The New York Stock Exchange (NYSE) traces its origins to the Buttonwood Agreement, signed by 24 stockbrokers and merchants on Wall Street in New York City. This landmark agreement was metaphorically initiated under a buttonwood tree, symbolizing the grassroots nature of the financial practices of the time. The brokers aimed to standardize the way security transactions were conducted, creating a set of rules that would govern trading practices. These foundational guidelines included provisions about commission fees and assured fairness in transactions, which sought to establish order and trust in the rapidly growing financial marketplace.

At that time, the American economy was transitioning post-Revolutionary War, necessitating a structured financial system to support growth and commerce. The brokers were motivated to establish this exchange due to the unregulated trading environment, which often led to confusion and disputes over transactions. By formalizing their agreements, they could enhance the efficiency and transparency of trades, paving the way for what would become the world's largest stock exchange.

As the Exchange began to gain traction, it facilitated the buying and selling of government bonds as well as shares in various companies. The organization eventually evolved into a formal stock market, attracting more investors and leading to the establishment of a proactive economy. The NYSE played a vital role in the American financial landscape, helping to channel capital into burgeoning industries that would drive the nation's growth through the 19th and 20th centuries.