During America’s War of Independence against the British Crown, the provisional colonial government—in need of funds to finance the ongoing struggle—sold bonds to the public. Attached to the bonds was a pledge of not only repayment of their principles, but a return of profit as well. At around this same time, private banking institutions commenced the practice of selling shares of their companies, as well as stock offerings to raise capital.

Several years later in 1792, during George Washington’s administration, a highly select group of very wealthy merchants founded the New York Stock Exchange (NYSE). The businessmen inaugurated a custom of assembling daily to trade stocks and bonds, which continues to this day.
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