The Unexpected Origins of the NYSE: Buttonwood, Tontines, and a Coffee House

This article unveils the surprising history of the New York Stock Exchange. While the Buttonwood Agreement of 1792 laid the groundwork, the subsequent development hinges on the Tontine Coffee House. Funded by a unique annuity-like scheme called a tontine – a blend of retirement planning and lottery – the coffee house became a hub for early traders. Investors received dividends until death, with remaining funds increasing the payouts for survivors. This unusual financial instrument, combined with the coffee house's central role, ultimately led to the evolution of the modern NYSE. The story highlights the fascinating evolution of finance and the impact of an archaic financial tool on the modern financial system.