Finance

History of stock market: A brief overview of the beginning

Today stock markets are a huge buzz. There is an end number of options of shares one can choose from the US markets. You got smart tools like a stock app, website, screeners that help you select the best stocks. Today placing optimum investments in stocks has become crucial. But ever wondered how it all started? And who created stocks? Let’s spiral down a little deeper in stock history.

Here is how the global stock market emerged:

1531 was the year where we saw the first stock market institution emerging. Set up in Antwerp, Belgium this institution dealt in government, business and even individual debts issues. Buying and selling of stocks didn’t exist until now. In the 1600s there was a huge revamp when France, Netherlands and Britain started sending overseas voyage permits. Consequently, there was a rise in overseas trade. Vendors and merchants were counting profits. Eventually, LLC (Limited liability companies) were formed. This was done to raise money from investors, who received a share of profits. In 1602, the Dutch East India Company was the first one to allow investors from outside to buy shares. They were also one of the first companies to issue bonds and stocks to the general public.

The top 2 US stock market indices and how they started:

  • Dow Jones Transportation Index:
    The world’s first stock market index was released by Charles Dow on 3rd July 1884. Prior to this revolutionary discovery, Dow was a newspaperman. Eventually, Dow along with Edward Jones founded Dow Jones & Company in 1882. In 1896, DJIA (Dow Jones Industrial Average) constituted the 12 largest companies in the US market.

  • The S&P 500:
    Started in 1957, the S&P 500 ( Standard & Poor’s 500) was a market index that tracked the value of 500 companies. These companies had their stocks listed on the New York Stock Exchange and the NASDAQ. During the first decade, the index saw a rise in the value of close to 700. This marked the aggressive economic bloom in the US market.

Now that you know how it all started, why don’t we follow up on some tips to stay profitable in the US shares markets?

  1. Diversify your portfolio:
    Having a broad portfolio serves as an advantage to beginners. This helps to minimize the risks. It is highly recommended to invest small amounts in varied stocks and shares. Your risk is divided and this is how you know which studied stocks worked for you best.

  1. Don’t go with the crowd:
    If you are new to investing, you are clearly going to trust the investors from the past and the present. It’s time you dodge the herd mentality and analyse what is right for you. Winvesta, essentially a US stock market app, helps start an investor with investing.|

  1. Lastly, have a realistic approach to setting goals:
    Hoping for the best while investing is ideal but don’t set unrealistic goals, as this may come back as a mishap your way.