The History And Importance About Stock Markets

When it is about stock markets, this field is important for every nations economy health

. To understand it a bit further, you should know a bit of its historical background. During the 12th century, there were already some groups of people who manage and regulate debts of the agricultural communities on behalf of the banks in France. They appear to be doing the job of a broker. This furthers expanded and places to gather for meetings concerning these issues were soon opened in Amsterdam. During the 13th and 14th century, Venetian, Pisa, Florence bankers started to trade in government securities. The Dutch started the joint stock which leads to shareholders invest in business ventures and reap the profits or received losses from it. In 1602, the Dutch East India Company issued first share on the Amsterdam Stock Exchange making it the first company to issue stock and bonds. To the present time, there is just about any developed and developing countries that have stock markets.

There is much importance about stock markets that you should know. If you think it is only concern those who are actively trading or investing in shares, then you are wrong. It plays a major role in relating to your own life. Just about activities like going to mall to buy a new clothing to any groceries being purchased link to it. As it is one source for companies to raise money, there will be an effect on the household consumptions should there be any rise or fall of shares prices.

There are often problems and issues arise about stock markets. The market does react to some economic and financial news which could be of no substantial threat to its security. Just with some rumours in news or some mass panic from the communities are enough to push some investors to act in an irrational way.

by: Chris Cornell

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