Who Invented the Stock Market?

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Who Invented the Stock Market?

Who Invented the Stock Market? ( History of Stock Exchange in India ):

Your mind also strike with this thought regarding “Who Invented the Stock Market?” am I right?

This blog will present in detail regarding the origin of the stock market.

Origin of Stock Market

  • At the start of 1602, the Dutch started with the concept of the stock market as at a time period many are struggling from a reliable business model that will make them money.
  • Thus, the Dutch East India Company started to print the first papers shares and it is not listed to any of the stock exchanges before but they are allowed to do the buying or selling their shares with the other shareholders or the investors.
  • With the increasing volumes of the shares and the participant of the share market, it becomes necessary to make an organized place for the exchange of securities.
  • And at the end, all the investors decide to meet up at the London warehouse as eventually, that was their marketplace to do the trading of the shares.
  • In 1773, they decide to rename the market place as the “Stock Exchange” and thus the invention of the very first stock exchange of the world took place on the London Stock Exchange.
  • Then in the year 1790, the American colonies came up with the exchange named as Philadelphia Stock Exchange.
  • As you all know that Wall Street is the most used word for the Stock Exchange and in 1792, there was a market establish near Wall Street where most of the stockbrokers meet and the trading happens over there.
  • The same Wall Street renamed the “New York Stock Exchange” (NYSE) in the year 1817.
  • The New York Stock Exchange (NYSE) was the successful stock exchange since its inception but the first stock exchange of the United States is the Philadelphia Stock Exchange.
  • This was about the stock exchange development across the world now let us peep about the beginning of the stock exchange in India.

Introduction of Stock Exchange in India

At the start, there were corporate shares that were started in Mumbai in the year 1830’s the stock of Bank and the Cotton presses.

In India also there was a start of the stock trading informally in the year 1850’s as many stock broker used to gather near hall of Bombay and they used to shift the places for trading.

Then later on they settled to a permanent place that is known as “Dalal Street” and with that the informal group becomes the formal while making the stock exchange in India in the year 1875 the oldest stock exchange in Asia “Bombay Stock Exchange” (BSE).

There were many other stock exchange established in India before but they didn’t work better for the country.

So, in 1993 they establish another stock exchange in order to bring more transparency in the stock market and the exchange was “National Stock Exchange” (NSE).

From 1994, the trading initiated in the National Stock Exchange (NSE).

In the year 1995, the BSE get to introduce the electronic trading platform known as the BSE on-line Trading (BOLT).

BSE establish its index that is Sensitive Index commonly known as SENSEX and it is comprises of 30 Stocks that represents all the sectors and working of the sectors represents the performance of the exchange.

NSE owes the index know as NIFTY and it comprises of 50 stocks in it and it had beat the BSE by launching the screen based trading and derivatives products and services.

Both these stock exchange follows the rules and regulation that is mentioned by the Securities and Exchange Board of India (SEBI) in order to maintain the transparency.

The online trading platform has been risen as the advance in the technology and also the increment in the brokers.

Major of the brokerage firms allows all the service and products that are traded in the stock exchange and gives the best service to their customer suitability.

If you want to know about in depth about the BSE and NSE then you can read our blog on “NSE India” and “BSE India”.

This was about the innovation of the Stock Exchange in the World and in India.


This was actually an informative blog on “Who Invented the Stock Market?” and everybody far now should know about the evolvement of stock trading in the world. You have also found it amazing by knowing some more details about the stock market and the stock exchange.

Since a long time before people are aware of the trading system and are participant in the stock market. In India also nowadays people show more interest in the finance world and of course in the investing or trading pattern in the stock market.

Hope that you find this interesting and useful for yourself and you should know more about the stock market in brief. So, make yourself flexible with the immense knowledge of finance.

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