A History of ChangingStock Market Technology

Joanna G. MullallyCOM 546: Evolutions

May 20, 2011

By the end of the 19th century, there were thousands of above-ground telegraph and telephone wires connected to the New York Stock Exchange.

Photo from the Cornell University Library

Why did this gap happen?

Photos from the National Archief & Oregon State University Achieves

In 1971, a group of brokerages pooled their resources to develop a computerized quotation and trading system for the over-the-counter market. Called the NASDAQ, for the first time investors could see prices posted on both the NYSE and the ‘OTC’ exchanges and make rapid, automated trades.

Photo from San Diego Space & Space Museum Achieves

“There might come a time where computer worshippers get a rude comeuppance when they realize that the phenomena of large block trading and its effect on market movements could have significant consequences.”

~ Marshall E. Blume

Photo from US National Achieve

Do you think the

stock market will

have another 100-year

disruptive innovation

gap?

Why or why not?

Photo from Library of Congress

Thanks for Listening!

Content Based On:•Blume, M.; Siegel, J. & Rottenberg, D. (1993). Revolution on Wall Street. New York: W.W. Norton & Company, pp. 167-187

•Thomas, D. (1989). The Plungers and the Peacocks: An Update of the Classic History of the Stock Market. New York: William Morrow & Company, p.349

•Dalton, J. (2001). How the Stock Market Works. New York: New York Institute of Finance, pp.151-269

Photo Credits:•Photo from the Cornell University Library. Retrieved on May 20, 2011 from http://www.flickr.com/photos/cornelluniversitylibrary/3678915312/•Photo from the National Archief. Retrieved on May 20, 2011 from http://www.flickr.com/photos/nationaalarchief/5372590938/•Photo from Oregon State University Achieves. Retrieved on May 20, 2011 from http://www.flickr.com/photos/osucommons/3226142873/sizes/m/in/photostream/•Photo from San Diego Space & Space Museum Achieves. Retrieved on May 20, 2011 from http://www.flickr.com/photos/sdasmarchives/5018420677/•Photo from Library of Congress. Retrieved on May 20, 2011 from http://www.flickr.com/photos/library_of_congress/3102056181/•Photo from US National Achieve. Retrieved on May 20, 2011 from http://www.flickr.com/photos/usnationalarchives/3953395438/

Creative Commons:•Attribution, Non-Commercial•Joanna Mullally: University of Washington