Introduction to the Stock Exchange
For the individuals and for the enterprises, stock exchange is a place to trade some marketable securities with each and other. Instruments are redeemed or issued on the stock exchanges by the companies or governments. These days stock exchanges perform a very important part for the trading of stocks. In order to trade the stocks, they have to be listed with the stock exchanges. Now, stock exchanges are providing a really constructive platform for the folks that wish to invest their money in order to get a perceivable finance expansion.
We will have to go back far in time to see the 1st example of a stock exchange in order to understand the requirement of stock exchanges. The 1st recorded exchange was found in 12 th century. It helped the banks to deal and manage the liabilities of some communities that were economically based in the agriculture. This trading idea didn’t take so long to spread all over Europe.
The next place to have exchanges was in Venice. It was founded in 13th century and was known for trading central authority securities. After that some other communities like Pisa, Genoa, Florence and Genoa also began trading stocks. During the same time period, in Belgium, Bruges came in view exploding the map. Many of us even think that Bruges was the 1st ever exchange in the world. No doubts, it turned into a power house in the area in an exceedingly short time period. The opening start of Bruges came as commodity traders which were gathered inside the house of an individual named as Truck der Burse. By the point, the Bruges ideas spread in many places such as Amsterdam and Ghent also.
Decades later , in 1688, the London Stock Exchange was founded. Trade in the London Stock Exchange began in order to fulfill the monetary desires of two voyages : The Muscovy Company that tried to reach China thru the White Sea. North of Russia, and the East India Companys voyage to India. As they were not able to finance these costly journeys privately, so the companies raised their money by selling the share to merchants that also gave them rights to part of any profits made ultimately. This idea shortly caught on. According to an estimate, by 1695 there became 140 joint-stock companies. Then the stock dealing was focused on the Citys Change Street in 2 coffee shops named as : Garraways and Jonathans.
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