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Discuss the differences between The Stock Exchange described in Stringham’s article and stock exchanges as we...

Discuss the differences between The Stock Exchange described in Stringham’s article and stock exchanges as we know them today. While the differences may be obvious, are there any similarities between the two or their evolutions?

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Answer #1

Differences:

Originally, stock exchanges were private in their membership. Today, membership is open to the public.

Stock exchanges were self-regulated based on the consent of the members. Today, stock markets are heavily regulated by the state. Stock exchanges also frame rules for governance and procedure.

Stock exchanges were opened in coffee houses originally as there was no space to trade. Over the course of time, stock exchanges were established with floor-space and now trading can also be done online.

Defaulters were publicly shamed in the past by displaying their names in the hopes that they would not default in the future. Today, defaulters can be prosecuted, fined and punished.

Broking was also considered to be a side-business and not a main activity. Today, broking is a multi-million-dollar industry.

Similarities:

Stock exchanges are even today places where price is set by the meeting of minds of sellers and buyers as to price. Volume of trade may have grown exponentially but the fundamentals still remain the same.

A variety of traders still consider trading as an on the side activity rather than a full-time career.

The practice of broking is still restricted and the government still sets rules for the licensing of brokers.

Defaulters can still be shamed through the news and print media.

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