Today In History: November 28, 1914: New York Stock Exchange resumes bond trading On this day in 1914, the New York Stock Exchange (NYSE) reopens for bond trading after nearly four months, the longest stoppage in the exchanges history. The outbreak of World War I in Europe forced the NYSE to shut its doors on July 31, 1914, after large numbers of foreign investors began selling their holdings in hopes of raising money for the war effort. All of the worlds financial markets followed suit and closed their doors by August 1. By the end of November, however, American officials had decided to reopen the NYSE because it was thought that bond trading, albeit with a set of restrictions designed to safeguard the American economy, could help prevent the financial ruin of the belligerent countries by raising money for the war effort. Trading of stocks didnt resume until December 12, 1914, when the Dow Jones Industrial Average (DJIA)--the most important of various stock indices used to gauge market performance--suffered its worst percentage drop (24.39 percent) since it was first published in 1896. This precipitous fall underlined the risky nature of business during the first months of the war, when nobody knew exactly how long the conflict would last or exactly what role the then-neutral U.S. would eventually end up playing.
Posted on: Fri, 28 Nov 2014 10:08:10 +0000
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