History Of The Stock Market
Many historians and stock market experts believe the history of the stock market dates back only to the late 12th and early 13th century Middle Europe. It is a common belief that the first inklings of a stock market like setup were the French, the Venetians and the Bruges. However, actual trading in shares and stocks came about with the Dutch during the same time, who, introduced co-ownership and divided profits through shares and stocks. These markets were the first places where people could invest in other businesses and become minor partners to reap profits alongside the issuing businesses.
Some speculations suggests that the history of the stock market can be traced further back to around 11th century, among the Jewish and Muslim traders in Cairo who had setup methods of credit and trade as well as a functioning trade exchange.
Whatever the ancient history of the stock market, one thing is for certain that the modern Stock market dates as far back as the New York Stock Exchange (NYSE). Some 200 years ago, the colonial government introduced the ideas of bonds and then the institutional banks of America, sometime later, started dealing out stocks and shares to large businesses in order to raise cash for expanding and running their operations. It was only in the year 1792, the NYSE was established by some 24 large merchants who agreed to deal in stocks and shares on a daily basis. As time continued more businesses saw stocks as a means of raising money interest free to finance their expansion plans and thus towards the start of the 1900s the NYSE was dealing in the millions. Speculative trading or the exchange of shares among investors came about during this time as well. Up until then shares were exchanged only between the issuing business and investors.
