Stock Market History
The trading in Cairo, Egypt, in the 11th century was established by Jewish and Muslim merchants who set up different types of trade associations and had the knowledge of, for the time, advanced methods of credit and payment. Later, in the 12th century, in France, people called courratiers de change managed and regulated the debts of agricultural communities on behalf of the banks. These men also traded with debts, and thus could be called the first financial brokers. By late 13th century, Bruges in Belgium, had commodity traders that gathered inside the house of a man called Van der Beurse. In 1309 this became the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting. The Brugse Beurse idea spread around Flanders and neighboring counties and Beurses were opened in Ghent and Amsterdam soon after. Venice (and Italy) has a very important role in stock market evolution. In the middle of the 13th century Venetian bankers started trading in government securities. This practice spread to bankers in Pisa, Verona, Genoa and Florence during the 14th century. This was possible because these cities were independent city states ruled by a council of citizens. Later, Dutch were the first Europeans that started joint stock companies, a format which allowed shareholders to invest in business ventures and get a share of their profits. In 1602, the Dutch East India Company became the first company to issue shares on the Amsterdam Stock Exchange. It was also the first company to issue bonds. The Amsterdam Stock Exchange (also called Amsterdam Beurs) is also the first stock exchange to introduce continuous trade in the early 17th century. The Dutch were the first to pioneer short selling, option trading, debt-equity swaps, merchant banking, unit trusts and many other speculative financial instruments. |