Goldman Sachs' journey to Wall Street:
• Marcus Goldman, a Jewish immigrant, started his finance career in 1886, offering short-term debt to small businesses at a discount. This led to the creation of commercial papers, the beginning of the investment banking industry.
• Goldman Sachs, a riskier financing firm, was established in 1896.
• The firm's capital was shared among five partners by 1896.
• Goldman Sachs' business grew to selling around 30 million dollars in commercial papers per year.
• To expand, the firm began taking companies public, or IPOs, in the late 19th century.
• Goldman Sachs partnered with the Lehman Brothers to underwrite 30 million dollars of Common Stocks and 10 million dollars of preferred stocks for Sears.
• The partnership led to the firm becoming a prominent investment bank on Wall Street by 1914.
• Goldman Sachs' senior partner Henry Goldman was invited to become a designer for the U.S Federal Reserve System.
• After profiting from issuing stocks and bonds, Goldman Sachs needed to reinvest its money.
• The Roaring 20s, a cyclical business, was a perfect opportunity for Goldman Sachs to capitalize on.
• Goldman Sachs formed a trading corporation, selling more shares to the public at 10 times the price, raising 93 million dollars and their original investment.