The History of Stocks Trading 5.00 / 5 (100.00%) 1 vote

Trading has existed for many centuries.  If you are planning to enter the exciting world of trading, you may be interested in the history of stocks trading.

Trading Started In The 12th Century

The first known trading occurred in France during the 12th century.  Trading was for the purpose of regulating and managing debts.  These initial trades were between banks and agricultural communities.

Nearly a century later, government securities became instruments for trading in Venice.  This practice began expanding to other parts of Italy.

The first companies to deal in shares of stock were also in Italy.  They were followed by companies in Amsterdam and England.

The first stock exchange in Asia was the Bombay Stock Exchange.  It was established in Bombay in 1875.  The Bombay Stock Exchange still exists, listing more than five thousand companies.

The New York Stock Exchange

The first securities traded through the New York Stock Exchange were traded in 1792.  Two of the securities were bank stocks, and three were government bonds.

One highlight of the NYSE occurred in 1835.  With an average daily volume of 8500 stock shares, it was one of the NYSEs largest increases.  This was followed by a radical fall in average daily volume in 1837.

In more recent history, the first 100 million share day occurred in 1982.

Problems with Stocks Trading

Stocks can be inconsistent, but occasionally there have been radical declines.  The two most well-known stock market crashes occurred in 1929 and 2008.  In both cases, stockholders and non-stockholders alike became concerned about the effects of the crash on their financial security.

How Common Is Stocks Trading?

Recent statistics show approximately half of the American population own stocks.  However, this does not mean half the population engages in trading.  Many people own stock in the companies where they work.

Actual traders range from individuals who invest a few dollars in stocks to those who depend on investments as their primary source of income.  Traders range from beginners to experts.

How You can Benefit from the History of Stocks Trading

When you are new to trading, any information you obtain can be useful.  You can learn from the history of trading that trading can be unpredictable, and that you need confidence and patience.

In addition to following the stocks you purchase, you can stay alert to any major changes in the stock market.  When you work with a stockbroker, you can gain valuable information and advice.  You can benefit from your brokers experiences with the stock market.

The most important information you should gain from the history of stocks trading is the wisest approach is to expect the unexpected.  When you know radical changes can occur, you will be less likely to invest more of your money than you can afford to lose, and be more likely to research a particular stock before you buy it.