Sunday, April 12, 2009

History of Stock Trading

For buying stocks or selling stocks i.e. stock trading, it is not essential to know about its history but it is always better to get some additional information about what we are doing.

Some of the scholars tell that a meeting of the manufacturers and businessmen in France in thirteen century in a building, which was later called the "Bruges Bourse", is considered as the beginning of stock exchange. But as per the authorized information stock trading started in seventeenth century when a small group of brokers gathered in New York under a clump of trees with an aim to trade the shares. Their business of share trading continued weeks after weeks and months after months. Thought it was the start of New York Stock Exchange (NYSE) but it was named as NYSE in early 1900s after getting a formal location in New York and by this way the institution of the NYSE was formed.

After creation of NYSE a system of charging a fee for the services of transferring shares from one hand to another developed. That system of charging fee was so lucrative and appealing that it is being adopted by the stock brokers today in the same structure. This fee is known as brokerage.

Theoretically stock exchange is a market place where buyers and sellers of shares meet and get either buyers or sellers for the stocks they want to sell or buy. In old days a buyer or seller of shares had to go to stock exchange to do their business but now it is not necessary for you to go to stock exchange if you desire to buy or sell stocks as the special capacity of Internet to connect the people in different places at the same time there has come a major revolution in stock trading and you can trade your stocks from your home by sitting in front of your computer with an Internet connection.

To read more informational articles relating to stock trading please visit Stock Trading Blog.

You will also be interested in Day Trading

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