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| The History of the Stockmarket |
Definition
Although common, the term 'the stock market' is a somewhat abstract concept for the mechanism that enables the trading of company stocks. It is
also used to describe the totality of all stocks, especially within one country, for example in the phrase "the stock market was up today", or in the term
stock market bubble.
It is distinct from a stock exchange, which is a corporation in the business of bringing buyers and sellers of stocks together. For example, 'the stock
market' in the United States includes the trading of stocks listed on the NYSE, NASDAQ, and Amex, and also on the OTCBB and Pink Sheets.
Trading
Participants in the stock market range from small private stock investors to large hedge fund traders, who can be based anywhere. Their orders end
up with a professional at the stock exchange, who executes the order.
Market participants
Many years ago, worldwide, buyers and sellers were individual investors, such as wealthy businessmen. Over time, markets have become more
"institutionalized"; buyers and sellers are largely institutions (e.g., pension funds, insurance companies, mutual funds, investor groups, and banks).
The rise of the institutional investor has brought with it an increase of professional diligence which has tended to regulate the market.
For the other side, since the definitive rise in the use of Internet banking in the late 1990s, both casual and professional stock investors around the
world have emerged as a potential new kind of major participants in the stock markets.
The ownership of stocks in markets around the world varies, for example the majority of the shares in the Japanese market are held by financial
companies and industrial corporations, whereas stock in the USA or the UK are broadly owned, also by individual investors.
History
In 12th century France, the 'courratier de change' were concerned with managing and regulating the debts of agricultural communities on behalf of
the banks. Because these men also traded with debts, they could be called the first brokers.
In late 13th century Bruges, commodity traders gathered inside the house of a man called Van der Bourse, and in 1309 they institutionalized this
until now informal meeting and became the "Bruges Bourse". The idea quickly spread around Flanders and neighbouring counties and "Bourses"
soon opened in Ghent and Amsterdam.
In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading
rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities
during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens.
The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In
1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.
The first stock exchange to trade continuously was Amsterdam's Beurs, in the early 17th century. The Dutch "pioneered short selling, option trading,
debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we know them"
Although common, the term 'the stock market' is a somewhat abstract concept for the mechanism that enables the trading of company stocks. It is
also used to describe the totality of all stocks, especially within one country, for example in the phrase "the stock market was up today", or in the term
stock market bubble.
It is distinct from a stock exchange, which is a corporation in the business of bringing buyers and sellers of stocks together. For example, 'the stock
market' in the United States includes the trading of stocks listed on the NYSE, NASDAQ, and Amex, and also on the OTCBB and Pink Sheets.
Trading
Participants in the stock market range from small private stock investors to large hedge fund traders, who can be based anywhere. Their orders end
up with a professional at the stock exchange, who executes the order.
Market participants
Many years ago, worldwide, buyers and sellers were individual investors, such as wealthy businessmen. Over time, markets have become more
"institutionalized"; buyers and sellers are largely institutions (e.g., pension funds, insurance companies, mutual funds, investor groups, and banks).
The rise of the institutional investor has brought with it an increase of professional diligence which has tended to regulate the market.
For the other side, since the definitive rise in the use of Internet banking in the late 1990s, both casual and professional stock investors around the
world have emerged as a potential new kind of major participants in the stock markets.
The ownership of stocks in markets around the world varies, for example the majority of the shares in the Japanese market are held by financial
companies and industrial corporations, whereas stock in the USA or the UK are broadly owned, also by individual investors.
History
In 12th century France, the 'courratier de change' were concerned with managing and regulating the debts of agricultural communities on behalf of
the banks. Because these men also traded with debts, they could be called the first brokers.
In late 13th century Bruges, commodity traders gathered inside the house of a man called Van der Bourse, and in 1309 they institutionalized this
until now informal meeting and became the "Bruges Bourse". The idea quickly spread around Flanders and neighbouring counties and "Bourses"
soon opened in Ghent and Amsterdam.
In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading
rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities
during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens.
The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In
1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.
The first stock exchange to trade continuously was Amsterdam's Beurs, in the early 17th century. The Dutch "pioneered short selling, option trading,
debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we know them"
| Page 2 : Click here |
Trader : Herman Bogaerts --- Tradersname : Freedom --- Portable : 0033.(0).683.13.99.99
E-Mail : Herman.Bogaerts@Wanadoo.fr --- Herman_Bogaerts@Yahoo.com
E-Mail : Herman.Bogaerts@Wanadoo.fr --- Herman_Bogaerts@Yahoo.com
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