I want to acquaint you with the history of the development of securities using pictures. The first security appeared at least eight hundred years ago. Since then, of course, tremendous changes have occurred in the stock market. By trial and error, little by little, this area of activity was gaining momentum. Currently, a strong opinion has been established that without securities and Exchange, a modern economy simply cannot exist. Read also how did the commodity exchange develop.
Even the Soviet Union, despite the centralized management of the economy, has used public bonds. Promissory notes and bills of lading vengeance used in foreign trade, and checks - both in external and in internal calculations. Even all known hotel "Intourist" was referred to as All-Russian Joint Stock Company "Intourist".
The first known type of securities can I call the bill, which was invented in Italy. It happened in XII century - namely, in 1157 year. At least, it is to this date include the first mention. It is likely that the promissory notes were in circulation, and even earlier time. They were designed for the exchange of coins or, as they said, "currency", later transferred to another location.
I want to remind you that it is Italy was the leading trading country in Europe in the Middle Ages, performing the role of a "commercial gateway." Through it were practically all trades between the East and the Christian West. From the Italian ports of ships departed with the Crusaders on their way to fight for the Holy Land. In addition, many Catholic countries, which then belonged almost all western European powers, subject to a tax, called the papal tithe. It was a lot of money, flocked to Rome from all parts of the Old World.
In the Middle Ages, not only royal mints were engaged in the production of money - almost every town had its own currency, minted coins on your taste. Traveling is accompanied by risks, as the roads in full wielded robbers - runaway peasants, knights ravaged, deserters from the numerous wars. This is due to the need for a controlled exchange rates and, if anything, in the "safe money transfers." Unfortunately, Webmoney did not exist and had to find other ways. In this regard, the whole class was formed, called changers.
Moneychangers doing that is exchanged coins, gradually combining with the movement of the exchange currency to another location. That is, they took the money in one place in a particular currency, and returned to the client in a different currency exchange and elsewhere. So, make the exchange in Lyons money-changers in the Burgundian kingdom, the customer can expect to receive the appropriate amount of money in Orleans - already in the kingdom of France.
In this case, the client receives from the money-changers sheet of paper with the exchange of the recording, which acted bill analogue. Also, money changer operation is written in the book for internal accounting. By the way, the modern name of the bank has gone to the same time - a bench on which the operations were carried out, was entitled "banca".
In the environment I had very strict laws. In no case shall the customer deception, if it happened, it broke the bench, and cast out of the moneychanger. Interestingly, the broken bench in Italian sounds like banca rotta - the bankruptcy of our. A fair code of honor, is not it?
That is why, the book in which shall be entered moneychangers write operations, considered a guarantee of the inviolability of the transaction and equated to official documents.
The estate has grown to the point that the whole bill of exchange have been held fairs. Among the most important fairs in Champagne isolated (XIII century), Besançon and Lyon (XIV-XVI century). The French province of Champagne, who was lying in the middle of trade routes between Britain, France and Italy took the promissory note fairs 6 times a year.
(Shampanskaya promissory notes Fair. XIII century)
In the region, fairs were held, massed merchants from all over Europe and all transactions are calculated using the bills. At the end of the fair, at a prearranged place and at a specified time, they were going and completed all operations on the promissory notes. This procedure and called "the bill fair." During the fairs were established courts, which, guided by the developed regulations imposed simple and strict sanctions against the debtor. He was detained and immediately transferred all his property in favor of the creditor has applied to the court.
The emergence of exchange
Working with securities of national importance for the first time began to be held on the Antwerp exchange in the XVI century. The operation consists of the sale of debt obligations the governments of Britain, Portugal, Spain, France and Holland. We know that all these countries have been protracted and fierce war, often - with each other. This is due to the fact that the rulers of these countries are actively borrowed money on the needs of the Army and Navy, and the source of funds was not so important.
(Vintage picture Antwerp Exchange. 1531 year)
Exchange opened in 1531 year. The display was a building that read: "for use by merchants of all nations and languages." Subsequently, the exchange looted Spaniards who fought against Holland. I want to note that the main cause of the securities was the need for war. Now the winner is often determined not by the art of warfare, and the ability to find money on it. Powerful in the financial plan of the country could easily defeat his opponents, of course, if the latter are not found its creditors.
First exchanges
I would like to tell a story about the London Stock Exchange from the XNUMXth century, when street trading began to develop. Thomas Gresham is considered the progenitor of the stock exchange.
He visited Holland, in 1566, the idea caught fire construction building, which could meet all the merchants and traders and to conduct their financial transactions. He was a rich man and could afford to build facilities at their own expense, and he suggested that the ruling elite. But for this he asked that a suitable plot of land for construction was issued at his disposal.
The needs of the building gathered 3500 pounds sterling, and the government has to deal and provided the required land for the construction work. Work in full swing for several years, and the room was ready for 1570 year. Despite the justified expectations of the construction of the exchange, the population is terribly annoying noise that was heard in the surrounding area. This led to the "expulsion of brokers" in 1698 year. Question about the new location has been resolved fairly quickly. They became a London coffee shop under the name "Jonathan".
In the coffee shop brokers were able to carry out important transactions and negotiations. In the same year 1698 the first time began to create price lists for securities. After 50 years after moving brokers in the coffee shop - in 1748 year - it burned down. Despite the complete destruction by fire, it was decided to restore the place of accommodation.
the so-called "Jonathan Club" was established in the year 1761. It was founded 150 brokers London Lodging in professional society in 1761 year. But after 12 years, they have expressed their desire to build a new facility for bargains. The building was built and named "New Jonathan." By the way, with the construction of this building was born on the London Stock Exchange, as in 1773, the brokers have decided to change the name to the "Stock Exchange". The building itself was much more modern and more comfortable, so on the first floor have decided to place a trading floor, and the second opened a restaurant.
With the opening of the stock exchange and to the middle of the XIX century in the British Empire major securities were government bonds. This was due to the fact that the law limits the creation of joint stock companies based on the story of the South Sea Company.
(Payment on shares of the South Sea Company)
Solely for the purpose of trading in government securities it was founded by the Vienna Stock Exchange in the year 1771. It was an ordinary government agency, which is an instrument to replenish the state treasury. Stockbrokers held positions in the public service and enjoy the priority right to conduct exchange operations. They had the right to install the brokerage rates - rate government securities - which were hung on the table at the entrance to the stock exchange.
Britain also belongs to the championship in the opening of a public company, which is an analogue of the modern. It was founded as a company of merchants under the name "Merchants - adventurers for the discovery of regions, islands, lands and unknown places."
But "Act of soap bubbles" was adopted in the year 1720, which declared illegal all unregistered stock companies. In this regard, the summer began to fall sharply in prices in the stock market. This led to a rapid fall in the price of shares of the Company of the South Seas. If in the beginning of September the price was 670 pounds at the end of the month it fell to 380 pounds.
9 September, the Bank bladed blade stopped payments, which resulted in a further reduction in the shares to 200 pounds. I would like to draw your attention that the adoption of the Act of soap bubbles was initiated is the South Sea Company to remove the competitors of the road.
Financial losses have affected the royal family and members of parliament, as well as the wider society. In fact, it was the first "financial pyramid" - the release of unsecured shares. Then the story was called "South Sea Bubble".
The first countries that came up with checks between the 16th and 17th centuries were Holland and the United Kingdom. Banks of Holland, in exchange for money that customers deposited for bank storage, issued them receipts to the bearer. With these receipts, the customers of banks paid their bills. The banks of Britain issued books to investors (analogues of modern check) with forms that were used for payments. All operations with checks for many years were regulated not by the legislative level, but by banks and commercial organizations. Later, the check system was adopted by other countries.
In our time, the stock market is associated with stock brokers, stock exchanges, speculation and fevers, but the stock market began to develop from the over-the-counter. For example, one of the first OTC transactions was conducted in Britain in 1568. Then, a part of the mining company's shares was sold. By the end of the 17th century, operations had become more complicated, trading transactions involving more than a hundred joint-stock companies began to take place on the market. Also, deals were concluded on state obligations, which included also contracts for a period of time - a prototype of futures. This contributed to the emergence of a new profession of a broker in exchange traded securities.
The history of exchanges, I would start to lead from the XVI century, when the current Belgian and then the Dutch city of Bruges was the house of Van der Bērze family (Van der Beurze). The family had a coat of arms with the image of three purses, as from Latin means Bursa purse.
Merchants who flocked to Bruges from all over Europe, often scheduling appointments near the mansion. Thus came into use the expression "to go to Bursa," which means a place to meet not only in Bruges, but also in other cities and countries. By natural morphological evolution, and we got the word "Exchange".
At the beginning of XVII century - namely, in the year 1611, it was founded the Amsterdam Stock Exchange, which were carried out and the commodity, and stock transactions. Trades are conducted not only bills and securities of national importance, but also the shares of the British East India and West India, as well as the Dutch trading companies. After the founding of the stock exchange, stock trading has been in the hands of only 20 people, and by the end of the XVII century, the number of people working with the shares at times grew.
The founder of the first specialized stock exchange is, again, the British Empire. It has been counting since 1773, when London brokers who traded in securities at the Jonathan coffee shop in the City area rented premises for the Royal Exchange. This room was first called the "Stock Exchange" - with the English StocExchange. I can not help but mention that the stiff-necked British have never adopted the term bursa, and even today they use the word exchange. Anyone could participate in the exchange, for this it was enough to pay 6 pence a day as a contribution.
Largest stock exchange in the present - NYSE - dates back to 1792 years. Prior to this, all transactions in New York, as well as in the UK capital, occurred in a coffee shop while 24 broker does not come under weighty plane tree on Wall Street and worked out an agreement which said the creation of the stock exchange. This exchange has been accessed, and Russian shares, up to the October Revolution 1917 years. After carrying out the transaction for the sale of the Great Siberian Railway bonds Emperor Nicholas II presented as a thank you exchange a marble vase Faberge.
Here was a way to securities market, starting with the XII-XIII centuries, and before the start of the XIX-th century. The whole world is intensively used checks and promissory notes, drawing on the stock exchange shares of companies and debt obligations. Major powers are actively making loans under the securities of its own production. Appeared profession changed brokers and stockbrokers. But the real growth of the stock market, we have seen only the beginning of the XIX century.
