Want to learn about the First Shares and the First Exchange? It all started when countries in the New World began trading with each other. Meanwhile, explorer merchants wanted to commence big businesses but were lacking the required capital. The amount of capital was so big that no single merchant could afford it alone.
So, interested merchants who shared the same view stepped forward and formed a group known as investors by pooling their savings. This act made them business partners and co-owners of individual shares in their businesses to form joint-stock companies.
Joint-stock companies originated by dutch exaggerate to a feasible business model for struggling businesses. This led to the issuance of the first paper shares with the following advantage.
Those who are from the 21st century might find it difficult to imagine a time when all major companies were not listed on major or minor stock exchanges like the New York Stock Exchange or the Nasdaq. During that period of time, an exchange was not similar to investing or trading.
This company issued shares on paper as an exchangeable medium, enabled investors to exchange shares back and forth with other shareholders and investors. But the regulated exchange did not come into existence until the LSE (London Stocks Exchange) formulation. London Stock Exchange formed in 1773.
Although a state of great uncertainty hit the LSE’s immediate formulation, yet, it managed to survive and grow throughout the 1800s.
Genesis Of New York Stock Trade
The New York Stock Exchange (NYSE) formulated in 1792. Though the Philadelphia Stock Exchange (PSE) was the first formulated stock exchange in the US yet the NYSE comes out to be the fastest-growing stock exchange in the US and ultimately in the world. The NYSE played a physically strategic approach by locating among some of the most common and largest banks and companies and by situating in a major shipping port location.
All these features along with the establishment of listing requirements for shares in the exchange with hefty fees in the initial stage, enabling itself to be a wealthies institution in the world.