History of Money & Markets · Early markets
The Dutch East India Company: the first stock
1602: the VOC issues tradable shares and Amsterdam invents the stock exchange.
Step 1 of 4 · Overview15 min read ·
1602
VOC chartered; shares sold to the public
Amsterdam bourse
shares trade in secondary market
Innovations
limited liability, permanent capital, short selling, options
The Vereenigde Oostindische Compagnie (VOC) raised capital from the public for Asian spice voyages. Shares could be resold on the Amsterdam exchange, creating the first continuously traded stock. Traders soon invented short selling and forward contracts, and the first bans on them followed in 1610.
Key idea
Every concept on your desk (equity, secondary market, shorting, derivatives) existed in some form in Amsterdam by the early 1600s.Next: Practice