What is the world’s first stock?
What is the world’s first stock?
When it comes to understanding assets, understanding stocks is fundamental. Above all, we can learn to invest through history. The first stock was the East India Company, established in the Netherlands in 1602. It was the first corporation to raise capital from many people by issuing stocks, and it was a company that engaged in maritime trade.
The East India Company introduced the concept of stock and investment for the first time in Europe, enabling the royal family to engage in large-scale trade that finance alone could not afford. It overtook the United Kingdom and Portugal to become the best trading company.
Underlying the success of the East India Company lies a division of labor structure that separates management and investment. Large-scale trade is as profitable as it is when it succeeds, and the risk is when it fails.
Since it issues stocks and receives investment by dividing the budget from many shareholders, the risk is diversified and aggressive investment is possible.
Moreover, aggressive investment can generate huge returns. It was the success of East India Co., Ltd., that was able to catch two talkies: risk distribution and high return on risk.
Following the 17th century, the Dutch East India Company flourished, stimulating stock investment throughout Europe, and opening a new economic chapter. Stock exchanges were created as places to manage and trade stocks, and East India companies were established one after another in the United Kingdom and France, stimulated by the success of the Dutch East India Company. The corporate economy based on the corporation begins now.
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