History of the Stock Market

The idea of creating a stock trade was started when several European businessmen lost their fortunes from their trade exercises. Therefore, they start thinking of a mechanism to reduce or eliminate this misfortune. Consequently, several vendors joined forces to share benefits and misfortunes with them. This idea was successful and slowly got adapted by many merchants.

Over time, this procedure became legal and the first joint-stock company got created. The primary stock company was a Russian joint-stock company, which in 1353, chose to transfer merchandise from Northern Europe to East Asia and China without circumventing Africa, which was a risky activity. To accomplish this, many dealers shared capital, and everybody offered the company's benefits and misfortunes, and this was a success. Later on, with the further development of trades in Europe, more capital was required. A few centers were formed to set up a relationship between financial specialists and speculators. The first modern stock exchange started within the 17th century in Amsterdam, Netherlands, and nowadays most countries have a stock market. The stock is a French word and translates to wallet in French. The key reason for the arrangement of the stock exchanges within the world is the aggregation of capital and financing of companies and their ventures in a legitimate framework.

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