03 — THE BIRTH OF THE MODERN STOCK MARKET

One of the biggest steps in financial-market history came in the Netherlands.

In 1602, the Dutch East India Company (VOC) issued shares that could be traded.

This helped create the foundation of what we recognize as a modern share market.

Amsterdam subsequently became one of the world's major financial centres.

Why was this important?

Instead of only buying physical goods, people could participate financially in a company.

Imagine:

A company needs $1 million.

Instead of one person providing all the money, the company can divide ownership into shares.

Now:

Company → Shares → Investors

This created a new form of market.

People could buy ownership and later sell that ownership to someone else.