The Stock Market Saga

 WHAT DO YOU MEAN BY STOCK MARKET?

A stock market is a place where buyers and sellers come together to trade stocks or shares, which represent ownership in a business. These stocks can be publicly listed on a stock exchange or privately traded through equity crowdfunding platforms. Investors typically invest in stocks with a specific investment strategy in mind.

DIMENSIONS OF THE STOCK MARKET

The total market capitalization of publicly traded securities worldwide grew significantly from $2.5 trillion in 1980 to $93.7 trillion by the end of 2020. There are currently 60 stock exchanges globally, with 16 having a market capitalization of $1 trillion or more, which account for 87% of the global market capitalization. The largest stock markets by country are the United States, Japan, and the United Kingdom, with the US having the largest market share of approximately 59.9% as of January 2022.

HOW DID IT ALL START

a brief history of the development of stock markets started with the Courtiers de Change in 12th-century France who managed and regulated the debts of agricultural communities on behalf of banks. The idea of trading commodities and debts in a centralized location was institutionalized in 13th-century Bruges with the opening of the "Brugse Beurse", which quickly spread around Flanders and neighboring countries, leading to the emergence of stock markets in various countries, including Italy, France, Germany, Russia, Czech Republic, Sweden, Denmark, and Norway. Venetian bankers started trading government securities in the middle of the 13th century, and Italian companies were the first to issue shares. Joint stock companies emerged in the 16th century and played a crucial role in the colonization of the New World. Today, stock markets exist in almost every developed and developing economy, with the largest ones being in the US, UK, Japan, India, China, Canada, Germany, France, South Korea, and the Netherlands.

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