The world is becoming a smaller place and it is often being called a global village in today’s times. People have an inborn wish to be a part of a distant business, and today this idea has gone into trading on an international level. As globalization is encouraged for trade reasons, the individual trader today finds it easier to be a part of a stock market across the globe.
If you want to understand a little more about trading stocks on international levels, it would do you good to know a little about the history of the same. It is said that the trading of stock was at first initiated in Cairo in the eleventh century. The Muslims of the region traded with the Jews who were merchants there. Then in the twelfth century farmers from France began trading their agricultural produce using debiting systems they were given by banks at the time. Their goods were looked upon much as we see market commodities today, and judged for their worth in the market at the time.
The Amsterdam Stock Exchange initiated an official and formal stock exchange in the year sixteen hundred and two. Dutch’s East India Company was the first company to list itself at this stock exchange in Amsterdam. And so this company holds the record of the first ever to hold a listed stock at any exchange. Things could have changed a little since then, but the idea behind a stock exchange remains very much the same to this very day.
Trading across borders
It is natural for a company to want to grow by trading across political boundaries. At present the European Union consists of twenty five countries. The stock markets of the continent are trying to facilitate legal trading across borders, and the system is under the governance of this union at present. Across the pacific, the New York Stock Exchange is trying to achieve the same. International trade with offshore companies is allowed at present, although restrictions are enforced so as not to let anything go wrong in the future. Cross border trading is not a new idea, and history tells us it is best monitored in any form, so as not to risk tensions.
However, countries today are trying to bring about a global change in the principles of trading stock where the restrictions on individual investors would be at a minimum ever. The traders in turn are waiting with their fingers crossed, and we suspect they won’t have to wait long. With globalization already a reality, it won’t be long when investors are allowed to freely trade with companies across the border. This will help the markets rise like never before.