How Old Is The Concept Of The Stock Market Trading?

July 18th, 2016 | by Ryan
How Old Is The Concept Of The Stock Market Trading?

The stock market is one of the most essentially discussed topics in the finance industry, and with the vast periphery that it holds; the discussion seems to be a never ending process. Although the entire stock market seems to be something that has evolved very recently, the history of it dates back to the late eighteenth century. So it is essentially a historic concept that over the years have evolved and taken a shape that it is seen nowadays.

stock marjet treding

Ram V Chary believes that if one finds some interest in the stock market, then the history of it is must be known to them. Over a couple of centuries ago, the private banks released some of their stocks in the market to earn some money. It was then a fashion, which allowed the rich class to get richer. It was later in 1972, when a group of twenty four merchants decided to form a group which was in the market came to be known as the New York Stock Exchange- and they decided to meet up in the Wall Street every day to buy and sell some stock among themselves.

With the industrial revolution taking place and the entire US finding some scope to grow in the world economy, the companies started selling their stocks in the market to earn some money that they could use for their expansion purpose. They had to meet with the rapid pace of economic growth and needed some money that could help them do so. The people or rather the merchants who bought these stocks became the shareholders of the company and had their shares in both the profits and losses that those companies faced.

Following this, a new form of investment business began to grow its popularity. The investors, who have already bought the stocks in the market, thought of selling them off to others at higher prices- and hence strategies came into being. It is the speculation of the stock owner that began to influence the investor’s decision- whether to buy or sell the stocks in the market. And these ups and downs actually had a deep impact on the fluctuations of the stock prices.

People started showing their interest in knowing what at all this stock is. To make things clear to them, stock is nothing but an agreement paper which declares that an individual has got the ownership over a small piece of the company. It is the boon of technology and science that has allowed the stock market to bring the entire matter to the common people. The hourly updates of the value of these stocks are now up on various investment sites and the visitors can have a complete track of it. The critical terms like Bull market and Bear market is even clear to all those who follow the stock market news.

But what incurs losses to these people is the lack of experience which people like Ram V Chary possess. There are multiple factors which need to be considered before taking once such crucial decision. It is indeed an easy way of making money, provided you know what to do, and most importantly when.