According to most experts, the history of the word stock market dates back to the 15th century.
At that time, merchants and urban merchants called Bruges in northwestern Belgium gathered in a square called TerBeurze in front of a large house called the Wonder Bourse.
From that date on, the places where people buy and sell became known Bourse or as stock exchanges.
The word stock market, like any other word, has a historical background.
For example, the word bank came from the fact that in Europe people used to sit on the benches of old squares and exchange their money to make money.
Because the word “bank" in Italian means “bench", the centers that were responsible for making money transactions later became known as banks.
At that time, these places did not have a special discipline and everyone could work there, but over time, a certain discipline prevailed in these places, so that after a while, only merchants, There were money changers and brokers who were allowed to buy and sell in these places.
Over time, the roofs of the stock exchanges were formed, and merchants who had previously traded in the open air went to these halls to buy and sell. In many scientific and historical sources, the opening time of the roofed halls of the stock exchange is introduced as the official date of the establishment of the stock exchange in the world, although, as we have said, its history dates back to before that date and to the fifteenth century.
But what were the merchants doing in these rooftop halls known as stock exchanges?
To explain this, we must first explain another concept; a concept called a joint stock company.
In the past, traders have always sought to reduce the potential losses of their business. Partnership was a way to reduce their business risk because by sharing several people in a business, the potential benefits and harms of that business would be shared between partners.
This experience gradually led to the formation of joint stock companies. In these companies, each partner contributed to the company’s potential benefits or losses in proportion to its share in the company.
The first joint stock company, Muscovy, was formed in 1553 with the participation of a number of Russian merchants. The spread of trade in the world has revealed the need for more capital and more partners.
Finding multiple partners to invest in a business required centers that could actually communicate between the owners of the capital and the applicants for the capital. These centers became known as “stock exchanges". By selling their stocks on the stock exchange, companies were actually finding more investors and partners to participate in their business.
The world’s first stock exchange
It was formed in the early 17th century in Amsterdam, the Netherlands, and the East India Company was the first company to offer its shares. Exchange-related activities in the city of London began in the early 18th century in coffee shops. These activities entered a new chapter in 1773 with the purchase of an independent building by traders. Finally, on March 3, 1801, the London Stock Exchange officially began operations.
But how did the New York Stock Exchange begin its history as the third largest stock exchange in history?
May 17, 1792, 24 Stock Market Agents on Wall Street, New York
And they gathered together under a sycamore tree
And they signed an agreement that became known as the “Plane Tree" agreement.
On March 8, 1817, they ratified the New York Stock Exchange.
As the world’s major stock exchanges began to operate, other countries gradually gained stock
As far as today, there are few countries that do not have a stock market.
Published and authored by FalconProfit.com
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