Shares are emissive securities. Shareholders receive a share in the company (joint stock company) and a percentage of the profits in the form of dividends. Shareholders also participate in the management and have the right to part of the property in the event of liquidation of the company.
History of the stock market
The foundation of the securities market dates back to the 15th-16th century. At this time, government securities began to be issued to cover the budget deficit. In 1556, the government securities exchange was established in Antwerp (Belgium). A hundred years later, the center of exchange activity moved to the Netherlands. Non-state shares in the 17th century appeared in Amsterdam, the stock exchange traded shares of the East India Trading Company. On the Amsterdam Stock Exchange, transactions with securities were carried out not only for cash, but also for futures transactions. Thus, the foundation of the speculative exchange market was laid.
From the end of the 17th century to the beginning of the 18th century, joint-stock enterprises began to appear in many European countries. London brokers entered into transactions on the over-the-counter (street) market. By 1773 the London Stock Exchange was formed. In 1724, in Paris, the government initiated the organization of a bill and stock exchange. After that, in Germany, Austria-Hungary and the USA, such varieties as universal, commodity-stock and specialized stock exchanges arose. In the 19th century, London and Frankfurt were the main stock markets in Europe.
Interesting facts
- In 2008, Mike Merrill issued 100,000 $1 shares and listed them on the stock exchange. On his own website, the American offered investors the right to make decisions regarding his life. Shareholders could vote on Michael's employment, his relationship with a girlfriend, transition to a vegetarian diet, and so on.
- A circus monkey participated in the experiment of the Finance magazine. Of the 30 cubes with the names of companies, Lukerya chose 8. The investment portfolio compiled by the primate, after ten years, turned out to be more successful than the choice of large investment funds.
- At present, securities exist only in electronic form, and paper shares were first printed in the city of Bruges (Belgium) in 1531. At that time, this place was the most important center of international trade. Five hundred years later, 1 in 7 Japanese, 1 in 5 Americans, and 1 in 2 Swedes own shares. For Russia, shares are a relatively new concept, only 10% of economically active Russians decide to invest in securities.
If you're planning to buy stocks, you can't do without a stock chart. Monitor the situation on the stock exchanges and make informed decisions. Successful investment!
