New Board
| Company type | Organization |
|---|---|
| Industry | Financial services |
| Founded | 1836 in New York City, United States |
| Defunct | 1848 |
| Headquarters | New York City , United States |
Area served | United States |
| Products | Stock exchange services (curb-stone brokerage) |
The New Board was an organization of curb-stone brokers established in 1836 in New York City with the purpose of challenging the dominance of the New York Stock and Exchange Board. Its operations concluded in 1848.
Formation
As the earliest local competitor to the New York Stock Exchange (NYSE), the New Board came into existence in 1835 during a period marked by speculative curb-side trading amid a declining market. This type of "curb" trading consisted of brokers and dealers conducting transactions directly on the street adjacent to the exchange. The New Board was born out of an unsuccessful effort by these brokers to integrate with the Wall Street board.
According to Bloomberg, it was established "in response to an economic boom and the formation of the first railroad corporations." Historian Robert Sobel characterizes it as the pioneer among several alternative trading entities in New York that surfaced during times of heavy trading activity, initially thriving but ultimately dissolving when market conditions turned less favorable.
Boom and decline
The New Board experienced early growth and expanded its presence while Wall Street's influence waned. To counter this competition, the NYSE implemented a second daily trading session. Although rivalry was intense at first, most members of the New Board faced bankruptcy within three years. Nevertheless, it maintained a larger membership than the older board until 1845. The brokers suffered greatly due to the Panic of 1837 and the ensuing economic downturn, which contributed to the decline of the exchange and its eventual shutdown in 1848.
See also
External links
- The NYSE’s Long History of Mergers and Rivalries, Bloomberg News, January 8, 2013