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History Of Stock Market


 History of stock market trading in the United States can be traced back to over 200 years ago. Historically In 12th century France 'courraties de change' traded with debts on behalf of banks they could be called the first brokers. A common mis belief is that in late 13th century Bruges(World Heritage site of UNESCO) commodity traders gathered inside the house of a man called Van Der Beurze. Van Der Beurze had a building in antwerp(city and a municipality in Begium) was their primary place for trading. The idea quickly spread around Flanders(presently this is in the parts of Belgium, France and Netherlands) and neighboring countries. Soon Beurzen soon opened in Ghent(city and a municipality located in the Flemish region in Belgium) and Amsterdam(large city and the capital of Netherlands.

                                        In the middle of the 13th century, Venetian bankers began to trade in govt. securities. Bankers in Pisa,Verona, Genoa and Florence also began trading in government securities during the 14th century. Italian Companies were the first to issue shares. Companies in England and the Low countries followed in the 16th century. The dutch East India Company founded in 1602 was the first joint stock company result continuous trade in company stock emerged on the Amsterdam Exchange. In 1792 a meeting of twenty four large merchants resulted into a creation of a market known as the New York Stock Exchange(NYSE). At the meeting the merchants agreed to meet daily on Wall Street to daily trade stocks and bonds. In the mid 1800's United States was experiencing rapid growth. By 1900 millions of dollars worth of stocks were traded on the street market. 

                                        In 1921 after twenty years of street trading the stock market moved indoors.Industrial Revolution also played a role in changing the face of the stock market. New form of investing began to emerge when people started to realize that profits could be made by re-selling the stock to others who saw value in a company. this was the beginning of the secondary market, known as the speculators market.
                                      NYSE is so highly regarded among stock markets because they only trade in the very large and well established companies. Today the NYSE,AMEX,NASDAQ and hundreds of other exchange markets make a significant contribution to the national and global economy. In 1934, when following the great crash, Congress passed the securities and Exchange act. This act formed the Securities and Exchange Commission (SEC) Which throw the rules set out by the act and succeeding Amendments, regulates American Stock Market Trading with the help of the Exchanges.

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