Stock market history

Stock markets that we know of today are very different from what they were when they stared operating. Most stock exchanges began as coffee house meetings in an unorganized fashion.

Stock market history had its origins in France. In the 12^th century, courratiers de change, the first brokers originated, who traded in debt and securities.

The stock exchange history in Europe is many centuries old. Through out Europe, unofficial stock exchanges existed till the 17^th century. The 13^th century saw the emergence of Venetian bankers, who traded in government securities. In the 14^th century bankers started training in securities in Pisa, Genoa, Verona and Florence. It was the Dutch, who started joint stock companies. In joint stock companies, the shareholders invested in businesses and then they shared profits as well as losses.

In 1602, Amsterdam stock exchange was formed. It could be called as the world’s first stock exchange. It was the time when Britain, France and Netherlands chartered long voyages to India (East Indies). Many voyages were failed attempts which resulted in losses. Thus companies were formed where investors put money, who after a successful attempt, shared profits. So, most securities and shares that were traded at stock markets spun around spice and shipping trade. The Dutch East India Company (Vereinigte Oostindische compagnie) was the first company to issue shares and bonds on the Amsterdam stock exchange.

By early 17^th century, the stock exchange was fully operational. Amsterdam Beurs or the Amsterdam stock exchange established continuous trading and introduced short selling, merchant banking and option trading.

After France and England, stock exchanges were formed in America also.  Earlier, all the stock exchanges had floor trading, which involves meeting of trader s face-to face. With time, as the technology evolved, floor trading gave way to electronic trading. New York stock Exchange still has floor trading system but shares can also be traded electronically. The stock exchange history of New York Stock exchange goes back to late eighteenth century. America was growing then and companies were in need of funds. The potential of the stock market was realized by investors and companies alike.

In America it was believed that to build a strong economy, development of stock exchanges should be promoted. In the 20^th century, stock markets were fully operational throughout the world, in Europe, Asia and America. Most stock exchanges were shut down during the World War I and II temporarily. Ti was the most turbulent time in the stock exchange history.  

These days’ stock markets are the means through which a company can generate funds. It offers the investors an opportunity to own a stake in the company and share company’s profits. Now stock exchanges are highly regulated bodies unlike the older ones which had no regulations. Now, there are stock markets in every developing and developed economy. A stock exchange is a good indicator of a company’s economy. New York stock exchange (NYSE), London Stock exchange and NASDAQ are premier stock exchanges of the world which have impacted global economies.