STOCK MARKET HISTORY

FACTS ABOUT THE STOCK MARKET HISTORY

The term stock market is common for all the countries where the operations of each market depend upon the practices of the country. The stock market is the place where the stocks are bought and sold. These markets dealt with the listed companies stocks and the stock market history provides such buying and selling details.

ORIGIN OF STOCK MARKETS

The stocks of the companies are issued as shares to the general public. The shareholder is considered as one of the owner of the company. An individual firm owned by an individual has 100% shares with him, whereas in a public company the shares are distributed among different persons called as the share holders. The shareholders share the ownership with others and the company is managed by the board of directors. When the number of owners of a company exceeds the number of 50 then the company is called the public company. The public company can sell their shares for the expansion of its capital.

BEGINNING OF THE STOCK MARKET

The stock market history begun in the early 13th century, the Belgian stock market was established as the first stock market. Then in the later 17th century, the London stock market called the London stock exchange was opened. The Americans too started the stock market in the New York with the name of New York Stock Exchange. The main aim of starting these stock exchanges is to improve the capital of the industries by sharing the ownership of the companies. In other words, the capital is increased by selling the shares to the general public. These stock markets met a heavy crash on the year 1929 resulting in the economic depression in many countries. With the effective market stabilization, these stock exchanges recovered from the loss in the years of 1940 and made a change in the stock market history.

VARIOUS STOCK EXCHANGES

The stock exchanges were found on various countries in different years. The London stock exchange was considered as the first successful stock exchange started in the year 1698. With its improved activities, it lists more than two thousand companies in various countries. After the Europeans, the Americans started the New York stock exchange in the year 1792 having the lists of more than two thousand five hundred companies. The Americans started another stock exchange called the American stock exchange in the year 1849 and they form as one of the important market in the America. While in Asia, the Bombay Stock exchange is the first stock exchange started in the year 1875. NASDAQ is another market which came into existence in the year of 1971.

USES OF STOCK MARKET HISTORY

The stock market history provides the details and path by which the stock market originated and the way it comes into existence. The stock market history makes the awareness about the stock exchanges and the motive by which they are created. The stock market history will helps to avoid the previous problems and provides the ways to avoid another economic depression in the world. The age and the existence of various stock exchanges in various countries are provided by the stock market history.