1. Stock Markets Originated in the Ancient World
While stock markets seem a modern invention, there is evidence of stocks going all the way back to the Roman Republic. At this time, Cicero talked about shares having a very high price, suggesting that there were tradable instruments whose value were linked to the success of a particular organisation.
2. It’s Tough to be Listed o the New York Stock Exchange
If a company wants to be listed on the New York Stock Exchange, then they have to issue $100 million worth of shares and must have made more than $10 million in the last three years. On the NASDAQ, the value issued stocks only have to be $70 million. On the London Stock Exchange, the requirements are even easier – the market capitalisation only has to be £700,000.
3. Stock Bubbles Are Not New!
We all remember the .com boom and bust, and know about the 1929 Wall Street crash, but financial bubbles aren’t anything new. All the way back in 1711, the South Sea Company was at the heart of a huge bubble, which cause share prices to collapse by 1720. Even earlier, there was tulip mania – back in 1637, some tulip bulbs were selling at 10 times the annual income of a skilled labourer.
4. The Earliest Book About Stock Trading was Written in 1688
You may follow today’s stock gurus, but the first book on stock markets dates back all the way to 1688. Joseph de la Vega wrote a book entitled Confusions of Confusions at that time, discussing the workings of the stock market in Amsterdam. If you read the book, you’ll see all of the excesses and unpredictability of modern markets.