STOCK MARKET HISTORY

STOCK MARKET HISTORY

A few centuries ago, people ran businesses with their own money.

Their businesses were small and whenever they increased their scale of operation, they did it only with their own money.

It was not possible for all the business owners to build factories and industries with their own money.

Even bank did not lend the young companies the huge amount of capital that was required to start or extend their businesses.

Thus in the early 17th century, when the trading companies were exploring the newly discovered continents of Asia and America, they required a huge amount of money which their kings were unable to provide.

The wealthy people of their country were willing to lend the money but demanded huge interest.

So, in 1602, The Dutch East India company decided to raise their capital from the common people and became the first company to issue its shares in the AMSTERDAM STOCK EXCHANGE.