Stock Exchange History
The stock market is a market where stocks, bonds, commodities, currencies and other financial instruments are traded. The history of the stock market dates back to ancient times. The first stock market transactions started in Europe in the 15th century. At that time, traders would meet at certain places to sell or buy their goods. These places were called stock markets. The name of the exchange comes from the house of the Van der Beurse family in Bruges, Belgium, where the merchants congregated.
One of the factors that play an important role in the development of the stock market is maritime activities. Founded in the Netherlands in the 16th century, the East India Company is considered the world's first joint stock company. This company needed large capital to trade with Asia. Therefore, he collected money from the public by issuing stocks. These stocks began trading on the Amsterdam Stock Exchange. Thus, stockbroking in the modern sense was born.
Stock markets have diversified and developed over time. The London Stock Exchange was established in the 17th century. In the 18th century, the Paris Stock Exchange in France and the New York Stock Exchange in the USA became operational. In the 19th century, stock markets gained even more importance with the industrial revolution. Because the industrial sector needed large investments. In order to meet these investments, stock sales were made through stock exchanges.
In the second half of the 20th century, stock markets were affected by technological developments. With the widespread use of computers and the internet, stock markets have moved to the electronic environment. Now, without the need to come together physically, stock market transactions can be made online. In addition, with globalization, integration between stock markets has increased. Stock markets in different parts of the world have become interconnected.
Stock markets are an important part of the financial system today. Thanks to stock exchanges, both companies and investors benefit. While companies gain capital by selling stocks on stock exchanges, investors try to make a profit by buying their stocks. Stock markets are also economic indicators. Price movements in the stock markets reflect the state of the economy.
The history of the stock market has progressed in parallel with the history of humanity. Stock markets have witnessed the development of trade and finance. Stock markets will continue to be indispensable elements of economic and social life in the future.