but now it is mostly replaced by the use of electronic trading systems. The beginning and end of the trading day is marked by the opening and closing bells of the exchange. The opening bell is rung at 9.30 am ET and the closing bell is rung at 4.00 pm ET. Company executives were invited by the NYSE during the opening and closing bells on a regular basis. The executives basically are from companies listed on the exchange, who sometimes coordinate their appearances with marketing events.

           Black Tuesday, October 29, 1929, hit Wall Street as investors traded 16 million shares on the New York Stock exchange in a single day. This resulted in the loss of billions of dollars and wiped-out thousands of investors. This is what pushed America and the rest of the industrialised world downward into the Great Depression (1929-39) which is known to be the deepest and longest lasting economic downturn. The roaring 20s (1920s) is when U.S. stock market underwent rapid expansion. By 1929, the production had already declined and unemployment had risen full, leaving stocks in great access of their real value. Factors such as low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated are responsible for the Great Crash. Stock prices began to decline in September and early October 1929. On October 24, Black Thursday, a record 12, 894, 650 shares were traded. On Monday, the market went into freefall. Black Monday, was followed by black Tuesday in which stock prices collapsed completely and 16, 410, 030 shares were traded on the New York Stock Exchange. Prices continued to drop as the United States collapsed into the Great Depression and by 1932 stocks were worthy only about 20% of their value. The stock market crash of 1929 was not the only cause of the Great Depression, but it did skyrocket the global economic collapse. By 1933, nearly half of America’s banks had slumped and unemployment was approaching 15 million people. The Wall Street crash of 1929 is also known as the Great crash. The main cause of the great crash was fear of excessive speculation by the Federal Reserve.

               The Great Depression also badly affected the Indian subcontinent which was then under British colonial rule. During the time period of 1929 to 1937, exports and imports in India fell drastically. Seaborne international trade in the region, the Indian railway and agricultural sectors were the most hit by the depression. There were riots and rebellions against colonial rule. The Great Depression worsened already deteriorating Indo-British relations. Some historians argue that the economic depression slowed down long-term industrial development in India. India provided large quantities of iron, steel and other materials for the manufacture of arms and armaments and India was one of the foremost suppliers of raw materials during the First World War. During the annual fiscal year 1928 to 1929, the total revenue for the Government of India was rupees 1,548 million. The total exports were valued at rupees 3, 390 million while imports were valued at 2, 630 million. India suffered extremely due to the Great Depression. The price declined from late 1929 to October 1931 was 36% compared to 27% in the UK and 26% in the US. What could have been done to prevent the Great Depression? Firstly, the regulation of mortgage brokers, who made the bad loans, and hedge funds, which used too much leverage. Secondly, early recognition that it was a credibility problem. The depression also had an impact on India’s freedom struggle. “The sources of a nations wealth are agriculture, commerce and manufacturers, and sound financial administration. British rule has given India peace. But British administration has not promoted or widened these sources of national wealth in India.”- Romesh Chunder Dutt.

                         Due to the Great crash prime securities toppled like the issues of bogus gold mines. General Electric fell from 396 on September 3 to 210 on October 29. American telephone and Telegraph dropped 100 points. Dupont fell from a summer high of 217 to 80, and US steal from 261 to 166, Delaware and Hudson from 224 to 141, and radio corporation of America (RCA) common stock from 505 to 26. The other areas affected by the Great Depression in India are international trade, impact on the railways, dealing with home charges. The imports decreased by over 47% while the exports fell by over 49% between 1929 and 1932. Due to a decline in exports and imports and in the transportation of goods, the railway revenues decreased rapidly. Apart from existing imports and exports, there was also a particular amount of money which colonial India contributed towards administration, maintenance of the army, war expenses, and other expenses accrued by Britain towards maintenance of her colony, these were known as “home charges” and were paid for almost entirely by India. All this data clearly shows the level and intensity of the hardships faced by India because of the Great Crash. Due to the drastic collapse of international trade and therefore the little or no revenue obtained for it India could only pay off her home charges by selling off her gold reserves. From 1931- 1932 to 1934 – 35, India exported 2, 330 million worth of gold. The Great Depression was the results of an unlucky combination of factors- a flip-flopping Fed, protectionist impositions, and inconsistently applied government interventionist efforts. It could are shortened or maybe avoided by a change in anybody of those factors.

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