The Curb Stock Exchange Crash on October 29 1929
The Curb Market, later the Curb Exchange, sold stocks that did not meet the requirements of the New York Stock Exchange, and for half a century they were indeed traded on the curb, that is, through a network of brokers actually out on the streets.
Established in the mid-19th century and completely unregulated in its earliest years, the Curb Market was fertile ground for shady operations, where mining and other stocks were introduced and bid up through false sales, and then dumped when the originators had taken their profits.
The New York Exchange Board had then mandated an organization to have a minimum of 100 stocks in order to trade in their exchange. Many of these new companies could not meet such requirements to be listed on the Board.
These brokers came to be known as the Curbstone Brokers, as they conducted their auctions out in the street. Curb Brokers often traded stocks that were speculative in nature. With the discovery of oil in the later half of 19th century, even oil stocks entered into the curb market.
NYSE Amex Equities, formerly known as the American Stock Exchange (AMEX) is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange.
Two Curb Exchange stocks which outperformed the market throughout 1929 and after the 1929 crash which ended the year with gains were “United Light and Power B” which gained (Percent change: +189% ) along with “Standard Power and Light” which gained (Percent change: +160% ).
Popular “Curb Stocks“ trading during the October 29, 1929 stock market crash included companies such as Goldman Sachs which closed at $35.125 (Down: $24.875 and Trans-America which closed at $38.875 (Down: $23.625) on the day.
Tags: American Stock Exchange, AMEX, Brokers, Curb Exchange, Curb Market, Curb Stocks, Curbstone Brokers, Goldman Sachs, New York Curb Exchange, New York Exchange Board, NYSE Amex Equities, October 29 1929, Shady Operations, Standard Power and Light, Trans-America, United Light and Power B