The Wall Street is considered as the World’s most influencing Financial Centre. Idealists and Communists mark Wall Street as an epitome of the unhealthy capitalist structure. One way or the other Wall Street enjoys a certain type of envy and attention. One thing is quite certain that the history of modern trading functions has shown and showing every day that the impact of Wall Street is not only confined to the American Economy, but it is also very much influential in the World Economy.
Wall Street currently stands for all the US investors and financial industries dealing with shares and trading structure. It includes all the big Investment Banks, Commercial Banks, and Brokers, Trader and Dealers, Financial Institutions, Asset Management Companies, and Firms.
There are many companies on Wall Street those have their headquarters in other countries or cities. Still, they are very careful about the happenings in Wall Street. These companies from other countries also have their entity in the stock exchange of their home country. Now the question is why Wall Street. One must remember in this context that the US is the largest (Biggest) Economy among all the countries in the world. Their GDP is almost twice from the Second Best (China). In terms of Capital investment, the US is also leading the World Economy and in this case, also the margin is quite bigger. All these reasons make the US market very much important for the investors from all over the world.
As US is dealing with a much larger amount and their GDP is quite high, it means many companies from other countries are directly or indirectly connected with these US investors and traders. These banks dealing on Wall Street are also connected with the whole world and they are dealing with different companies from different countries. Now, any changes in Wall Street will suddenly have impacts on the traders trading on Wall Street and this impact then circulates in the world market as the Wall Street is one of the biggest economic power sources. Companies from all over the world are quite careful about the happenings on Wall Street and that is because any changes at Wall Street will surely impact on the capitals circulating all over the world, it will impact on the decision making of big companies.
The United States also the most powerful country in terms of politics. Any decision or changes made by the US Government create big news all over the world. We all know how much business and politics is interconnected and the big companies know it quite well. This is also a big reason that they are always looking at the Wall Street as any fall or raise there will also impact the world politics
The concept of the Global village and uprising of Asian countries, including India and China is now showing signs that, countries may get rid of these over dependency on the US market. If the United States wants to hold its economic supremacy and the importance of Wall Street, then they must remain on their toe.