history of stock exchanges
The study of the stock market, like any other field of knowledge, we begin with the description of the basic terms and concepts. The hour has come to settle in a series of new definitions, which will aid in the study of the rules of operation of the securities market.
To start make a little tour in the history of stock exchanges. Once in Italy came Belgian merchant van der Áóðñý to found there a profitable business. Eventually, he earned the respect of other merchants and bankers, and they began to hold meetings in the square in front of his house, and sometimes and at his home. From the name of the merchant ( Burse ) and the word «exchange». But this «friendly» exchange lasted not long. She quickly grew into a separate entity under the name of Antwerp exchange , and its building was adorned with the inscription: «To the benefit of merchants of all languages and Nations.» From this point begins the history of stock exchanges. Antwerp exchange functioned with a view to facilitate the conclusion of transactions, giving visiting merchants with an assortment of goods and facilitate negotiations. Its convenient location, great communication of its members and the rules, according to which all commercial relations were equal, quickly earned her worldwide popularity.
Continuing to get acquainted with the history of the stock exchanges, it should be noted that the word «exchange» can have several different definitions, and namely:
the totality of the agreements made in this place of deals (in the phrase: «tomorrow's exchange will be quiet»);
the totality of traders, which regularly appear in one place for mutual trade relations («crowded exchange»);
a place, where they are going traders («St. Petersburg stock exchange on the Avenue»).
In our days with the exchange connected the last two definitions, in which under the exchange shall mean either the place where a trade occurs, or the meeting of traders, which are subject to transactions and the formation of mutual trade relations. If to say briefly, the stock exchange contributes to contact a supply and demand, just like bazaars and fairs. Identify the similarity of the fair with the exchange can be an example of wholesale trade. Between them there are only three differences:
the participants of the fair are the people who travel to different cities and countries, while the the exchange focused regular visitors, as a rule, living not far from its location;
the fair is a big Bazaar, where you can meet a variety of goods of different quality. And on a commodity or stock exchange of goods, as such, is absent. It is stored in warehouses, and at the stock exchange are only its characteristics;
fair from time to time brings together the demand and supply, while the exchange contributes to the place of their permanent contact.
