Wall Street name has a reference to the wall that was built by the Dutch in the southern part of Manhattan in the 17th century. The wall was built to bar the war between the Dutch and the English from reaching Manhattan (Geisst, 2004). The Dutch, to protect them, erected the wall to defend them. The wall never achieved the purpose and after its destruction in the later years, it achieved a legacy. The period in which the wall was erected was not important to the financial development in the history of the United States until the last period of the 18th century in which American brokers signed an agreement outlining the commission based on the trading securities. The signing led to the development of the investment community thus creating the New York Stock Exchange. From that development, the Wall Street today represents various financial institutions and the stock market.
Investment bankers are individuals working in a financial institution with the main aim of raising capital for the governments, corporations and various companies. Investment bankers may also comprise of individuals who tackle different works in the bank with the main aim of raising capital. Investment banker’s role in the Wall Street includes providing acquisition and merger advice on various transactions.
Some of the jobs in the Wall Street investment banks include chief risk officer, chief compliance officer, chief technology officer, and the prop traders. The chain of command for an investment banker includes analyst, associate, vice president, senior vice president, and the managing director. According to the chain of command, the investment bankers are obliged to follow the various codes of conduct stipulated in the different firms.
Wall Street is known for strengthening the American workers since it gives them job security and stability. Wall Street shapes the stock markets and employment. The firms, in this case, are the Nexus, which means that they are the fiscal consultants and the main source of proficiency to the important corporations in the US. Based on the public perception, Wall Street culture highlights finance, elitism, greed, and economics. Most of the Wall Street employees exhibit greed although they are justified based on the manner in which the system functions (Ponzio, 2010).
The major stock exchanges in the Wall Street include New York Stock Exchange (NYSE) and the Financial Industry Regulatory Authority formerly known as the NASDAQ. NYSE is the largest stock exchange in the world in terms of market capitalization. NYSE also known as the big board comprises of about 21 rooms in the Wall Street used for trade facilitation (Furgang, 2011). FINRA is a different kind of stock exchange because it does not have any physical space in the 11 Wall Street as it comprises of a network of computers that electronically execute a trade. The stock exchanges are important as they provide a marketplace for the buying and selling of corporate stocks in the global economy.
The stock market crash occurs due to economic factors that have a negative effect on the various businesses in the United States. Most of the businesses may end up being bankrupt as depicted by the crash of 2008-2009 because of the failure of the various financial institutions in the US. The whole world is affected when the stock markets encounter a financial crisis since they form one of the prime trading centers in the world.
Geisst, C. R. (2004). Wall Street: A history : from its beginnings to the fall of Enron. Oxford [u.a.: Oxford Univ. Press.
Furgang, K. (2011). How the stock market works. New York: Rosen Pub.
Ponzio, J. (2010). F Wall Street: Joe Ponzio's No-Nonsense Approach to Value Investing For the Rest of Us. Cincinnati: F+W Media.