Wall Street is made up of the largest stock exchanges, the largest financial firms, and employs thousands of people. As the commercial center of the largest economy in the world, Wall Street has a lasting impact not only on the U.S. economy, but also on the global economy. The United States is the largest economy in the world, and New York City is its financial center.
As Wall Street is synonymous with the New York financial sector and, to a certain extent, with the US financial sector, its global importance is unparalleled. From an economic perspective, the results of the real economy and investment are interconnected most of the time. The growth of the real economy stimulates the capital market. When the capital market recovers, investors are motivated by high returns and are more willing to invest or lend.
In addition, it supports real economic companies. On the contrary, an economic downturn reduces Wall Street's performance. Reluctance to invest leads to a negative spiral. Growing up, several other major exchanges established their headquarters in the Wall Street area, such as the New York Mercantile Exchange, the New York Board of Trade, the New York Futures Exchange (NYFE) and the United States Stock Exchange, now known as NYSE American Options.
Wall Street speculators tend to be professional traders, unlike retail investors who buy and hold stocks or other assets for the long term. Just because Wall Street poses a less immediate threat to the rest of us doesn't mean that it's changed its ways permanently. Mortgage lenders, thinking that they could always sell the loans they granted to Wall Street firms and bundle them into mortgage bonds, provided credit to just about anyone. The main beneficiaries, by far, of the recent tax law were the big Wall Street banks, especially Wells Fargo.
While being on Wall Street is no longer mandatory for a company in the financial sector (many, in fact, are located across the country) or even for trading stocks (which is mainly happening online now), the term Wall Street still means businesses, the investment business and the interests, motivations and attitudes of its actors. On July 8, 1889, Charles Dow, Edward Jones and Charles Bergstresser launched The Wall Street Journal, a four-page evening newspaper dedicated to objective financial and business news. Main Street firms provide financial planning and investment advice to local people or small businesses. The business of issuing securities used to be the exclusive domain of Wall Street firms, such as Morgan Stanley and Goldman Sachs, but over the past twenty years, many of the dividing lines between ordinary banks and investment banks have faded.
Events on or around Wall Street have often affected not only the investment industry, but also the United States. An adjacent annex, built in 1922, is located at 11 Wall Street, and another subsidiary building is at 20 Broad Street. Now that Morgan Stanley and Goldman Sachs, the last two remaining large independent Wall Street firms, have become bank holding companies, a legal change that placed them under the regulatory authority of the Federal Reserve, Mack insists that there is adequate oversight. However, the insidious culture that allowed Wall Street firms to sell doubtful securities to pension funds and charitable foundations is still largely in place.
Just two years after Wall Street's recklessness brought the global economy to the brink of collapse, the vision of a major Wall Street figure talking about responsible finance may be suspicious. As a result of the discrepancy in size, net worth and financial knowledge, there are conflicts between Main Street and Wall Street. .