It all started in 1611, when the need to fund the colonial powerhouse Netherlands' expensive expansion into Asia and Africa led to the introduction of the modern stock market in Amsterdam. Private investors, most notably those within the higher and middle classes, could pour their money into companies, such as the Verenigde Oostindische Compagnie (Dutch East India Company). These companies heavily invested into international trade and foreign expedition, and the rising policies of mercantilism at the time meant that these companies could always thrive when there was no competition, thus the shareholders profiteered greatly.

You also maybe wondering, how can a stock market work without the use of computers and electronics. Well, when the stock market was first set up, the only type of investment was shares. People would often meet up at a certain place every day and buy or sell shares of a company, they would receive profits on the spot in the form of cash (obviously). Hand drawn graphs were also used later on as a way of recording the price of shares of each company. Remember, at the time there was a very limited amount of companies so it would have been easier to buy and sell shares.

After seeing the successes of the Dutch in funding through their stock market, other European nations such as Great Britain and Spain founded their own market. However, it was not until 1792 when the United States opened the New York Stock Exchange, the biggest market today.

Throughout the roaring 1920s a long boom took stock prices to its highest of the time. From 1920 to 1929 stocks more than quadrupled in value. Many investors became convinced that stocks were a sure thing and borrowed heavily to invest more money in the market. And as most of our readers know, on an October day in 1929, things changed rapidly. The Great Depression started in many countries as a result of the Wall St. Crash.

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