Back To Top

Trading Critique

Stock

Historical and Technological developments in Stock Trading

TC_hisNdTechDev
Stock trading is one of the oldest types of trading prevalent for centuries. Even now it is a major form of trading practiced and followed worldwide. In this article, let us see how stock trading has developed technologically for centuries.
  • The stock trading can be dated back to the 1300s, where the trading of debt bonds was dealt with in Venetia, Europe.
  • An exchange was started in Belgium around 1531 in Antwerp. These exchanges tradedpromissory notes and bonds. The real stocks were not present at the time. But these trades gave profits as the traders could earn in stock trading.
  • In1611, the Dutch East India Companywas the first publicly traded company. Amsterdam stock exchange was the first officially formed stock exchange. These trades mostly dealt with hedgingthe risks involved in the debt. Lenders tried to protect themselves from the risks involved in lending by hedging their risks.
  • Publicly listed companies came into prevalence with the East India companies of the British. Here, the investors invested their money and were paid back dividends from the profits of the company.
  • But there was no specific stock exchange present at that time. The stock of the East India Company was issued on paper in thecoffee shops of England. The cost of the shares will be posted on the door of the coffee shop or mailed to the investor.
  • London stock exchange was formed in 1773.
  • 1790 – The Philadelphia stock exchange was the first stock change that was created in the U.S.
  • New York Stock exchange was formed after 19 years from when the London stock exchange was formed, in 1792.
  • Many other European, American and Asian countries also started to develop their own stock exchanges.
  • Telephones and computers came into stock trading and changed the way stock trading was happening. In 1878, the first telephone was installed in the New York Stock Exchange.
  • TheNew York Stock Exchange was one of the biggest exchange in the world. It stands to be the biggest exchange even now internationally.
  • Though derivatives trading was practiced from ancient times, modern derivative trading in stocks was introduced around the 1970s.
  • NASDAQ was the first stock exchange that was made completely electronic. There was no physical space for NASDAQ rather it was the network of computers executing the trade electronically. This was the birth of the first electronic stock exchange in 1971 with electronic stock quoting system.
  • Human traders are now outperformed by Computer algorithms and programs. Artificial intelligence technology would play the main role in stock trading in the upcoming years.

As a final note, Stock trading has been through a lot of developments and it will be developing more in the future also. Stock trading will change its forms but the essence of it will remain the same. What do you think is the future of stock trading? Comment your answers below without fail.

To understand the basics of stock trading, you can read our article on Stock trading: All you need to know about.

If you have any doubts about stock trading, you can ask in the comments section. Our Trading Critique experts will answer it. If you have any personalized questions, you can ask your questions here. To get regular updates from tradingcritique.com please do Subscribe to our Newsletter.

I (68)
Investing
TradingCritique_57

What is an Index Fund and How to Invest in? [Expert Guide]

An index fund is a collection of investments that follows the performance of a group of companies or a market index. For example, the S&P 500. It is like a large basket of investments that mirrors the performance of these selected companies. Instead of choosing individual stocks, the fund follows preset rules set by companies like S&P Dow Jones Indices.

Read More »
I (65)
Investing
TradingCritique_57

Best Retirement Plans for Small Business Owners 2024

Small enterprises can attract seasoned and skilled candidates by providing straightforward, dependable, and adaptable retirement schemes. Certain types of plans can even provide tax benefits. Here, we will explore the different types of retirement plans available to small businesses and how to establish them.

Read More »
I (64)
Forex
TradingCritique_57

5 Steps to Trade Forex in USA 2024

Foreign exchange trading involves exchanging one currency for another. By profiting from fluctuations in exchange rates between currencies, forex traders aim to generate returns on their investments. It operates 24 hours a day as currencies are traded across time zones.

Read More »
I (63)
investment
TradingCritique_57

What is SIP and How SIP Investment Works?

Systematic investment plans offer a systematic approach to investing that allows individuals to invest a fixed amount of money in their preferred investment instruments on a regular basis. SIPs have several benefits including steady investment, versatility, the possibility of dollar-cost averaging, and the opportunity to start with small amounts of money.

Read More »
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Table of Contents