It's the big daddy and the big leagues. From a corporate perspective, anyone who's anyone is listed there, and it can be difficult for investors to imagine a time when the NYSE wasn't synonymous with investing.
But, of course, it wasn't always this way; there were many steps along the road to our current system of exchange.
You may be surprised to learn that the first stock exchange thrived for decades without a single stock actually being traded
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In this text i will look at the evolution of stock exchanges, from the Venetian slates, to the British coffeehouses, and finally to the NYSE and its brethren.
The Real Merchants of
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In the 1300s, the Venetians were the leaders in the field and the first to start trading the securities from other governments. They would carry slates with information on the various issues for sale and meet with clients, much like a broker does today.
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The First Stock Exchange - Sans the Stock
Belgium boasted a stock exchange as far back as 1531, in Antwerp. Brokers and moneylenders would meet there to deal in business, government and even individual debt issues. It is odd to think of a stock exchange that dealt exclusively in promissory notes and bonds, but in the 1500s there were no real stocks. There were many flavors of business-financier partnerships that produced income like stocks do, but there was no official share that changed hands.
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All Those East India Companies
In the 1600s, the Dutch, British, and French governments all gave charters to companies with East India in their names. On the cusp of imperialism's high point, it seems like everyone had a stake in the profits from the East Indies and Asia except the people living there. Sea voyages that brought back goods from the East were extremely risky - on top of Barbary pirates, there were the more common risks of weather and poor navigation.
In order to lessen the risk of a lost ship ruining their fortunes, ship owners had long been in the practice of seeking investors who would put up money for the voyage - outfitting the ship and crew in return for a percentage of the proceeds if the voyage was successful. These early limited liability companies often lasted for only a single voyage. They were then dissolved, and a new one was created for the next voyage. Investors spread their risk by investing in several different ventures at the same time, thereby playing the odds against all of them ending in disaster. (For more on how this practice plays out today.
When the East India companies formed, they changed the way business was done.
These companies had stocks that would pay dividends on all the proceeds from all the voyages the companies undertook, rather than going voyage by voyage.
These were the first modern joint stock companies. This allowed the companies to demand more for their shares and build larger fleets. The size of the companies, combined with royal charters forbidding competition, meant huge profits for investors.
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Because the shares in the various East India companies were issued on paper, investors could sell the papers to other investors.
Unfortunately, there was no stock exchange in existence, so the investor would have to track down a broker to carry out a trade.
In England, most brokers and investors did their business in the various coffee shops around London.
Debt issues and shares for sale were written up and posted on the shops' doors or mailed as a newsletter.
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The South Seas Bubble Bursts
The British East India Company had one of the biggest competitive advantages in financial history - a government-backed monopoly.
When the investors began to receive huge dividends and sell their shares for fortunes, other investors were hungry for a piece of the action.
The budding financial boom in England came so quickly that were no rules or regulations for the issuing of shares. The South Seas Company (SSC) emerged with a similar charter from the king and its shares, and the numerous re-issues, sold as soon as they were listed. Before the first ship ever left the harbor, the SSC had used its new-found investor fortune to open posh offices in the best parts of London.
Encouraged by the success of the SSC and realizing that the company hadn't done a thing except issue shares, other "businessmen" rushed in to offer new shares in their own ventures.
Some of these were as ludicrous as reclaiming the sunshine from vegetables or, better yet, a company promising investors shares in an undertaking of such vast importance that they couldn't be revealed.
They all sold. Before we pat ourselves on the back for how far we've come, remember that these blind pools still exist today.
Inevitably, the bubble burst when the SSC failed to pay any dividends off its meager profits, highlighting the difference between these new share issues and the British East India Company.
The subsequent crash caused the government to outlaw the issuing of shares - the ban held until 1825.
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Let the economic pundits argue whether or not we're in a recession.
Either way, consumers are cutting back on spending.
Along with this comes a desire to save money as well. But how? If you have a few hours to spare you can find ways to put $100 or more back into your pocket.
The money may not show up instantly, but the time and effort to create the savings is minimal. By year's end you will have saved a nice chunk of change. In some cases, your savings will keep piling up well after that.
Here are eight actions to add $100 or more to your savings:
1. Wash With Cold Water
Many people don't realize that the major cost of running a washing machine is the electricity it takes to heat the water. This accounts for 85% to 90% of the energy used.
Set your washing machine to run a cold wash/cold rinse cycle instead of a hot wash/cold rinse. This should have little impact on how clean your clothes get since washing machines and detergents have advanced enough that only the dirtiest and greasiest clothes now need a hot wash to get clean.
While a hot wash/cold rinse setting will cost about $100 to $150 a year if you do a load of laundry a day, the same number of loads with a cold wash/cold rinse setting will cost about $10 a year.
That's $100 in savings, and can be much more if you have children and do frequent wash loads. Best of all, it takes a split second to turn the knob on your washing machine to receive this savings.
2. Drink More Water
Many people have grown accustomed to having some type of flavor in their drinks -- whether that be soda, fruit juice, an energy drink or something similar.
While only drinking water (of the nonbottled variety) would be the ideal way to save the most money, there is about as much chance of that happening as you never eating another snack.
But even reducing the amount you drink can save quite a bit of money over time.
Instead of saying that you can no longer have the drinks you like, a simple way to reduce the amount you consume is to make a point of drinking three glasses of water a day.
The water will reduce your cravings for your usual drink, although not eliminate it, since you'll find you're just less thirsty during the day.
If you can cut out three drinks a week that usually cost $1, you have saved over $150 a year for the minute or so it takes to fill three glasses of water each day.
3. Compare Prices
The Internet has leveled the playing field when shopping for such things as auto insurance and homeowners insurance.
All it takes is a few minutes of inputting information to see if you can get a better deal. Since it's such a competitive field, you can often save hundreds a year -- especially if you haven't checked prices recently.
You can take this a step further depending on how dedicated you want to be by price comparing all your major purchases through sites such as PriceGrabber or Shopping.com and save hundreds more.
4. Use Coupons
Many people scoff at coupons because of the time it takes to gather and organize them.
Then there's the obvious nerdiness factor.
Truth is, even if you aren't the coupon-clipping type, you can still save quite a bit with them.
All it takes is five minutes to look at the ones that come with the Sunday paper, in the daily mail and any others that you happen across.
Cut out only those for the products that you already use and will purchase again and don't bother with any others. It only takes $2 each week in coupon savings to save more than $100 a year. When you think of all the coupons that go beyond groceries (pizza, oil change, haircut, etc.) it should be easy to save much more than this with little time or effort.
5. Start Haggling
While most people don't take the time to do it, virtually all the services you currently pay for are negotiable, including your cable TV, gym membership, phone bill and Internet service. While asking for a better deal may not work with all of these all of the time, you will get a discount a lot more times than you probably imagine.
All it takes is a 10-minute call to each service. If you can negotiate a $10 a month discount on each, that comes to $480 a year in savings for a few phone calls. It will probably end up being a lot more.
6. Get a Lower Credit Card Rate
While you're on the phone, be sure to make a call to your credit card company if you currently carry a balance on your credit card.
Many people don't realize that all it takes to lower your credit card interest rate in many cases is a simple phone call asking. A 2002 study found that over half the people who had good credit and called their credit card company to get a better interest rate were able to do so with the average person reducing the rate by one-third.
If you have a $5000 balance at 21% interest and were able to knock that down to 14%, you would save $350 a year. The 15-minute call will also knock years off the time it would take to pay the debt off.
7. Sell Stuff
You have a lot more stuff stored in your house than you will ever need or use.
A quick check of your closets, basement, garage and other nooks and crannies should produce boxes of stuff that you own, but no longer have any use for.
Instead of keeping them in perpetual storage, sell it all. You can do it online through sites like eBay or Craigslist, or have a garage sale and get rid of it all at once.
The basic guideline: If you haven't used something for the last year, you will probably never use it again.
Selling all this will keep your house less cluttered and will also bring in well over $100 in most cases.
8. Refinance Your Home
With interest rates at the lowest level in years, it's time to see if refinancing your home loan (or any outstanding loan you have) is worthwhile.
Knocking off a point can save thousands of dollars over the lifetime of the loan.
Even if you have a nonconforming loan -- or jumbo loan -- which made it difficult to refinance in the past, this soon may no longer be the case.
As part of the economic stimulus package that President Bush says he will sign into law this week, conforming loans that are backed by the Federal Housing Administration will increase to a $729,750 limit from $417,000.
Since nonconforming loans usually carry a higher interest rate, this will allow some with jumbo loans to refinance into a conforming loan.
While the difference in interest rates vary, a conforming loan can be a full percentage point less expensive since it is backed by the government.
A jumbo 30-year fixed loan that was 6.75% before the law, for example, would have a payment of $3,892 a month. Once enacted, the buyer would be able to obtain the same loan of $600,000 at an interest rate of 5.75%.
The monthly payment would be $3,502 which would save the borrower $390 a month, or $4,680 a year.
While refinancing is a bit more complicated than the other saving methods and will take a bit more time to complete all the necessary work, the amount saved per year is huge and thus well worth the effort.
Note: To make the savings last, you need to set the money aside that you save after completing the above tasks.
If you merely congratulate yourself for saving money, but don't separate the money into another account, it will likely be spent on other things and the savings will never materialize.
The European Climate Exchange (ECX) manages the product development and marketing for ECX Carbon Financial Instruments (ECX CFIs), listed and admitted to trading on the ICE Futures electronic platform. It is no longer a subsidiary of the Chicago Climate Exchange but rather a sister company. Both companies are owned by Climate Exchange Plc a holding company listed on the London Stock Exchange's AIM market.
ECX / ICE Futures is the most liquid, pan-European platform for carbon emissions trading, with its futures contract based on the underlying EU Allowances (EUAs) attracting over 80% of the exchange-traded volume in the European market. ECX contracts are standardised exchange-traded products and all trades are cleared by LCH.Clearnet.
More than 80 leading businesses, including global companies such as Barclays, BP, Calyon, E.ON UK, Endesa, Fortis, Goldman Sachs, Morgan Stanley and Shell have signed up for membership to trade ECX products. In addition, several hundred clients can access the market daily via banks and brokers.
ECX is a member of the Climate Exchange Plc group of companies. Other member companies include the Chicago Climate Exchange (“CCX”). Climate Exchange Plc is listed on AIM on the London Stock Exchange.
The current Chief Executive is Patrick Birley, son of Robin Birley (archaeologist)
Historian Fernand Braudel suggests that in Cairo in the 11th century Muslim and Jewish merchants had already set up every form of trade association and had knowledge of many methods of credit and payment, disproving the belief that these were invented later by Italians.
In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers.
In late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurse, and in 1309 they became the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent and Amsterdam.
In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens.
The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.
The Amsterdam Stock Exchange (or Amsterdam Beurs) is also said to have been the first stock exchange to introduce continuous trade in the early 17th century.
The Dutch "pioneered short selling, option trading, debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we know them" (Murray Sayle, "Japan Goes Dutch", London Review of Books XXIII.7, April 5, 2001).
There are now stock markets in virtually every developed and most developing economies, with the world's biggest markets being in the United States, Canada, China (Hongkong), India, UK, Germany, France and Japan
Guide to Invest in
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by Foreign Natural Persons and Legal Entities
This guide has been composed to serve the needs of prospective foreign investors who are willing to make an Indirect Investment (Foreign Portfolio Investment) in the
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History
Tehran Stock Exchange (TSE) opened in February 1967. During its first year of activity, only six companies were listed in TSE. Then Government bonds and certain State-baked certificate were traded in the market.
The Tehran Stock Exchange has come a long way. Today TSE has evolved into an exciting and growing marketplace where individual and institutional investor trade securities of over 420 companies.
TSE activities process could be divided into three periods:
A) Since the beginning of TSE activity until revolution (1967-1978)
In the period of 1967 to 1978 the number of listed companies and their capital raised from 6 with IRRs 6.2 b to 105 (22 private banks, 2 insurance companies, and 81 industrial corporations) with IRRs 240 b.
In 1967 the value of shares and bonds traded in the TSE, was IR 15 m, which increased to IRRs 34.2 b in 1978.
Actually, most of this development activity was due to the ratification of ownership development of manufacturing units' stocks and tax exemption for the listed companies' laws.
B) Since revolution until the end of imposed war:(1979-1988)
In the second period of TSE activities, two important events i.e. the Islamic revolution and Iraq's invasion were reduced exchange activities severely and exiting number of listed companies from TSE. In 1978 the value of shares traded was reduced to IRRs 4.1 b and this trend continued to 1982 and reached IRRs 9 m. From 1982 the trend of shares value increased and finally at the end of the period reached IRRs 9.9 b.
c) Since the end of imposed war until now (1989-2006)
In fact, TSE was taken into account as one of the most important executive mechanisms for national economy optimization in order to facilitate the equipment and active contribution of the private sector in the productive activities through transferring some of the state duties to the private sector, gathering and errant savings, all to be directed toward investment.
In 1989, economic authorities' attention to restarting of TSE activities increased the number of listed companies from 56 in 1988 to 422 in 2006. Furthermore, in 1988 the annual value of shares traded in the TSE, was IRRs 9.9 b, which increased to IRRs 44.8 b in 2006. During this period, especially between 2001 -2004, return of TSE investments grown up considerably and in 2003 reached to 131.4% which on that year was the highest return between WFE's members. TSE is the member of:
§ Federation of Euro- Asian Stock Exchanges (FEAS): joined as full member in 1995.
§ World Federation of Exchanges (WFE): joined as full member in 1994.
Legal structure
The new securities Act which is more comprehensive and advanced than the previous one was passed on November 16, 2005 by the Iranian parliament to support investor's rights and aimed at organizing, preservation and development of transparent, fair and effective market.
Under the new Act, the Securities & Exchange High Council(Council) and the Securities and Exchange Organization(SEO) was introduced and created as regulators of Iran capital market and TSE have been demutualized i.e. the membership organization entity was turned into a public joint stock company.
The Council is the highest authority and is responsible for all related policies, market strategies, and supervision of the market. The Chairman of the Council will be the Minister of Economy & Finance; other members are: Minister of Commerce, Governor of the Central Bank of Iran, President of the Chamber of Commerce, Attorney General, Chairman of SEO, representatives of the active market associations, three financial experts requested by the Minister of Economy & Finance and approved by the Council of Ministers, and one representative form each commodity exchange.
The SEO will be responsible for administration and supervisory duties, governed by the Board of Directors. The SEO's Board of Directors will be elected by the Council.
TSE overriding goal is to provide reliable facilities for the efficient and orderly conduct of trading securities. It is also entrusted to regulate the activities of brokers and safeguard the interests of the investing public through ongoing trading floor and broker supervision and overall market surveillance.
TSE is comprised of a seven-member Board of Directors that sets strategy and operating policy. These individuals, elected for a term of two years by shareholders' general assembly appoint a Managing Director. The job of the Managing Director is to manage the operations of the Exchange through various department heads that report to him. Managing Director's term of office is for a two-year renewable term.
Roles of TSE
Legislation establishing Tehran Stock Exchange (TSE) was formally enacted in 1966 and the TSE began trading on April 6, 1967. Forty years after the establishment of the TSE, a new Securities Act was passed in November 2005. Under this Act, the TSE have been demutualized.
As defined in the Article of Association, the TSE's primary roles are:
§ Establishing, organizing and managing of the Stock Exchange in order to trade listed securities
§ Listing of securities
§ Prescribing membership requirements for members and supervising their performance, and regulating their activities
§ To oversee the transactions of the Exchange listed securities
§ Monitoring the performance of issuers of the listed securities
§ process and disseminate the information regarding the securities orders and transactions of securities
Capital and Shareholders
The capital stock of the Company is equal to the sum of 150 billion Rials, which is divided into 150 million registered common shares of 1000 Rials each. Shareholders of the Company shall be classified as follows:
§ Class one: Persons who have received the license for brokerage activities in compliance with the Stock Exchange Establishment Law [1966] or those who shall receive the license for broker/dealer activities in compliance with the Securities Act [2005] and shall be accepted as the members of the TSE.
§ Class two: Financial institutions other than brokerage firms who shall receive the activity license from the SEO.
§ ss three: All persons other than class one or two above.
The maximum percentage of shares belonging to each class of shareholders defined above will be determined by the SEO. At the moment the maximum percentages are 40, 40, and 20 percent respectively
Hello
My name is Rouhollah Hosseini Moghaddam. I am a Expert in Tehran stock exchange (TSE), R&D department.
I studied Economic science(MA) in Tehran and now I am teaching in university.
I have 3 book about stock exchange and 4 article too.
