Whether you’re a beginner or a seasoned investor, chances are there’s stock market trivia you haven’t heard before.
The stock market has long been the go-to option for investing and increasing wealth. Here are some interesting facts about the stock market you should know.
What to know about the stock market
Before you invest in the stock market, you should know that stocks represent a share of ownership in a company. This means you own a small part of the company you invest in. The stock value goes up and down based on the company’s actual and predicted performance, demand from buyers and so on. A diversified portfolio with stocks from several different companies and industries is recommended to lower your financial risk when investing.
1. The stock market concept is more than 400 years old
Stock markets are actually older than the United States itself. The Amsterdam Stock Exchange was created in 16021 to sell paper shares to help fund the Eighty Years’ War between the Dutch Republic and the Spanish Empire. This stock market still exists today as the Euronext stock exchange.
2. The New York Stock Exchange is over 200 years old
Though not as old as its European counterpart, the New York Stock Exchange is pretty old, too! The signing of the Buttonwood Agreement on May 17, 1792, is the founding date2 for the NYSE. In its earliest days, stock trading was done in coffee houses rather than in a specific building.
3. The original Dow Jones index had just 12 companies
The Dow Jones Industrial Average is one of the most widely tracked stock indexes in the world. When it first formed, it had only twelve companies3, such as the American Cotton Oil Company and the Distilling and Cattle Feeding Company. Of the original twelve, only General Electric (GE) is still part of the Dow Jones today.
4. Berkshire Hathaway is the most expensive stock in the world
As of this writing, Berkshire Hathaway is valued at roughly $694,000 for a single class A share, making it the most expensive stock in the world. Originally a textile company, Berkshire Hathaway has evolved into a major holding company under the leadership of billionaire Warren Buffett.
5. September is the worst month to invest
The stock market generally goes up over time, but September has historically been the worst month to invest. Based on data from 2005 to 2024, the NYSE, S&P 500 and Nasdaq 100 are all more likely to close lower4 than they opened in September than in any other month.
6. July is the best month for stock growth
Just in time for your summer vacation, July is historically the best month for stock market growth. Between 2005 and 2024, July almost always saw the markets close higher than they opened. The S&P 500 and NYSE actually closed higher at the end of July 100% of the time between 2015 and 2024.
7. The biggest percentage loss didn’t happen in 1929
The Wall Street crash of 1929 is the most famous period of losses in stock market history, partly because these losses occurred continuously over several weeks. However, the single biggest-day loss was “Black Monday,” which occurred on Oct. 19, 1987, when the Dow Jones lost 22.61% of its total value.
8. The Emergency Banking Act caused the largest ever percentage gain
The Emergency Banking Act of March 1933 was designed to restore Americans’ trust in banks and the stock market after the Great Depression. As a result, March 15, 1933, saw the biggest-ever single-day percentage gain in stock market history – a whopping 15.34% for the Dow Jones.
9. 2020 saw the largest daily point losses — and the largest gains
The COVID-19 pandemic caused a lot of market ups and downs in 2020. The six highest daily point losses5 for the Dow Jones all occurred in 2020 – but so did five of the top six highest daily point gains. In fact, the second highest day of losses (March 12, 2020) was immediately followed by the second-highest day of gains (March 13, 2020) — a great example of the market’s ability to rebound.
10. The terms ‘bear’ and ‘bull’ market refer to animal fighting styles
Among the stock market facts every investor should know are what bear and bull markets refer to. These terms are believed to come from how the animals fight. A bear swipes down with its claws, so a bear market refers to when the market is losing value. A bull lifts with its horns, so a bull market is when the market is on the rise.
11. 62% of Americans invest in the stock market
How many people invest in the stock market? As of 2024, Gallup reports that 62% of Americans6 – over 160 million people – invest in the stock market. Percentage-wise, the all-time high came in 2004, when 63% of Americans owned stocks.
12. The NYSE was the first building in North America to have air conditioning
When it was built in 1903, the NYSE building used three ammonia absorption machines to provide air conditioning. This made it the first building in North America to have any type of air conditioning system.
13. The NYSE celebrated its 100th Christmas Tree lighting in 2023
First held in 1923, the NYSE Annual Tree Lighting7 has become a city staple, featuring live musical performances and participation from many companies and charities. The tree lighting occurs each year in early December.
14. Computers were introduced to the NYSE in 1966
Long before computers became a part of practically every business, the NYSE switched to an automated computer trading system on December 20, 19668. These early IBM computers were a far cry from what we use today, but they did help improve the efficiency of stock market trades.
15. The NYSE has had 68 presidents
The New York Stock Exchange has had 68 presidents oversee it, beginning with Anthony Stockholm in 1817. Stacey Cunningham became the first female president in 2018, and Lynn Martin has been president since 2022.
16. A little more than half of days are ‘positive’
Since 1980, 53.3% of trading days9 have resulted in positive gains for the stock market as a whole. Despite this, the index’s total value has grown by over 4,490% during that same time.
17. The average annual stock market return is 10%
While the exact amount can vary yearly, the stock market has typically seen an average annual return of 10%10. This means that holding onto your investments for the long haul will typically deliver greater returns than if you left the same amount of money in a savings or checking account.
18. Stock market closures are rare
Other than weekends and holidays, stock market closures are extremely rare. The NYSE closed for four months during World War I, as well as a few days following 9/11 and Hurricane Sandy. Otherwise, the market has remained open in some capacity — even after the attack on Pearl Harbor. During the COVID-19 pandemic, the NYSE remained open by using fully electronic trading for two months11.
19. The U.S. is the world’s largest stock market
The value of all of the world’s stock markets is estimated to be around $130 trillion – and companies based in the U.S. make up 59% of that total value12. After the U.S., the largest stock markets are found in Japan, the United Kingdom, Canada and France. China is the largest “emerging” market.
20. Before 9/11, the NYSE was open to tourists
Tours of the building and trading room were offered before September 11, 2001. After the attacks, tours haven’t been available.
21. The NYSE facade has a name
The famous exterior facade of the NYSE is called “Integrity Protecting the Works of Man.”13 The sculpture depicts Integrity, as well as figures representing “works of man” in areas such as mechanical production, international trade and agriculture.
22. The NYSE has a longer-than-expected history with bitcoin
While bitcoin feels like a recent development, the NYSE has had its eye on cryptocurrency for some time. The NYSE actually filed to list bitcoin ETFs and futures in 201714, though ETFs weren’t officially listed and made available until 202415.
23. Big gaps in stock ownership remain
While most Americans invest in the stock market, total ownership varies widely between generations. According to the Federal Reserve16, Baby Boomers own 53.8% of stocks, followed by Gen X at 21.7% and the Silent Generation at 16.8%. Millennials own the least, with just 7.8% of stocks.
24. Stock ownership is usually tied to income
Generally speaking, the more money you make, the more likely you are to participate in the stock market. While 84% of households17 with an annual income of $100,000 or more own stocks, only 29% of households earning less than $40,000 own stocks. Stock ownership is also more likely among people with more education.
25. The stock market has 11 main sectors
The stock market is divided into 11 sectors to make it easier to compare and analyze publicly traded companies based on their industry and what they do for business. The 11 GICS stock market sectors are:
- 1.
Communication services
- 2.
Consumer discretionary
- 3.
Consumer staples
- 4.
Energy
- 5.
Financials
- 6.
Healthcare
- 7.
Industrials
- 8.
Information technology
- 9.
Materials
- 10.
Real estate
- 11.
Utilities
26. Communication services and technology saw the biggest returns in 2024
In the S&P 500, the communication services sector saw a return of 39.7%18 in 2024, closely followed by information technology at 37.6%. Consumer discretionary rounded out the top three at 29.5%.
27. Healthcare and materials were the worst performers in 2024
The materials sector in the S&P 500 actually saw a negative 1.2% return in 2024. The other bottom performers were healthcare and energy, with positive returns of just 1.1% and 1.9%.
28. Stocks are the most popular type of investment
Stocks remain the most popular investment option in the stock market. Forty-eight percent19 of Americans hold stocks, compared to 43% for cryptocurrencies and 41% for mutual funds.
29. Apple was the first company to top a $1 trillion market cap
Apple became the first company to exceed a market cap of $1 trillion in 2018, followed by Amazon and Microsoft. Today, NVIDIA, Alphabet (Google), Meta (Facebook), Tesla and Broadcom have also joined the $1 trillion-plus20 market cap club.
30. There is a pirate stock exchange
There are 60 recognized stock exchanges in the world, but a pirate stock exchange was founded in Somalia in 2009. This unique stock exchange allowed local Somali residents to profit off the ransoms21 demanded by Somalian pirates.
Conclusion
We hope these interesting facts about the stock market will help you feel even more prepared as you start your own investing journey. Want to learn more about the stock market? Explore the comprehensive resources and tools on Moneywise.com to guide your financial journey with insights on buying stocks or alternative investments, managing taxes and more.
FAQs about the stock market
In addition to the above interesting facts about the stock market, here are some other common questions to consider.
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