The History of the Stock MarketThere was a time when "stocks of trading companies were rarely bought and sold because few companies were considered promising financial profits" (Blume 21). This is hard to believe given that almost everyone has invested in stocks today. The stock market has undergone distinct changes since its inception and has become a defining force in today's world. There is one idea that started the fire that created the stock market: capitalism. Everything the stock market is and was rooted in the fundamental idea of ​​capitalism. Without this idea, stocks and bonds would never have come into existence. Capitalism is an “economic system in which the means of production and distribution are owned by individuals or corporations and development is proportionate to the accumulation and reinvestment of profits made in a free market.” (Pierreson). When someone buys a stock, it means they own part of the company they invested in. The average person can thus invest in a public company and receive a share of the success or failure of that company. This process not only helps smart investors but also businesses. Investors' money has to go somewhere, and that place is the treasure of the company they backed (Simonson). The company then uses this money for its financial needs, providing income beyond just sales profits. Then, investors make or lose money based on the company's revenue. Basically, people invest in an idea and make money based on how that idea performs in the real world (Blume 35-39). While the stock market is based on capitalism, this type of business was shunned by the community in 1792 due to financial panic (Blum...... middle of paper ......inflation. This caused stocks to fall Real estate and fixed income became the main assets. Starting in the 1980s, the market enjoyed many years of prosperity, with the 1990s being the decade of greatest growth. However, none of this would have been possible without the lessons learned in the 1920s (Brown 90-107). . We caught the monopolies before they got too out of control, but we failed to stop the phenomenon. Small investors don't drive down the market (Sharp 210). to ensure we never make the same mistakes Wall Street made at the turn of the century. However, no one can predict the future with the rise of the new; types of stocks, online trading and faster and riskier trading, are we preparing for another fall?