According to Wikipedia, the first ever shares were issued by Dutch East India Company to be traded in Amsterdam Stock Exchange in the year 1602. It became the first company to issue stocks and bonds. London Stock Exchange started trading in stocks and bonds much later, in fact as late as 1688.
The Dutch have another role relating to Stock Exchange.
New York City of today was 17th century New Amsterdam, major city of the state of New Netherlands. It was a Dutch colony always at war with New England, the state of Connecticut, who would invade the city from the North. In order to protect New Amsterdam from enemy attacks, a huge wall was built which unfortunately, could not save the city. It was attacked and taken by the English who dismantled the wall. Instead, they built a street at the site of the wall. We all know that street by the name of Wall Street. It is the financial nerve center of the whole world.
The Stock Exchanges raise capital for businesses, mobilize savings for investment, facilitate corporate growth and create investment opportunities for small investors. At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy. Karachi stock Exchange is one of major bourses of the world.
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