Stock exchanges and the history of their appearance

Stock exchanges are a form of exchange, which provides services in the sale of stocks, bonds and other securities.They also provide the conditions for placement and redemption of securities and other financial instruments, even the payment of income and dividends.

Any exchange shall be recorded in the order.Previously, they were located primarily in the centers of large cities, but today trade is becoming less linked to a physical place.This is because there are numerous modern electronic market network having advantages of high speed and reduce the costs of transactions.In order to work the stock market was available, you must become a member.

securities market took centuries, so that it could develop into a modern state.The idea of ‚Äč‚Äčtaking funds into debt dates back to the ancient world, as evidenced by another Mesopotamian clay tablets with the records of the interest-bearing loans.To date, the opinions of scholars are divided as to when I first started trading corporate shares.Some believe that the key event was the foundation of the Dutch East India Company in 1602, while others point to the earlier events.

So, in the Roman Republic, which has existed for centuries before the proclamation of the empire, there was a societates publicanorum - the organization of contractors or tenants who performed the construction of temples and other services for the government.One such service was feeding geese on Capitol Hill (as a reward, t. To. The birds produce sounds warned the Romans to the Gallic invasion of 390 BC. E.).Members of these organizations have the shares, the essence of which was explained statesman and orator Cicero.These "stock exchanges" (or rather their ancient prototypes) were lost during the reign of the emperor, as a large part of the assets transferred to the state.

bond trading for the first time appeared in the Italian cities in the late Middle Ages and early Renaissance period.In 1171, the authorities of the Republic of Venice, worried about depleted treasury, began to practice a forced loan from the citizens.These payments, known as Prestiti, had no stated maturity and promised compensation in the amount of 5 percent of the amount in the year.Initially they seemed suspicious, but later came to be regarded as a valuable investment that can be bought and sold.The bond market started to grow.

As is the case with the latter, stock markets have evolved gradually.A partnership agreement relating to the division of ownership of shares, often mentioned in the 13th century, again mainly in Italy.However, such agreements are usually applied only to a small group of people and concluded for a limited period, for example, per voyage.

These commercial innovations eventually moved from Italy to Northern Europe.By the end of the 16th century English merchants have collaborated with the company intended to operate on a permanent basis.In the 18th century, stock markets is not much different from today.

The main contribution of these organizations is that they do not require huge capital expenditures to invest in stocks.It gives equal opportunity to invest both large and small investors - a person buys a number of shares that can not afford.In addition, there are now many varieties of these enterprises - Currency and Stock Exchange, futures and so on. D.