Talking about shares and investing can get boring sometimes. So we have compiled a list of the most amazing facts about the stock market and it’s history.
One. During Gil Amelio’s tenure as Apple CEO, Apple’s stock slumped and hit a 12-year low in 1997 that was at least partially caused by a single sale of 1.5 million shares of Apple stock by an anonymous party, who was later confirmed to be Steve Jobs. Jobs convinced the directors to oust Amelio in a boardroom coup and Jobs then became CEO.
Two. In 2005, an inexperienced trader at a Japanese bank tried to sell 1 share of J-Com stock for ¥640,000. He accidentally sold 640,000 shares for ¥1 each; the equivalent of selling $3 billion worth of shares for the price of $5,000.
Three. There is a ‘pirate stock exchange’ in Somalia where locals can invest in pirate gangs planning hijacking missions.
Four. The stock market got the names “bear and bull” because of caballeros (Spanish knights) in California. The caballeros put California grizzlies in battle with bulls. They observed bears swiped downward and bulls hooked upward, thus lending the analogy. This led to the California grizzly’s extinction.
Five. Ronald Wayne was the third cofounder of Apple, along with Steve Wozniak and Steve Jobs. In 1976, he sold his 10% share of the company for $800. Today, his 10% would have been worth of $35 billion.
Six. The Dutch East India Company was the first multinational corporation in existence, created in 1602. It is the first company to issue stocks and is the granddaddy of all corporations today. Shareholders didn’t have much influence – the company was controlled by its directors. However, shareholders were richly rewarded. The annual dividends were 16% on average over the first half of the 17th century.
Seven. The New York Stock Exchange is considered to be the most traditional as traders cannot enter the floor of the exchange if they are not wearing a suit and tie.
Eight. On average, the market performs the poorest in September. Since 1950, the Dow has declined 1.1% and the S&P 500 has declined 0.7% on average during the month of September. Since the Nasdaq was created in 1971, its composite index has fallen an average of 1% in September.
Nine. While you might think that London is a huge stock exchange center, the truth is that Shanghai is number two. The NYSE trades $1,520 billion of shares per month, while Shanghai trades $1,278 billion. The London Stock Exchange Group only trades $165 billion per month.
Ten. In 1954, economist Armen Alchian was able to figure out what the secret fuel was for the newly developed hydrogen bomb just by looking at the share prices of chemical suppliers on the stock market.
The return of the Dutch East India fleet, 1 May 1599.
Eleven. We all remember the .com boom and bust, and know about the 1929 Wall Street crash, but financial bubbles aren’t anything new. All the way back in 1711, the South Sea Company was at the heart of a huge bubble, which caused share prices to collapse by 1720. Even earlier, there was tulip mania – back in 1637, some tulip bulbs were selling at 10 times the annual income of a skilled labourer.
Twelve. The most expensive share on the New York Stock Exchange is
Berkshire Hathaway, which closed at
$71,000 at the end of 2000
$75,600 at the end of 2001
$72,750 at the end of 2002
$84,250 at the end of 2003
$87,900 at the end of 2004
$88,620 at the end of 2005.
Berkshire Hathaway, Warren Buffett’s company, currently sells for over $170,000 a share.
Thirteen. Internet bubble and global financial crisis (GFC) included, according to 2010 research by Credit Suisse, Australia has had the best performing share market in the world from 1900 to 2009.
Australia posted 7.5% after-inflation returns per year during that time, making those returns the highest (with volatility the second lowest) of the 19 major markets the researchers studied.
Fourteen. From 1980 to 2010, $10,000 would be worth…
* $234,319 in Australian shares, a return of 11.1% per annum.
* $145,040 in cash, a return of 9.3% per annum
* $36,383 in the Consumer Price Index (CPI), a return of 4.4% per annum.
We hope you’ve enjoyed these fun facts about the stock market, but please keep in mind that investing wisely should take into account the advice of professionals.
If you have questions about the share market, investing or any other financial matter, please contact us.