Stock Market Origins
The stock market traces roots to 17th-century Amsterdam. The Amsterdam Stock Exchange, the world's first, was established by the Dutch East India Company to deal in its own shares and bonds.
Stocks versus Bonds
Stocks represent ownership in a company, potentially yielding dividends and voting rights. Bonds are loans to an entity, offering fixed interest payments with lower risk compared to stocks.
The 'Bull' and 'Bear'
Market trends are termed 'bullish' or 'bearish', stemming from how each animal attacks. Bulls thrust upwards, reflecting a rising market, while bears swipe downward, indicating a falling market.
Circuit Breakers Role
To prevent panic-selling, 'circuit breakers' halt trading on stock exchanges after dramatic drops. They provide time to assess and react to volatile market conditions.
Algorithmic Trading Surge
Around 75% of global trades are executed by algorithms, not humans. This shift has led to high-frequency trading, which can drastically affect market stability and efficiency.
Fractional Share Investing
Investors can now buy fractional shares, making stock investing accessible to those with limited capital. This democratizes investing, letting more people partake in potential gains.
After-Hours Trading
Stock trading isn't confined to the exchange's open hours. After-hours trading occurs through electronic communication networks, but with less liquidity and more volatility than traditional trading hours.
Where did the stock market originate?
London Stock Exchange
17th-century Amsterdam
New York Wall Street
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