The New Board was an organization of curb-stone

broker A broker is a person or firm who arranges transactions between a buyer and a seller 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 role should be confu ...

s established in 1836 in

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

to compete with the

New York Stock and Exchange Board The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed co ...

. 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 of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...

(NYSE), the New Board emerged in 1835 among the rough and tumble conditions of the very speculative

curb-side trading The phrase curbstone broker or curb-stone broker refers to a broker who conducts trading on the literal curbs of a financial district. Such brokers were prevalent in the 1800s and early 1900s, and the most famous curb market existed on Broad Stre ...

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 (North American English), or kerb (Commonwealth English except Canada; see spelling differences), is the edge where a raised sidewalk or road median/central reservation meets a street or other roadway. History Although curbs have ...

" 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 an eight-block-long street in the Financial District of Lower Manhattan in New York City. It runs between Broadway in the west to South Street and the East River in the east. The term "Wall Street" has become a metonym for t ...

board. ''Bloomberg'' writes that it formed "in response to an economic boom and the formation of the first railroad corporations." 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. To compete, the NYSE quickly began offering a second daily opportunity to buy or sell securities. 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. The New Board's brokers were "crushed" by the

Panic of 1837 The Panic of 1837 was a financial crisis in the United States that touched off a major depression, which lasted until the mid-1840s. Profits, prices, and wages went down, westward expansion was stalled, unemployment went up, and pessimism abound ...

and the recession that followed. The exchange then faded before folding in 1848.

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 {{US-finance-company-stub

History

Formation

Boom and decline

See also

References

External links