The share market and the daytime adventure serial of the well to do would not be the stock market did not have it up and downs. Apart from the economic advantages and disadvantages of stock exchange the advantages that they provide a free flow of capital to finance industrial expansion, for instance, and the disadvantages that they provide an all too convenient way for the unlucky, the imprudent, and the gullible to lose their money there develop had create a whole pattern of social behavior, complete with customs, language, and predictable response to given event. By the same token, the New York stock Exchange is also a sociological test tube, forever contributing to the human special self understanding. Business ventures with multiple shareholder became popular with Commends contract in medieval Italy and Malingerer provide evidence that shareholder company date back to ancient Rome. yet the tittle of the world first stock market deservedly goes to that of seventeenth century. The two major company were the Dutch West India company, founded in 1602 and 1621. other company founded existed, but they were not as large and constituted a small portion of the share market. while the Italian city states produce the first transferable government bond, they
did not develop the other ingredient necessary to produce a fully fledged capital market.
As Edward String-ham note, company with transferable share date back to classical Rome, but this were usually not enduring endeavor and no consider secondary market existed. The Dutch East India company was also the first joint stock occurred on the Amsterdam Exchange. soon thereafter a lively trade in various derivative among which option and repose, emerged on the Amsterdam market. Dutch trade also pioneered short selling a practice which businessmanJoseph la Vega"s confusion was the earliest known book about stock trade and first book on the inner work of the stock market.There are now stock market in virtually every develop and most developing economics.