The stock market is as large system controlled by enormous amounts of currency and is a very largely influencing system for a long time. Before the depression of 1929, the stock market had a very deep history and international importance. The depression caused many problems for the stock market, but in almost 100 years it rose back up with great power. What is the stock market, and most importantly how does it work? The stock market is the collection of markets and exchanges where the trading of shares, bonds, and other items take place, either through formal exchanges or over-the-counter markets. Also known as the equity market, the stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership.1 The stock market can be split into two main sections: the primary market and the secondary market. The primary market is where new issues are first sold through initial public offerings . Institutional investors typically purchase most of these shares from investment banks; the worth of the company “going public” and the number of shares being issued determine the opening stock price of the IPO. All subsequent trading goes on in the secondary market, where participants include both institutional and individual investors.There are two types of accounts that are used for investing. Margin accounts allow the convenience of borrowing money from your broker, either to leverage returns or for cash flow convenience as pertains to settling trades or creating a de facto line of credit for your working capital needs. Without your knowledge, securities you hold in your margin account can be lent out to short sellers to generate additional income for the broker. Under certain circumstances, if this happens and the short sellers cover the dividend payment you are entitled to receive, you will not be allowed to claim the dividend as “qualified dividend” subject to much lower tax rates, but must instead pay ordinary personal taxes on it. This could result in you paying practically double the tax rate you otherwise would have paid because your broker was trying to earn more profit for its own income statement at your expense. Additionally, you may be subject to rehypothecation or hyper-rehypothecation risk. Cash accounts do not permit any borrowing of money (trading on margin) from the broker or financial institution.Any trades must be fully paid, in cash, by the required settlement date. This has the practical effect of restricting the ability to place trades more often as there may not be available cash settled and ready to deploy within your account at the moment you want to place a buy order. Likewise, you will need to wait until settlement to make a withdrawal of cash raised from a sell order. Stocks held in a cash account are not lent out to short sellers. With no margin debt, investors holding securities within a cash account will never be subject to a margin call within the account nor will they have to worry about rehypothecation or hyper-rehypothecation. Cash accounts cannot short the stock. Cash accounts must behave much more conservatively when dealing with options.A recession occurs in the state of the economy failing for more than 6 months.which is the case of digression in 5 economic areas: GDP, income, employment, manufacturing and retail sales. a recession is when the GDP growth rate is dropping for two quarters or more. Although, a recession can faintly start before the quarterly gross domestic product reports are out. Which is why the National Bureau of Economic Research keeps the other areas in mind. The GDP will respond negatively to any decline of the other factors. A recession is normally advancing in the state of multiple quarters are decelerating but are still positively growing . usually a quarter of negative growth will emerge, continued by positive growth for multiple quarters, and followed by an addition quarter of negative growth.The first sign of an impending recession occurs in one of the leading economic indicators such as manufacturing jobs. Manufacturers receive large orders months in advance. That’s measured by the durable goods order report. If that declines over time, so will factory jobs. When manufacturers stop hiring, it means other sectors of the economy will slow. A fall-off in consumer demand is normally the culprit behind slowing growth. As sales drop off, businesses stop expanding. Soon afterward they stop hiring new workers.By this time, the recession is usually underway. For more, see What Causes a Recession?A recession is destructive. It creates widespread unemployment, sometimes as high as 10 percent. That’s when it affects most people. As the unemployment rate rises, consumer purchases fall off even more. Businesses go bankrupt.In many recessions, people lose their homes when they can’t afford the mortgage payments. Young people can’t get a good job after school. That throws off their entire career. Even if the recession is short (nine to 18 months), its impact can be long-lasting.A depression is a deep and long-lasting recession. While no specific criteria exist to declare a depression, unique features of the last U.S. depression, the Great Depression of the 1930s, included a GDP decline in excess of 10% and an unemployment rate that briefly touched 25%. In ancient times before the existence of dollars or euros, In places like Rome and other parts of Europe existed a market with trade of produce and gold. The main style of trade was in between merchants and government. The first stock market system was in Belgium, in the home of the beurze family, which is the reason for the early name of the stock market, beurzen. To not confuse this primitive system with the modern one would be wise because the property being traded did not involve buying and selling stocks but taking care of government duties and personal debts. This system didn’t possess the key features of “stocks.”2 This system wouldn’t allow you to buy a certain amount of stocks for a company. Also, it did not have the ability to house investments, meaning that any money that you paid would come back to you in the exact amount you put.The first genuine stock markets didn’t arrive until the 1500s. However, there were plenty of early examples of markets which were similar to stock markets. In the 1100s, for example, France had a system where courtiers de change managed agricultural debts throughout the country on behalf of banks. This can be seen as the first major example of brokerage because the men effectively traded debts.Later on, the merchants of Venice were credited with trading government securities as early as the 13th century. Soon after, bankers in the nearby Italian cities of Pisa, Verona, Genoa, and Florence also began trading government securities.The world’s first stock markets are generally linked back to Belgium. Bruges, Flanders, Ghent, and Rotterdam in the Netherlands all hosted their own “stock” market systems in the 1400s and 1500s. However, it’s generally accepted that Antwerp had the world’s first stock market system. Antwerp was the commercial center of Belgium and it was home to the influential Van der Beurze family. As a result, early stock markets were typically called Beurzen. All of these early stock markets had one thing missing: stocks. Although the infrastructure and institutions resembled today’s stock markets, nobody was actually trading shares of a company. Instead, the markets dealt with the affairs of government, businesses, and individual debt. The system and organization were similar, although the actual properties being traded were different. The stock market before prior to the depression wasn’t very different from how it was during and some years after it. Canada, and especially the U.S.A. have already experienced quite a few recessions, and recessions became quite a well know and expected event. It was discovered by many that buying stocks at an all-time low so that the stock value would be cheap and rise drastically after the stock market climbs back up. The short history of the stock market really set many people for bankruptcy, because everyone in the stock market already hoped for a recession, but ended being fooled by an event that usually brings riches.During the 1920s, the stock market underwent rapid expansion, reaching its peak in August 1929, after a period of wild speculation. By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the eventual market collapse were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated. One of the major causes of such devastation for the stock markets collapse was the dependence on margins by middle-class citizens, which were loans from the government used to buy shares. This is because once no one could sell their shares anymore, they weren’t able to pay off their debts. Many people decided what this crash was was a recession, and they would make a lot of money once the market came back up, but it didn’t for many further years. Stock prices began to decline in September and early October 1929, and on October 18 the fall began. Panic set in, and on October 24, Black Thursday, a record 12,894,650 shares were traded. Investment companies and leading bankers attempted to stabilize the market by buying up great blocks of stock, producing a moderate rally on Friday. On Monday, however, the storm broke anew, and the market went into free fall. Black Monday was followed by Black Tuesday (October 29), in which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors, and stock tickers ran hours behind because the machinery could not handle the tremendous volume of trading. After October 29, 1929, stock prices had nowhere to go but up, so there was considerable recovery during succeeding weeks. Overall, however, prices continued to drop as the United States slumped into the Great Depression, and by 1932 stocks were worth only about 20 percent of their value in the summer of 1929. The stock market crash of 1929 was not the sole cause of the Great Depression, but it did act to accelerate the global economic collapse of which it was also a symptom. The depression affected the stock market very thoroughly and caused the stock market to be failing for an entire 25 years before Canada could finally peace itself together and create a recession for its stock market. As poverty steadily began to decrease, the stock market began to rise up again with a larger value of shares, and companies progressively growing. At this time, post world war 2, businesses like coca-cola and ford were extremely reliable, as ford rose up in popularity very quickly and coca-cola was is still infamous for steadily growing without any drops for 100 years. Only upper class- citizens that still had the wish to look over at the stock market in those difficult times were able to take advantage of the recession. All the middle-class citizens were dealing with survival and missed their chance. The present market, an electronic goliath that rules over majority of economies. The stock market today is a trending theme, along with bitcoin which is a similar system. Today’s market possesses the same dividend and account system. Our margin accounts aren’t very popular anymore due to our history with them, however, the cash accounts which are account’s that purchase shares directly from your wallet. Even though we had much experience with crashes we still ignorantly made 2 smaller scale crashes in 1982 and 2008. With a deep and twisted history, the stock market stands very tall in present days.It is much more powerful and spread out than it was a century ago.