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The Stock Market during the early periods of times, let's say when paper money didn't exist.

In early periods of times when exchange of services was scarce, so mainly as an exchange intermadiaries were the merchants themselves. So practically bartering took place. They exchange by some sort of generally accepted rules, the items that were abundant were less valuable than the items which were scarce, so for example, they exchanged 1 kilo of fur for 5 kilos of cut trees. As the time passed they discovered that this way of exchange is not effictient and they started ti create a new exchange medium, the gold. They started assigning values to items in terms of one universal item- the gold. A certain product was worth certain amount of gold. Later on the gold took a pressed cylindrical form, as that of now we know a coin. Thereby as far as I remember there was an example of the exchange between England and France, where it came to a situation when England hand more gold than stocks.

Nowadays the stock market is so much more sophisticated, it includes a lot of services, portofilios of big companies, stocks and commodities, but still, the stock is a market driven medium, which serves as an intermediator for the prices of items that are abbundant. SO lets say there have been discovered a new sources of oil supplies somewhere in Alaska, which increases the supply but on the other hand the market is not in need for an additional amount of oil, what happens here is a drastic price drop of the oil price, by this people are signalized to buy oil fearing not to miss the opportunity for paying less than they used to, in this way the supply decreases while the demand is being satisfied, while this happens the supply drops, thereby to stop this from falling to the point of no supply the prices go up again, so that some people should back off. This happens with most of the products and commodities that are controled by the stock exchange. It;'s the same for the currency, the values of shares of companies etc.

So what stock market does is regulated the consumption of goods and services throughout the world via the price mechanism.

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