The history of the stock market begins in the 11th century in Cairo, Egypt. It is believed that during this time period, Jewish and Islamic merchants established a trade association that incorporated most of what we think of as modern credit and payment methods. In the twelfth century, agricultural debts were administered and regulated by the French courratier de change. The courratier de change could technically be considered the first “stockbroker” because he not only managed debt and payments, but also traded debt products. Another century passed and the development of the modern stock market continued. In due course, Venetian merchants and financiers added government securities to traded debts and investments. Many other major cities soon followed suit and began trading their own government securities. The first official stocks and bonds to be issued and traded were for the Dutch East India Company and were traded on the Amsterdam Stock Exchange in 1602.

Today there are several stock exchanges in almost all developed countries. Each of these exchanges has its own list of stocks and bonds it trades, and each is subject to its own business cycle. These cycles include periods of growth, stagnation, and recessions. The health of each stock market will depend on the health of local economies, national economies and, in some cases, international economies. Before selecting a stock market for your investment activities, make sure you understand the types of investments it offers and make sure you understand the investment rules, policies and procedures for that stock market.