Daeyounfa

If you want to make a fortune at the stock market, it is actually a good idea to stop staring at the quarterly reports for a while and sit down and learn some basic stock market history. You have probably heard about famous incidents such as the stock market crash of 1929 and the Silver Thursday of 1980, but what do you know about all the other years of stock market history. How does the stock market work and why? These are two questions that are very hard to answer without taking a closer look at stock market history and the reason why stock markets emerged in the first place.

If you really want to understand the basics of modern stock markets, you can actually go back very far in history. Did you for instance know that courratiers de change were active in France during the 11th century where they managed and regulated the debts of agricultural communities on behalf of the banks? Eventually, these professionals started to trade in debts, thereby making themselves a very early form of brokers. By the mid 1200s, Venetian bankers were already trading government securities among themselves and a Venetian law from 1351 tells us that it was illegal to spread rumours intended to push down the price of government funds. Government securities were also traded in nearby Verona, Pisa, Florence and Genoa during the 14th century.

Filed under: Business by LiNuX