The London Stock Exchange: A History

By Ranald C. Michie | Go to book overview

1
From Market to Exchange, 1693-1801

MARKET PLACE

There existed in London a securities market long before a formal stock exchange was ever established. As far back as the sixteenth century there is evidence of the buying and selling of shares, belonging to the few joint- stock companies then in existence. Though private negotiation between owner and purchaser was the normal means by which sales were accomplished, the growth in both the capital and the investors involved did lead to the use of public auctions. However, the ownership of shares remained concentrated within a very small group of wealthy individuals, and so there was little need for intermediaries to bring buyers and sellers together, and no justification for expensive and elaborate markets where business could be conducted on a frequent and regular basis. Typifying the time was the existence of the scrivener who combined in himself all the functions that would be performed later by the banker, lawyer, accountant, estate agent, and stockbroker. Land not securities formed the basis of investment before 1700, and credit not capital the principal object of finance.1

It was really not until the late seventeenth century that changes began to occur in the London securities market. There had already come into existence such substantial joint-stock companies as the East India Company before a flurry of activity in the 1690s transformed both the number and the capital. Before 1689 there were only around 15 major joint-stock companies in Britain, with a capital of £0.9m., and their activities were focused on overseas trade, as with the Hudson's Bay Company or the Royal African Company. In contrast, by 1695 the number had risen to around 150 with a capital Of £4.3m. Though foreign trade remained significant, there had been a significant broadening of areas of interest, with domestic projects rising to the fore, as with banking and water supply. It was in 1694 that the Bank of England was formed.2

____________________
1
W R. Scott, The Constitution and Finance of English, Scottish and Irish Joint-Stock Companies to 1720 ( Cambridge 1910-12), i. 44, 155, 161; A. C. Coleman, "'London Scriveners and the Estate Market in the Later Seventeenth Century'", Ec. H. R. 4 ( 1951/2), 230.
2
K. G. Davies, "'Joint-Stock Investment in the Later Seventeenth Century'", Ec. H. R. 4 ( 1951/2), 288, 291-2; Scott, Constitution and Finance, i. 460.

-15-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The London Stock Exchange: A History
Table of contents

Table of contents

  • Title Page iii
  • Acknowledgements vi
  • Foreword vii
  • Contents xi
  • List of Figures and Tables xii
  • Introduction 1
  • 1 - From Market to Exchange, 1693-1801 15
  • 2 - From Money to Capital, 1801-1851 37
  • 3 - From Domestic to International, 1850-1914 70
  • 4 - Shattered Dominance: The First World War, 1914-1918 143
  • 5 - Challenges and Opportunities, 1919-1939 170
  • 6 - The Changing Market Place Between the Wars 235
  • 7 - New Beginnings: The Second World War, 1939-1945 287
  • 8 - Recovery and Crisis: 1945-1949 326
  • 9 - Drifting Towards Oblivion, 1950-1959 363
  • 10 - Failing to Adjust, 1960-1969 423
  • 11 - Prelude to Change, 1970-1979 479
  • 12 - Big Bang 543
  • 13 - Black Hole 596
  • Conclusion 636
  • Select Bibliography 643
  • Index 655
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 674

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.