How Stock Market Came Into Existence

kinjal jain
Created by kinjal jain (User Generated Content*)User Generated Content is not posted by anyone affiliated with, or on behalf of, Playbuzz.com.
On Sep 30, 2019
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How Stock Market Came Into Existence

Long ago when we just came into being we used to barter things. We progressed year by year. With the change in every decade customs got changed, the way of living life changed so did the business. We forego the idea of bartering things. The reason was we started finding things of greater value and it no longer made sense to exchange gold for copper. We started using the concept of currency gradually. It’s not like the situation was resolved then and there. The use of currency had to be standardized too. Anyone could print the currency and circulate the way they wanted. The government found a way to regulate it.
The Change
Everyone started using working wages to grow their wealth and make capital for themselves. One of the ways to become rich was so identified to be able to work for them. Some came up with the ideas which were yet to be discovered. Those who invented new things and different kind of business ideas are still remembered even after thousands of years, because their names are written in stone. But all of this required lot of money. To be able to make a business you need a steady flow of income. Everyone was not genius like these men. This was not the end of the road for them they had to do something after all everyone was created equal and with the same set of limbs. The banks were conceptualized but even they were not eager to oblige these men. So, they started lending out money from the people for an exchange of benefit from their profits.
This is how stock exchange came into being.
A stock is something which gives you a share in the profits of a company in foreseeable future. Once the company decides to go public they list themselves on the market. The first time of the company doing this is called as Initial Public Offering or IPO to sound cooler. There are bunch of brokers to carry out this function of selling and buying this commodity called as share. The place is called as Stock exchange. This is a brief understanding of how does stock exchange work but of course, there are deeper things that one needs to learn to fully understand it. Whenever you plan to invest in stock market, it’s advisable to delve deeper and understand the concept in and out before putting your buck in it.

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