History and purpose of shares
The origin of share markets dates to around 400 years ago. Around the 1600s, there was a Dutcch East India company, like the British East India company. There was a similar company in the country of Netherland today, Known us Dutch East India company. In those time, people use to indulge in a lot of exploration using ships. The entire world map had not yet been discovered. So the companies use to send Thier ships to discover new lands and trade with far away places. The journey used to be of over thousand of kilometers abroad a ship. There was a huge amount of money required for this. Not one person possessed such amount of money individually in those times. So, they publicly invited to invest money in there ships. When these ships would travel long distances to go to other lands and come back with treasures from there. They were promised a share of these treasure money eventually. But this was a very risky affair. Become during those time, more than half of the ship failed to come back. They got lost, or broke down or got looted. Anything could happen to them. So investor realized the risky nature of this enterprise. So, instead of investing in a single ship, they prefered to invest in 5 - 6 of them. So that at least one of them had chances of coming back. One ship used to approach multiple investor for money. So, these created some what of a share market. There were open biddings of the ships on thier docks. Gradually, this system became successful because the money crunch faced by the companies was supplemented by the common people. And the common people got a chance to earn more money. You must have read in the history books about how rich the English East India company and the Dutch East India company became during those time. Today, each country has it own stock exchange.
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