|
|
So stocks were actually invented by gamblers! Could this be the reason why we find it challenging to make money? Shortly after the establishment of the Netherlands, the president of the time wanted to create a large company, acquiring all the small companies to avoid competition and a vicious cycle. Establishing the company required 6.5 million Dutch guilders (Florins), but what to do if there was no funding? He had a friend, the most famous gambler in Europe at the time and later the owner of Europe's 18th-century nobility. The gambler said, "No problem, you can't establish the company like us. The company can proceed with the scheduled acquisition of all businesses." Where did the 6.5 million Dutch guilders come from? If he borrowed money from others, he would borrow or invest with the so-called support of the nation. However, the company's equity and board of directors would be controlled by investors! Since they didn't want to be controlled, what to do? This was the world's first joint-stock limited company, figuring out how to get money from the next level and establishing a model, and this model became the world's first [joint-stock limited company]. Before this, there was no such model structure in the world. Just like today's various PE equity private equity funds, many names are specially created, just like joint-stock companies.
In history, a genuine stock trading market emerged, where both buyers and sellers were represented by five experts specially appointed by the East India Company. Those who wanted to sell had their stocks taken back by the chief trader, and those who wanted to buy bought from the chief trader. Remember, this was not private or free trade. But stocks flowed in and out among the chief traders. On the second day of buying stocks, you would discover new news in this market: it's amazing, the East India's ship was raided by pirates, dividends are impossible! Panic spread with the news, and people started frantically selling stocks, causing prices to plummet, and they recovered stocks at floor prices. The next month, another announcement was made: the news was false, and it was discovered that the large gold mine had already been completely shipped back, and more money could be distributed. The market was exceptionally hot, and stocks soared. So, many people surprisingly bought at high prices. Later, as the market expanded, the old ways could not be sustained! Later, the trading market moved to the largest church in the Netherlands, and the bishop welcomed them with joy, contributing to the development of the Netherlands.
Most people were eager to buy and sell stock certificates. Few would remember that, as shareholders, they still had the most basic dividend rights. As members of the board of directors, what they should do is distribute dividends. However, once in the market, you often overlook this right. What we cared about was whether the buying and selling prices of this paper at the time would be profitable, how much it would rise or fall. So, three years later, the people who truly found dividends from the East India Company were less than 1/20 of the total shareholders! Would those who were entitled to dividends actually receive them? Of course not. Because they created the latest tools in the history of stocks at the time, called stock delivery and rights issues. You should imagine what they got. This was the birth of the world's first stock. |
|
Post time 27-12-2023 10:33:19