The Global Securities Market: A History

By Ranald C. Michie | Go to book overview

1
Origins, Trends, and Reversals: 1100–1720

MEDIEVAL FOUNDATIONS

The origins of the modern global securities market lie in medieval Italy where in the city states of Venice, Genoa, and Florence new financial arrangements emerged out of a growing trade between East and West. Advances included such developments as deposit banking, marine insurance, bills of exchange, joint stock companies, and transferable securities. An embryonic market in securities was created that extended beyond any specific location, in response to the financial requirements of both borrowers and investors, and to the need to make and receive payments over long distances. If a particular event can be taken to represent the beginnings of the global securities market it was the forced loan that Venice imposed on its inhabitants in 1171–2. Faced with a desperate need for money due to the exigencies of war, and unable to raise additional amounts from the normal sources of revenue such as taxation, the Venetian authorities extracted what they required from their own wealthy citizens. In return they promised to pay interest on the amount compulsorily borrowed until they were in a position to repay what they owed. These promises, in the form of interest-bearing bonds with no definite repayment date, then acquired a life of their own, being sold by those holders in need of money and bought by others seeking a regular income from their savings. Though initially regarded as of dubious worth, these transferable securities gradually gained acceptance as a secure form of investment that not only paid interest but also could be purchased and sold whenever the necessity for either action arose.

Between 1262 and 1379 Venice never failed to pay the promised interest at 5% per annum. As a result these bonds—known as prestiti—spread widely among long-term investors not only in Venice but also throughout Europe due to the financial network maintained by Italian merchant bankers. Other Italian city states such as Genoa, Florence, and Sienna followed the example of Venice and created debts in the form of interestbearing transferable bonds. In the 1340s, for example, Florence consolidated its outstanding debts into one interest-bearing and negotiable stock. These city states all had wars to finance, which added an element of uncertainty

-17-

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.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

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 Global Securities Market: A History
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Preface vi
  • List of Tables xi
  • Introduction 1
  • 1: Origins, Trends, and Reversals: 1100–1720 17
  • 2: Advances and Setbacks: 1720–1815 38
  • 3: New Beginnings and New Developments: 1815–50 60
  • 4: Exchanges and Networks: 1850–1900 83
  • 5: The Triumph of the Market: 1900–14 119
  • 6: Crisis, Crash, and Control: 1914–39 155
  • 7: Suppression, Regulation, and Evasion: 1939–70 205
  • 8: A Transatlantic Revolution: 1970–90 253
  • 9: A Worldwide Revolution: Securities Markets from 1990 297
  • Conclusion 333
  • Notes 341
  • Bibliography 376
  • Index 389
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?

Help
Full screen
/ 399

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access 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

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.