May Day

May 1st, 1975. It was a cool Thursday in New York City. The temperature was in the low 50s, and there was a slight breeze in the air. But over on Wall Street, things were beginning to heat up, because on this day—known now as “May Day”—something historic happened: brokers were, for the first time ever, allowed to charge variable commissions.

That’s right: the requirement for fixed-rate commissions was officially a thing of the past. Brokers could charge different fees based on the size of the trade.

This was a game-changer for ordinary everyday investors who’d previously felt priced out of stock market fun, and it also opened the door for a new era of broker competition.

All in all, it was a big day, which is why we celebrate it by having a bunch of girls dance around a really tall wooden pole and wrap it in ribbons.