THE FIRST STOCK EXCHANGE.December 18, 2020
A stock exchange, securities exchange, or bourse[note 1] is a facility where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds, and other financial instruments. Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as “continuous auction” markets with buyers and sellers consummating transactions via open outcry at a central location such as the floor of the exchange or by using an electronic trading platform.
Early history :
The term bourse is derived from the 13th-century inn named “Huis ter Beurze” (center) in Bruges. From Dutch-speaking cities of the Low Countries, the term ‘beurs’ spread to other European states where it was corrupted into ‘bourse’, ‘borsa’, ‘bolsa’, ‘börse’, etc. In England, too, the term ‘bourse’ was used between 1550 and 1775, eventually giving way to the term ‘royal exchange’.
There is little consensus among scholars as to when corporate stock was first traded. Some see the key event as the Dutch East India Company‘s founding in 1602, while others point to earlier developments (Bruges, Antwerp in 1531 and in Lyon in 1548). The first book in history of securities exchange, the Confusion of Confusions, was written by the Dutch-Jewish trader Joseph de la Vega and the Amsterdam Stock Exchange is often considered the oldest “modern” securities market in the world.. On the other hand, economist Ulrike Malmendier of the University of California at Berkeley .