Evolution of Stock Markets – A Timeline
The evolution of stock market
Stock market, the Economic Barometer present in virtually all countries of the world, are not in the form that we see today. Also known as the pulse of economy or economic mirror of a country- they offer a platform that help in pricing securities, safeguarding transactions and drive a better allocation of capital amongst the savers and the spenders.
This Journey of Stock Markets started way back in 1600s, or even earlier (in a different form) with technological developments, emergence of new products, mergers & acquisitions and of course lessons from different frauds and crises amongst other factors that went unnoticeable over time, have resulted in what we see as today’s global stock markets which are more fair today than at any point in history.
Here’s a Timeline of crucial events that have played an important role in Stock Market Evolution.
With the introduction of new products, trading volumes on stock markets have skyrocketed globally in the past few decades. Also, technology has allowed a wider array of individuals and market participants. The advent of the internet and digital information exchange, has resulted in better information flow amongst the participants. Today, the NYSE remains the largest stock exchange of the world. It’s so large, in fact, that its market capitalization is larger than Tokyo, London, and NASDAQ combined. Going forward, we might see stock markets merging over the coming years. Some even envision that we’ll eventually see a single global stock market, although this appears to be unlikely.
Whatever the future may hold for stock markets, they’re going to continue playing an important role in global economies around the world for the long foreseeable future.