A General Overview Of Stock Market History
A stock exchange is an organization which is established to enhance the trade of stocks and securities among traders and brokers. Nowadays the stock market is a direct indication of the economic stability of a nation. People look to stock markets as a potential money earning venture. The rise and drop of the market is viewed with caution and concern by the experts.
In stock market history many historians believe that the first stock market came into existence in Italy, when Venetian bankers used government securities to conduct trades. This strategy was soon adopted by bankers from different parts of the world. The credit for introducing the concept of joint stock exchanges goes to the Dutch, who invited people to join the share market to purchase shares. Thus they invested their money in various businesses and eventually gained or lost money in them. The concept of continuous trade was introduced by the stock exchange of Amsterdam in the 17th century.
Wall Street, which is known as the world’s first organized stock market, was established on 1792 by John Sutton and 22 financial brokers. It was later renamed as New York Stock & Exchange Board in March 8, 1917. Today, there are important stock markets operating around the world. Some examples are the Bombay Stock Exchange, London Stock Exchange, NASDAQ Stock Exchange, and New York Stock Exchange.
Since the stock market is a very delicate field, any slight variations in the world business scenario can cause gigantic ripples various stock markets around the world. Therefore, there had been massive falls and rises for the stock market along its history. Some of its worst years were witnessed in the 19th century. One such drop was witnessed during the industrial revolution.
The 1929 stock market crash followed as a result of the general belief that the stock market could only bring profits. People who had no idea about the stock market invested heavily in the market hoping to reap huge benefits. But, sadly the market went down to counter the advancement it had made over the years, and the investors had to incur huge loses. This was followed by the Great Depression in the United States.
Another one of the worst years for the stock market was in 1970 which is generally referred to as the Bear market. This was also a result of the market trying to realign itself to its normal state from the rapid growth it attained over the preceding years. Therefore, it becomes quite clear that stock market history follows a specific cycle. People who are ignorant of the various trends of the market are usually susceptible to such severe setbacks.
Therefore, it becomes very crucial for someone to study the stock market history before investing in shares.
