The reason the New York Stock Exchange began to trade mostly stocks is:
A. The rise of canals and railroads that promised higher returns.
Canals and railroads were major infrastructure projects in the 19th century that promised significant economic growth and higher returns on investment. As these projects expanded, companies involved in these industries sought funding by issuing stocks on the NYSE. This led to an increase in stock trading on the exchange as investors were attracted to the potential profits from these booming sectors. The demand for stocks related to canals and railroads grew, shifting the focus of the NYSE towards trading stocks rather than other securities like bonds.
In summary, the growth of canals and railroads that promised higher returns played a significant role in the New York Stock Exchange beginning to trade mostly stocks.
