For ordinary people, who are not familiar with the stocks and stock exchange, NYSE or New York Stock Exchange is the only place where all companies that are in the stock market business are listed. This is, of course, just partially true. Today, the NYSE is simply the synonym for investment. However, things were different in the past. In fact, the very first stock trading activities were familiar to the people despite of the fact that real stock trading system did not actually exist. I know, this might sounds a little bit strange, but this is how things functioning back then.
The great role in develop of the stock exchange system had moneylenders for Europe, who were very skillful in debt trading between each other. The principle was very simple. All of them wanted the same. They have tried to get rid of the highly unstable and risky debts and to exchange them for more stable ones. These old moneylenders were also skillful with trading with government debts. All these activities led to the situation where people started to sell those debts to third party- to the regular customers. This is the time of the first individual investor and the time when real stock exchange begins. Click here to find out more about the stock markets of today.
When we talk about the old European moneylenders, we just have to mention Venetians’ traders who were the superior merchants of that time. They are pioneers in this field because they first started to trade with securities from foreign countries and governments. In fact, we can freely say that these Venetians folks were the first brokers in the history.
However, the Belgians had the first stock exchange in the world and they founded it in 1531 in the city of Antwerp. This was the place where all traders, especially early brokers and moneylenders, gathered and traded.
According to the historians, the first company that functioned in the manner of the stock company was famous East India Company. In fact, it was a conglomerate of a number of different companies, which were paying dividends to the stock- holders. These companies were very successful and they provided huge profits to their owners. It seemed that everyone was happy with this kind of business. And they had a reason to be happy because profit and risk were split on the equal pieces.