What is a STOCKMARKET?

CHAPTER 5
STOCKMARKETS
A stock market is a public for trading of the company stock at an agreed price. It is considered the fast way to get the money from an individual and give it to the company that needs it.
The concept of stock trading comes from way back in 1600 , when the East India Company was launched, it needed money from the people for their voyages, without any guarantee of return .hence they approached the investors to whom they gave shares in return of the cash.
The idea was that the risk would be shared and divided among the investors, no fixed returns would be paid to them but if company progressed and did well then the investors will be benefited. The idea worked and the investors made profits and by the end of 17th century many more were entering the ball game of trade.
In 1801 the LSE (LONDON STOCK EXCHANGE) was formulated, the systems were formulated and there was no looking back after that. LSE also runs AIM (Alternative investment Market) for the young companies as “starter market “
Today, along with Britain, LSE runs the biggest exchange with 1800 + companies, which is called the “main market “.