Page 7 - HP3A 011 Stock Market
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because the government was ruled by this company. It allowed transferable
a council and not a single individual. securities that included bonds and
The council knew what was good for stock shares, to be traded among
the people by communicating with brokers. This buying and selling of
each other. stocks became the basis of today’s
The first official stock exchange official stock market. The good side
company to ever exist was the Dutch of the stock market is that countries
East India Company. It was founded and individuals have been able to
in 1602, by the Dutch government. increase their industry. However,
India and Southeast Asian countries some unlucky individuals have lost
traded with this company after the all their money because they bought
Dutch government monopolized the and sold incorrect bonds at the
spice trade for 21 years. In 1611, the wrong time.
first stock exchange was started by Chapter 2: Purpose
