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( Buttonwood Agreement)
The Buttonwood Agreement, which took place on May 17, 1792, started the New York Stock & Exchange Board (now called the NYSE, which is short for New York Stock Exchange). This agreement was signed by twenty-four stock brokers outside of 68 Wall Street in New York under a buttonwood tree. The organization drafted its constitution on March 8th, 1817, and named itself the "New York Stock & Exchange Board". In 1863, this name was shortened to its modern form, "New York Stock Exchange". Membership on the NYSE has been held as a valuable property since 1868. Until recently, members could only join by purchasing existing seats, which were limited to a total of 1,366. In April of 2006, the NYSE went both electronic and public, by merging with the already publicly traded Archipelago electronic stock exchange. The new merged company is called the NYSE Group, Inc., and the seats of the NYSE translated into shares of stock which are now traded under the ticker symbol NYX. In brief, the agreement had two provisions 1) the brokers were to deal only with each other. Thereby eliminating the auctioneers, and 2) the commissions were to be .25%. It reads as follows The twenty-four brokers (also known as, Founding and Subsequent Fathers) who signed the Buttonwood Agreement were (including business location[2]). The Buttonwood Agreement is honored by the name of the financial markets column in The Economist.
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