Stock Exchange to allow individuals and businesses a place with another trade securities. Company or government securities issued or redeemed at the Stock Exchange. To understand the need to stock exchanges, we must first go back to the time, time is very far to see the first example of stock. Founded in the 12th century one of the first record of the exchange. It allows banks and the community, agriculture in the economy based on debt management and processing. The idea of ??this transaction, spread rapidly throughout Europe.
The future of one of the places, there is communication with bankers in Venice in the 13th century, government securities transactions. Such as Pisa, Genoa, Verona and Florence also began trading in securities of other communities. During the same period, we see Bruges, Belgium, to the explosion on the map. While many speculated that Bruges is the world's first exchange, no one will suspect a thing is how quickly becoming the power house in the region. Bruges initial start-up called van der treasury within the individual commodity trading houses of merchants. The idea spread to Brussels, Bruges and Amsterdam and other places as well.
The first joint-stock company from the Netherlands began to do so. Joint-stock company, was a new idea. They allow shareholders to invest in the venture. The difference is that the share of profits paid by the owners, or their loss of production joint venture share of responsibility. This is not to excessive financial risk, any case of a single investor, commercial enterprises can take the first time in history, while ensuring a very lucrative opportunity.
Established as a joint-stock company is the first ever Dutch East India Company. Dutch East India Company issued the first shares, which is exactly the first time ever in the World IPO (initial public offering). It issued stock, or even selling bonds to investors. Participated in the Amsterdam Stock Exchange to sell its shares.
Decades later, in to be accurate, the London Stock Exchange was born. Need to fund two voyages: The Muscovy Company attempts to achieve through China, Russia and the northern White Sea and the East India Company voyage to India began trading on the London Stock Exchange. Unable to fund these expensive private journey, the company offered to sell shares in the business of money, so they have the right part of any profits eventually made. The idea quickly caught on. It is estimated that 1695 there are 140 joint-stock company. Changes in the stock trading around the city's Lane, in the two cafes