Trading History
Of The Share Market



Trading History - Throughout the history of humankind trading has been central to the continued existence and advancement of local communities. Most every culture in the world trades in one form or another.

Whether it’s food, labour, commodities, water, favours or fire, trading is the oldest form of human exchange. And this form of exchange was always seen as being beneficial to both parties in the transaction, a win/win situation if you like.

In terms of markets as we now know them, credit is given to the Dutch who set up the first stock exchange in the 1600’s and traded in tulip bulbs!

As in all markets at some stage euphoria, unrealistic expectations and greed take over which sends markets into extreme overbought situations, which causes the market to crash.

Such was the unrealistic euphoria in the first formalised stock market, just before the first crash on the Dutch exchange, the price for one tulip bulb equalled the price of an average residential house!

The American formalisation of trading began when the New York Stock Exchange was set up after the Buttonwood Tree Agreement in the 1790’s.

Australian’s were trading rum long before they set up the first exchange in 1786 and begun trading shares in the Bank of New South Wales.

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