Text 9 Dec The stock market: Then and Now

The stock market has grown since its inception in the early centuries where investments were simple and would only cover basic needs unlike what we see today. Technology has also helps the stock market grow to the point where it can be accessed by anyone and in any part of the world. When looking at the history of the stock market it is clear to see that it began in European countries and has extended to other parts of the world as well.

In the early days the stock market only had a few participants who included the government and individuals who were able to buy bonds that were being sold during the world war which helped the countries to finance the war. The bonds were to be paid back at a later date and acted as investment for those who had bought the bonds.  This also saw the entry of the private banks into the stock market arena in which they managed to sell stocks as well as shares in order to raise money.

These investing went on until an official stock market was set up in the United States and was known as the New York stock- exchange where people could invest in stocks as well as shares for a profit. Currently, this stock exchange is in existence with an extra two which are known as the NASDAQ and the American stock- exchange. Here, the stocks are bought or sold in a formal manner whereby they can be bought either through direct investments, stock brokers or retirement plans that are made up of dividends.

Lastly, there have been a few crashes in the history of the stock market such as the one in 1929 but it managed to bounce back and regain the confidence of the individuals who had invested in it previously.


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