Stock Market History

July 25, 2016

Before peeping into the cavernous ends of stock market trading and intricacies, trends and terminologies, it is of high relevance to get a rudimentary idea of stock market history. Speaking broadly, stock market is essentially a plot of business where the deal or buy and sell of the stocks or stock trades of companies happen. Stocks of the companies are essentially the shares of the company. Astonishingly, the stock market size would approximately come around 51 trillion dollars.

When discussions roam around the topic of stock market history, the beliefs and most relevant facts of the matter have to be pointed out. There were some implications that the credit for introducing this kind of a trade should be given to Italians. But historians suggest that this kind of a trade had performed by some Jewish as well as Muslim merchants in the early ages of 11th century in Cairo. That indicates they had their own methods for trading stocks. As a matter of fact, they pointed out that those merchants had proven their prowess in managing several different methods of payment.

Reliable historical pages also suggest the important role played by France in the early ages of 12th century. There were intermediaries who engaged themselves in manipulating or managing the agricultural related debts of people or group in a particular area. They performed their action as a mediator between the people and the bank. In the modern day context, they can be treated as stock broker.

Noticeable imprints can be found in the pages of stock trades about the handy role played by Venetian bankers in 13th century. They have done the stock trade in securities of government. Apart from that, 14th century, the bankers in Pisa, Florence etc marked the beginning of stock market trading in securities of government. Later, the joint stock companies were started by the Dutch people, which witnessed the continuing trend of earning the profit or loss in the business sector, in which the shareholders have invested.

As time passed by, Amsterdam Stock Exchange turned out to be as the stock exchange to deal with bonds and stocks. They have delivered a remarkable service in bringing the sanity in the early years of 16th century, as well as stock market trading is concerned. Later, stock trades have been done continually over the years by almost all the developed and developing countries where the United States leads from the front.