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Stock Market
By SOFIA of Cashvally.com
Stock Market
A market where the trading of company stocks and their derivatives is carried out is referred to
as the stock market. The company stock and derivatives are basically securities, which are
listed on the stock exchange along with the ones traded privately. The stock market trading
known as the stock market trading refers to buying and selling of shares and stocks of the company.
History
Fernand Braudel, a famous historian, suggested that in the 11th century Cairo, the Jewish and
Muslim merchants had set up all possible forms of trade associations and had vast knowledge of
all methods of payment. The people of France in the 12th century were concerned with the
management and regulation of the various debts of the agricultural communities on the behalf of
the banks. These men traded with debts and were the first stock brokers. In the end of the 13th
century, traders of commodities gathered at the house of a certain man called Van der Beurse and
in the year 1309 they came to be known as the "Brugse Beurse".
The idea of the institution spread around quickly and the institution opened up in the
neighboring countries of Amsterdam and Ghent.
The bankers of Venetian began trading in government securities in the 13th century. In year
1351, the government of Venetian spread rumors with the intentions of lowering the price of
funds of the government. Bankers from Genoa, Pisa, Verona and Florence followed suit of the
bankers from Venetian and started trading in government securities in the 14th century. All this
was feasible as these city-states were independent and were not under the rule of a monarch.
The people of Dutch started a joint stock trade company that enabled the shareholders to invest
in various business opportunities and to share the profits and losses of the business. The
Amsterdam Stock Exchange saw the first shares issued by the Dutch East India Company in 1602.
The Dutch East India Company was the first to issue bonds and stocks. The credit of the first
stock exchange, which introduced continuous stock trade, belongs to The Amsterdam Stock
Exchange (also known as the Amsterdam Beurs).
Nowadays every country has a stock market. The world's largest stock market is the New York
Stock Exchange (NYSE) in the USA. The stock trade is carried out in more ways than one, the most
efficient being online . The people who mediate the entire procedure of buying
and selling stocks are known as the brokers. The emergence of online stock market trading led
to the emergence of online stockbrokers.
Things to be considered before investing in the stock market:
* The shares should be bought at the lowest possible price, and sold at the highest. This is the
basic rule that needs to be followed in order to make profits. The success or failure of the
investor depends upon this particular move.
* The trend of the stock market should be well understood before investing.
* The reasons behind the bulls and bears of the market should be carefully studied and the
investment should be made only after this.
* Patience is an important virtue for the investor.
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