There are a lot of people out there who want to make sure that they know as much as they can about the stock market and what it can do for them. That being said, why is the stock market even around? Are there things that we see when it comes to the stock market and how do you know that it’s something that you can trust? Here are the most important parts of the stock market and how it started to become what it now is for the entire world.
Why and how was the concept of a stock market developed?
In France in the 12th century, many of the bankers were concerned with debts of the farmers in the area. They began trading these debts, but only at scheduled times. The concept expanded with government securities. The first country to continue this concept with our modern terms of “stocks” and “bonds” was the Netherlands; the Amsterdam Stock Exchange was also the first stock market to continuously trade like the stock market we are familiar with in the modern era.
What is the history of the United States stock exchange?
The stock market in the United States was established in 1792 in New York City. An agreement called the Buttonwood Agreement was signed by over 20 stock brokers. This became what is now called the New York Stock Exchange. It was always on the now-famous Wall Street, first out of a rented room, and after they started to see a lot of progress, they eventually spent the money and received a permanent building to house everything in. The exchange started with only a few companies, and has now expanded to include literally thousands of companies with trillions of dollars being dealt with every day.