Stock Exchange History & Information
A stock exchange is defined as a corporation that provides the opportunity for stock brokers to trade stocks and other securities within the institution. The history of stock exchanges goes back to the first years of the 17th century, although the first trading houses were centuries earlier.
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Early History
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The concept of a stock broker is thought to have originated in France in the 12th century with the establishment of the "courratiers de change," who regulated and managed agricultural debts for French banks.
Trading Houses
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The first trading house was established in Bruges, Belgium, when commodity traders gathered in a private house to do business. In 1309 the house was turned into a trading institution, which quickly led to the establishment of similar financial institutions in Northern Europe.
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First Stock Exchange
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In 1602 the Dutch East India Co. in Amsterdam was the first business to issue stocks and bonds. This led to the formation in Holland of the world's first stock exchange.
Empires
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During the 17th century, the empires of Portugal and Holland established stocks and bonds in the spices and shipping industries. As England, France and Spain replaced those earlier powers as world leaders, they began to dominate stock trading.
New World
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Following the American Revolution, the first American stocks and bonds were issued in the 1790s to offset debts accumulated during the war.
Regulation
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The New York Stock Exchange remained unregulated until the stock market crash in 1934 prompted Congress to introduce laws that were aimed at avoiding another crash.
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