First Fidelity Guarantee a certificate of deposit brokerage firm that is proficient in facilitating the placement of deposits of third parties with FDIC insured depository institutions, is explaining the Wall Street, the trading hub of the world’s biggest economy.
First Fidelity Guarantee explains that Wall Street is actually a street in New York City, located at the southern tip of Manhattan. Wall Street is a symbol for the financial sector and the companies that make up that sector, but figuratively, it also means much more. This connotation stems from the historical prevalence of brokerages and investment banks who built headquarters on or near the street to be close to the New York Stock Exchange (NYSE).
The word “Wall Street” still refers to business—the investment business—and the interests, motives, and attitudes of its participants, even though being on Wall Street is no longer required for a financial industry firm to operate (many are really spread out across the country).
Understanding Wall Street
Although a number of financial institutions continue to have their headquarters in Wall Street and the neighborhood around it in southern Manhattan, known to locals as “the Financial District,” the globalization and digitization of finance and investment have resulted in the establishment of numerous American broker-dealers, registered investment advisors, and investment companies across the nation.
First Fidelity Guarantee notes that the term “Wall Street” is still used to refer to the stock exchanges, commercial and investment banks, brokerages and broker-dealers, financial services companies, and underwriting firms as well as the financial markets, businesses that trade openly, and investing community itself. It is a widely used expression that represents the American investment market and, to some extent, the American financial system. The Federal Reserve Bank of New York, perhaps the most significant regional bank of the Federal Reserve System, and the New York Stock Exchange, the largest equity-based exchange in the world, are both headquartered in the Wall Street neighborhood.
The phrase “Wall Street” is frequently abbreviated to “the Street” by those in the finance and media industries. An analyst might, for instance, compare a company’s revenues to what the Street anticipated when reporting a company’s results. In this instance, the analyst is contrasting the company’s results with the projections made by financial analysts and investment firms for that time frame.
History of Wall Street
Wall Street got its name from the wooden wall Dutch colonists built in lower Manhattan in 1653 to defend themselves from the British and Native Americans. The wall was taken down in 1699, but the name stuck. Wall Street has been the historic headquarters of some of the largest U.S. brokerages and investment banks and is also the home of the New York Stock Exchange.
Wall Street is often contrasted with Main Street, a metaphor for small businesses and companies, and individual investors and employees. Events that happened on or around Wall Street often have impacted not just the investment industry, but the U.S. (and even the global) economy.
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