https://www.youtube.com/watch?v=p7HKvqRI_Bo
Before stock markets existed, partners wanting to sell a share (stock) of a business, had to arrange a private sale. In the 1100s, the French devised the first major brokerage system to trade agricultural debts and by 1328 Venetian merchants were loaning money to governments and trading government bonds (debts).
Although there were earlier developments in Antwerp and Lyon, France, before1548, a roofless courtyard in Amsterdam became the world's first stock exchange in 1611.
The world's first publically traded company was the Dutch East India Company (VOC). In 1612, it was the first company to issue bonds (in exchange for loans) and shares of stock to the general public on the new Amsterdam Stock Exchange.
At the time, trading between India, China and Europe was too risky for any single company. Many ships never made it home, victims of shipwreck and pirates.
Investors knew that putting all their "eggs into one basket (or ship)" was not the best method of making money but if only one ship in ten was sunk or seized by pirates, investors could still make a profit by buying shares in many companies.
The idea of 'spreading risk' was quickly adopted by other groups in England, France, Belgium, and the Netherlands.
In 1600 London, investors formed the, "Governor and Company of Merchants of London trading with the East Indies" which later governed almost the whole of India. The East India Company, was the first company to have a limited liability. Whereby, investors could lose only their investment, and not their entire fortune, in the event the company became bankrupt.
Seeking a way to pay for wars, the English King William III, issued the first government bonds in 1693, The Bank of England was set up the following year and, soon after, English joint-stock companies began selling shares to the public.
London's first stockbrokers were not allowed into the Royal Exchange so they traded in coffee houses. In 1698, John Castaing, operating out of Jonathan's Coffee House, marked the beginning of the London Stock Exchange by posting lists of stocks and commodity prices.
By the 1790s, shares were being traded in the young United States of America. On May 17, 1792, the New York stock market opened when 24 stockbrokers agreed to trade five securities under a buttonwood tree. The New York Stock Exchange (NYSE) was established in 1817 and soon became the world's biggest stock exchange.
The Dow Jones Industrial Average, consisting of the stock prices of 30 large publically-owned American companies, was first published in 1885. The Standard & Poor's 500 Index, a collection of 500 stocks representing the composition of the U.S. economy, was set up in 1957.
After dominating the world economy for nearly three centuries, the New York Stock Exchange finally had competition in 1971 with creation of the National Association of Securities Dealers (NASDAQ) stock exchange.
NASDAQ, held entirely on a network of computers with all trades made electronically, has major advantages including a reduced bid-ask spread and a lower cost of trading.
https://www.youtube.com/watch?v=A7fZp9dwELo
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Literatura FaktuBanking began in Florence, Venice and Genoa in the 14th century when Jews set up their benches in the piazzas to loan money and insure farmers crops. The ideas spread to Amsterdam and London, while the first stock exchange began in Amsterdam in 161...
