Philadelphia Stock Exchange facts for kids
Quick facts for kids |
|
|
Philadelphia Stock Exchange Building
|
|
One of the former locations of The Philadelphia Stock Exchange at 1411 Walnut Street
|
|
 Location in Philadelphia
Location in Pennsylvania
Location in the United States
|
|
| Location | 1409–11 Walnut St., Philadelphia, Pennsylvania, U.S. |
|---|---|
| Built | 1911 |
| Architect | Horace Trumbauer |
| NRHP reference No. | 82003812 |
| Added to NRHP | August 31, 1982 |
The Philadelphia Stock Exchange (PHLX), now called Nasdaq PHLX, is a very important place in the history of money in the United States. It was the very first stock exchange ever started in the country. This makes it the oldest one still around!
A stock exchange is like a special marketplace where people can buy and sell parts of companies, called "stocks." They can also trade other financial things. The Philadelphia Stock Exchange is owned by a company called Nasdaq. Nasdaq bought it in 2007. The main office of the exchange is in Philadelphia, Pennsylvania.
The exchange began way back in 1790. It was first known as the Board of Brokers of Philadelphia. Sometimes people just called it the Philadelphia Board of Brokers. Later, in 1875, its name officially changed to the Philadelphia Stock Exchange.
Over the years, the exchange joined with other exchanges. In 1949, it merged with the Baltimore Stock Exchange. Then it was called the Philadelphia-Baltimore Stock Exchange. In 1954, it joined with the Washington Stock Exchange. This made its name even longer: the Philadelphia-Baltimore-Washington Stock Exchange, often shortened to PBW. In 1969, it also took over the Pittsburgh Stock Exchange.
Contents
History of the Philadelphia Stock Exchange
Early Years: The Board of Brokers (1790–1875)
The Philadelphia Stock Exchange has been around for more than 200 years! During this long time, it has had different names. It has also been located in many different buildings across Philadelphia.
It started in 1790 as the "Board of Brokers." Its first home was at the Merchants Coffee House. This building is now known as the City Tavern. It is located at the corner of Second and Walnut Streets.
In 1831, a bank called Stephen Girard’s Bank helped create a new company. This company built a new home for the Board of Brokers. In 1834, after a fire at the coffee house, the Board of Brokers moved. They moved into the Merchants Exchange Building. This building was at 3rd and Dock Streets.
On June 20, 1857, something unusual happened. The Board of Brokers of Philadelphia did not do any business that day. This was because they were having their yearly dinner!
By January 1, 1874, becoming a member of the Board of Brokers cost $1,000. There were 198 spots for members. If you wanted to buy a spot from someone else, it cost at least $2,000.
Becoming the Philadelphia Stock Exchange (1875–1949)
In 1875, the Board of Brokers officially changed its name. It became the Philadelphia Stock Exchange.
The exchange moved homes several times during these years. In 1876, it moved behind the Girard Bank Building. This building used to be the First Bank of the United States. The exchange stayed there until 1888.
From 1888 to 1902, the exchange was in the Drexel Building. This building was near Fifth Street and Chestnut. Between 1902 and 1912, the exchange moved back to the Merchants Exchange Building. In 1913, it moved to a building at 1411 Walnut Street. This building is now a famous historical place.
In 1951, the exchange moved to the Central Penn Bank Building. This was at 1401 Walnut Street. It stayed there until 1966. Then it moved to a brand new building. This building is now the Sofitel Hotel. It is at 17th and Sansom. A small street near this building was even renamed Stock Exchange Place.
In December 1968, Philadelphia faced money problems. The city put a small tax on stock trades. To avoid this tax, the exchange moved its trading floor. On January 2, 1969, it moved to an office building just outside the city. This building was in Bala Cynwyd. But in February, a court said the tax was illegal. So, the exchange moved its trading floor back to its main office in the city.
In 1981, the exchange moved again. This time it went to 19th and Market. It stayed there until 2017. Then it moved to its newest location. This is in the recently built FMC Tower.
Joining Forces: Mergers and Modern Times (1949–Present)
The Philadelphia Stock Exchange started joining with other exchanges in 1949. It merged with the Baltimore Stock Exchange. After this, it was called the Philadelphia-Baltimore Stock Exchange. The Baltimore Stock Exchange then moved its operations to Philadelphia.
In 1954, it merged with the Washington Stock Exchange. After these mergers, it was known as the Philadelphia-Baltimore-Washington Stock Exchange (PBW). In 1969, the exchange also took over the Pittsburgh Stock Exchange. It even kept a smaller trading floor in Pittsburgh until 1974.
In 2005, some big financial companies bought parts of the exchange. These companies included Morgan Stanley, Citigroup, and Merrill Lynch. They did this to protect themselves. They worried that other big exchanges, like the New York Stock Exchange and Nasdaq, were becoming too powerful. These companies together owned about 89% of the exchange.
In October 2007, a newspaper called The Wall Street Journal reported something big. The exchange was for sale! People thought it would sell for about $600 million.
On November 7, 2007, NASDAQ announced they would buy the PHLX. They agreed to pay $652 million. The deal was finished on July 24, 2008. This made Nasdaq PHLX the third-largest options market in the U.S.
On October 29, 2012, the stock exchange had to close for two days. This was because of Hurricane Sandy. The last time the exchange closed for two full days due to weather was in 1888.
As of 2014, the exchange helps trade many different things. It handles about 3,600 equity options. These are like contracts based on company stocks. It also handles 15 index options and many FX options. The PHLX handles more than 16% of all stock and ETF options traded in the United States.
In March 2020, the PHLX made a big change. Due to the COVID-19 pandemic, they decided to trade only electronically. This started on March 23, 2020. Along with the NYSE and the BSE, the PHLX reopened its physical trading floor on May 26, 2020.
Where the Exchange Has Been
The Philadelphia Stock Exchange has moved many times! Here are some of its past and present locations:
- 1790-1834 – Merchants Coffee House (City Tavern), 138 South 2nd Street at Walnut Street
- 1834-1876 – Merchants' Exchange Building, 143 South 3rd Streets at Dock Street
- 1876-1888 – Girard Bank Building, 120 South 3rd Street, between Walnut and Chestnut Streets
- 1888-1902 – Drexel Building, near Chestnut and South 5th Streets
- 1902-1912 – Merchants' Exchange Building, 143 South 3rd Streets at Dock Street
- 1913-1951 – 1411 Walnut Street, between South Broad and South 15th Streets
- 1951-1966 – Central Penn Bank Building, 1401 Walnut Street, between South Broad and South 15th Streets
- 1966-1981 – 120 South 17th Street, between Sansom Street and Stock Exchange Place (Ionic Street)
- Jan-Feb 1969 – Drecker Building, Bala Cynwyd, Pennsylvania (trading floor only)
- 1981-2017 – Market and South 19th Streets
- 2017-now – FMC Tower at Cira Centre South, 2929 Walnut Street, between Schuylkill Expressway and South 30th Street
Trading Hours
The exchange usually operates from 9:30 AM to 4:00 PM. It is open on most weekdays. It is closed on Saturdays, Sundays, and certain holidays. These holidays are announced by the exchange ahead of time.
See also
- Merchants' Exchange Building
- Philadelphia Bourse
- List of stock exchanges
- List of stock exchanges in the Americas
- List of stock exchange mergers in the Americas
