When and how did the stock market originate?

Answer 1

The origin of stock markets goes back a couple of centuries. The roots

of stock markets are to be found at the beginnings of the Industrial

Revolution that began in Europe about four centuries ago. Many of the

pioneer merchants of the industrial age wanted to start huge

businesses, which no single merchant could raise alone. It therefore

became inevitable for them to come together, pool their savings and

start these businesses as partners or co-owners. The contribution of

each partner to the enterprise was to be represented by a unit of

ownership. This was the precursor of shares.

And through this, 'joint stock' companies were born.

Initially, trading in shares began as informal "hawking" in the streets

of London. As the volume of shares increased with more companies

floating shares (giving people opportunities to buy their shares), the

need for an organized marketplace for the exchange of these shares

escalated. As a result, these traders decided to be meeting at a

coffeehouse, which they used as the marketplace. Eventually, they

took over the coffeehouse and changed its name to 'stock exchange'.

ThiThe origin of stock markets goes back a couple of centuries. The roots

of stock markets are to be found at the beginnings of the Industrial

Revolution that began in Europe about four centuries ago. Many of the

pioneer merchants of the industrial age wanted to start huge

businesses, which no single merchant could raise alone. It therefore

became inevitable for them to come together, pool their savings and

start these businesses as partners or co-owners. The contribution of

each partner to the enterprise was to be represented by a unit of

ownership. This was the precursor of shares.

And through this, 'joint stock' companies were born.

Initially, trading in shares began as informal "hawking" in the streets

of London. As the volume of shares increased with more companies

floating shares (giving people opportunities to buy their shares), the

need for an organized marketplace for the exchange of these shares

escalated. As a result, these traders decided to be meeting at a

coffeehouse, which they used as the marketplace. Eventually, they

took over the coffeehouse and changed its name to 'stock exchange'.

This was in the year 1773, and the first stock exchange, the London

Stock Exchange, was founded. Financial intermediaries (brokers,

fund managers, investment advisers, investment banks etc) and

other instruments like bonds were then to follow suit as an inevitable

consequence.

s was in the year 1773, and the first stock exchange, the London

Stock Exchange, was founded. Financial intermediaries (brokers,

fund managers, investment advisers, investment banks etc) and

other instruments like bonds were then to follow suit as an inevitable

consequence.

From RIBA Capital