The exhibition of buyers and sellers of stocks that reflect ownership claims on companies is a stock market, equity market, or share market. It all began in the 17th century when the Dutch established money empires from the spice ships they brought from India via the port of Amsterdam, the largest in Europe at the time, as merchants and navigators.
Virtually all industrialized and most emerging economies now have stock markets, with the biggest markets in the world being the United States, the United Kingdom, Japan, India, China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea, and the Netherlands.
Here is a brief history of the stock markets that you need to know before getting into the investment.
1. The Stocks
A stock is a legal symbol of ownership in a business. When you buy stock, you are buying part-ownership of the business. In other words, you become a shareholder. A business will typically spread ownership to hundreds or even thousands of shareholders. Shares are sold when the company wishes to get cash. In a small business, it may be said that the owner has 100% of all shares. However, when a business grows beyond a certain size, it may require capital for expansion, and selling shares is the easiest way to do that.