subject: The History And Security Of Stocks [print this page] There are a lot of people that have invested in the stock market. The recent economic downturn has deterred a lot of people from investing in the stock market.
If you are looking for a place to invest your money but you are straying from the stock market because you are worried about losing your money you should re-think your decision. Investing in the stock market does not have to be as scary as you feel that it is.
Before you even think about investing in the stock market you should have a full and complete understanding of what the stock market is. Knowing all that you can about the stock market may give you a peace of mind that is not possible through any other way.
First, you should understand the history of the stock market. The first stock market came about in France a long time ago.
It was in the twelfth century that the courratiers de change created what was a semblance of a stock market. These men dealt with the agricultural communities and their debts to the banks.
This group of men traded with the debt that they would deal with. These men would have been termed brokers in today's day and age.
These men had never become an official institution. It was not until they met in Antwerp and had an informal meeting that they decided they would make their profession official.
They called themselves "Beurzen" and they began to trade commodities. This idea quickly spread and in almost no time at all Flanders, Ghent and Amersterdam all established similar institutions.
It was not until the 13th century that the government became involved in these primary stock markets. At this point in time the Venetian bankers started to trade in government securities.
Interestingly enough the Venetian government made it illegal to talk poorly about the government to try and lower the price of the stock. Too many people started spreading rumors about the government to lower the prices of the stock.
Then, in the 14th century a lot of other cities began to do the same thing that the Venetian traders were doing. Some of the cities that started to trade government funds were Pisa, Verona, Genoa and Florence.
The cities in this time were not ruled by a single ruler. Instead, they were ruled by a group of influential citizens. This system enabled people to act out of self-interest instead of interest for the Duke.
All of these systems were systems of isolated trade. The continuous trading systems were not introduced until the Dutch made the systems in the 17th century.
The Amsterdam Stock Exchange was the first exchange in which companies would issue stocks and bonds. The very first stocks and bonds were sold by the Dutch East India Company.
No other markets before this time had any of the bells and whistles that this market and modern markets have. These markets introduced the short sells, option trades, unit trusts and even debt-equity swaps that are common in today's day and age.
Stock markets have now been instituted in almost every single country that has an economy that is developed. It was estimated in the beginning of October 2008 that the world market was worth around 36.6 trillion dollars.
This number does not include the price of the derivative market. The derivative market is worth almost eleven times the regular market.
This market is worth about 791 trillion dollars. It is unfair to compare this number directly to the number of the value of the stock markets in the world because they are comprised of so many different things.
Some of the biggest markets in the world are in the United States, Japan, China, Canada, France, Germany, United Kingdom, India, South Korea and even the Netherlands. These markets have all experienced a lot of ups and downs.
The stock market has a long history and has become one of the most important ways that a company can raise money. With this influx of money they are able to improve their business.
When a stock market crashes it is very detrimental to a lot of people. The stock market is such a fundamental part of a nation's economy.
Knowing the history of the stock market is important and knowing that it has been around for a while helps many people become more comfortable investing. Although knowing the history of the stock market is important this is not where your research should stop.
You should know as much as you possibly can about the stock that you want to invest in before you invest.
