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The Early History of the London Stock Exchange

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American Economic Association

The Early History of the London Stock Exchange Author(s): C. F. Smith Reviewed work(s): Source: The American Economic Review, Vol. 19, No. 2 (Jun., 1929), pp. 206-216 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/1807309 . Accessed: 06/06/2012 04:11
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THE EARLY HISTORY OF THE LONDON STOCK EXCHANGE Though the Stock Exchange, as a definitely organized body, was not founded until 1773, it had been in existence in the sense of a continuous and organized market for dealing in securities for about a century before that date. Like so many British economic institutions it owed nothing to deliberate creative action by the government, but it developed autonomously to meet the needs which the progress of industry and finance were creating. The increase in the amount of capital and the widening of the market, brought about by the commercial revolution consequent upon the great geographical discoveries, led to the growth of the joint stock company for carrying on trade and industry. While at first there appears to have been little transference of the capital so subscribed, the necessity for permanent subscriptions soon led to the rise of dealings in the shares

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