A Brief History of Investment and the Modern Stock Market

Investment has existed in different forms for thousands of years. Records linked to the Code of Hammurabi around 1700 BCE show early rules around lending and commercial agreements. Modern investing developed rapidly in the 17th century as European shipping expanded. British, Dutch and French merchants needed capital for risky voyages to Asia. Investors funded these journeys and received a share of the profits when ships returned. Amsterdam became a major centre of organised investing in 1602. The Dutch East India Company became one of the first publicly traded companies, while institutions in the city made it easier for merchants to trade shares and manage payments. In the United States, the 1792 Buttonwood Agreement helped establish rules for securities trading. This later developed into the New York Stock Exchange, which grew from trading a small number of stocks and bonds to hundreds of listed securities after the Civil War.

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