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Dec 1, 1400
Venice, the first modern investors.
In the 1300s Venice was a the first city to have a invest exchange similar to the modern day stock marcket and the first to start trading the securities from other governments. Investors in Venice would carry slates with information on the various issues for sale and meet with clients, much like a broker does today. -
Period: Dec 31, 1400 to
Investing time line
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Dec 13, 1531
First Stock Exchange. Antwerp Belgium
Belgium started a stock extchange in 1531, in the city of Antwerp. Brokers and moneylenders would meet there to deal in business, government and individual debt issues. The exchange used bonds and promissary letters as there were no real stocks. -
East India Companies
In the 1600s, the Dutch, British, and French governments all gave charters to companies with East India in their names. Nearly all wealthy people in these nations posesed a stake in the profit of the East Indies and Asia. In order to lesson the wrisk of loosing everything in ship lost at see shop owners would seek investors who would put up money for the voyage, outfitting the ship and crew in return for a percentage of the proceeds if the voyage was successful. -
East India Company and South Seas Company Collapse
The East India Trading Company was a government backed monopoly. As investors rushed to make an easy fortune, the financial boom in England came so quickly that were no rules or regulations for the issuing of shares. Other companies like the South Seas Company emmerged into the market after seeing the success of the India Company. The economic bubble burst after the SSC could not pay dividens off its profits. This collapse caused the government to ban the issuing of shares. -
British Government bans shares
After the crash of the South Sea Company the government baned issuing shares until 1825. -
London Stock Exchange
The first stock exchange in London was opened in 1773. Even though the exchange could not issue shares, the stock exchange became the primary exchange in the world up until the New York Stock exchange overcame it. -
New York Stock Exchange
The New York Stock Exchange was established on Wall Street. The location of the exchange led to the dominance the NYSE quickle obtained. The NYSE faced little serious domestic competition for the next two centuries. Its international prestige rose quickly with the expanding US economy and it soon became the most important stock exchange in the world, surpasing London. -
British share ban ended
British government outlawed the issuing of sares from 1711 to 1825. The ban ended after the NYSE became a growing power without a ban on shares. -
Roaring 20s
During the 1920s the stock market and US industry boomed, so did company shares on the stock market. Prices of shares went up every year. This was based on confidence that the boom would last. Many American people brought shares, hoping to make easy money. Some people borrowed money to buy shares; others bought ‘on the margin’ that is, only paying 10% of their value, hoping to make enough money to pay the full price later. The market continued on its bull for nearly a decade and tripled vaulue. -
Great Depression
In the United States, the Great Depression began after the stock market crash of October 1929, which sent Wall Street into a panic and millions of investors lost there shares. The next several years, consumer spending and investing dropped, causing steep declines in industrial output and rising levels of unemployment as failing companies laid off workers. By 1933, when the Great Depression reached its nadir, 15 million Americans were unemployed and nearly half of the country’s bank closed. -
NASDAQ
NASDAQ is a network of computers that do trades electronically. The introduction of an electronic exchange made trades are more efficient and reduced the bid-ask spread, a spread the NYSE hasnt profited from. The emerging competition from Nasdaq has forced the NYSE to adapt, by by listing itself and by merging with Euronext to form the trans-Atlantic exchange. -
Great Recession
Following the burst of the housing boom, America's fourth-largest investment bank collapsed in September 2008. The collapses quickly spread to other economies around the world, most notably in Europe. As a result of the Great Recession, the US lost more than 7.5 million jobs, causing its unemployment rate to double. Further, American households lost roughly $16 trillion of net worth as a result of the stock market plunge.