The history of stock markets or stock exchanges is long and complex, dating back to before the birth of America. The earliest records of stock markets date back to the 1600s, when they consisted primarily of spice trading and shipping. Stock markets as we know them today are obviously very different, and this is due to their vast ability to facilitate business around the world. The American stock market, which we will focus on, was adapted from the English stock market, which in the early years was the largest of all markets. Only when America gained independence was it considered a stock exchange in the new world. Since its inception, the American stock market has played a critical role in this country's success, while simultaneously causing unexpected and devastating problems for both the businesses involved and the country and world as a whole. An analysis of the stock market throughout history will reveal that the stock market can be dangerous and expensive for the country, but it is still an effective tool in helping businesses succeed. Before we get into it, let's first talk about what a stock market or stock exchange is and what it does for us. According to Investopedia.com the stock market is defined as “The market in which shares are issued and traded through stock exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy in how much it provides companies access to capital and investors an ownership stake in the company and the potential for earnings based on the company's future performance” ( Investopedia.com ). and why stock markets are important for companies. Actions are... at the heart of the paper... and more productive. So the idea is to use the stock market in a positive way, to avoid events like the Great Depression. This is not easy because sometimes accidents happen and there is nothing that can be done to avoid a catastrophe, but with constant evaluation this. kind of things are manageable and even preventable. As you will see, depressions and recessions will occur, but the stock market and businesses will adopt and try to prevent this from happening again. They do it because it's bad for them and it's bad for us, and nobody likes it when things go wrong. So, even though the stock market can be dangerous and expensive for the country, it is an effective tool for helping businesses succeed, which in turn helps us all.