The Psychology of Commerce – Part Six

The Shareholder Activist - The Psychology of CommerceTHE EMERGENCE OF STOCK TRADING

In 1801, the formal name London Stock Exchange was granted. It was made up of 550 subscribers and 100 clerks. Stocks became known as funds allocated by a company or the government from its capital for the purposes of financial investment.

This was a quite a radical concept, as it was able to distribute value in a way that previous was not possible, and provided an even more robust means for growth.

Shares became known as equal parts into which a company’s stocks are divided for their purchase by an individual or another company, who then becomes a shareholder and is entitled to a proportion of the company’s profits. Ordinary shares became known as equities.

Read Part Seven of this 7 part series next week.

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