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buttonwood agreement

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Financial Dictionary

Buttonwood Agreement

The agreement between 24 of United States' first and most prominent brokers. Rumored to have occurred under a "Buttonwood" tree, this marked the beginnings of the investment community of Wall Street.

Investopedia Commentary

The brokers based the US system upon existing European trading systems. In fact, the Spanish practice of dividing the silver dollar into eighths was largely responsible for the prevalence of fractions when describing stock values.

See also: Big Board, NYSE, Wall Street

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Financial Dictionary

Buttonwood Agreement

A historical 1792 agreement among 24 New York brokers to band together into an investment group. The name stemmed from the buttonwood tree that served as the Wall Street meeting place for members of the group.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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