Investing

How Investing Started

In 12th century France the courtiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers.

        This changed in the 1600′s, when Britain, France, and the Netherlands all chartered voyages to the East Indies. Realizing that few explorers could afford conducting an overseas trade voyage, limited liability companies were formed to raise money from investors, who received a share of profits commensurate with their investment.The Dutch East India company was the first Joint-Stock company. A Joint stock company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company's shares. 

Trading in the middle ages

Trading 

Before people used money to buy products, people traded items of value for things that they wanted to acquire. For example, if you wanted to get food, you would have to trade something for it, so many people got jobs and made things from raw materials to trade. Things people traded varied greatly, but some examples include, spices, clothing, paper, pearls, linen, and items like that.

 This is a good way of business for the seller, but not so great for the consumer. If the consumer didnt have anything of value, they couldnt get anything, but this also promoted jobs so people could make items of value. Also, this was very unsafe because travelers could get robbed of all of their goods. This lead to the creation of guilds to protect travelers. 

The federal reserve

The Federal Reserve

The Federal Reserve is the central bank of the United states. Its unique structure includes A federal government agency located in Washington D.C., and 12 regional reserve banks. These 12 banks are located in Dallas, Atlanta, Chicago, Boston, Cleveland, Kansas City, Minneapolis, New York, Philadelphia, Richmond, San Francisco, and St. Louis. With the Reserve structured this way, It balances centralization with Regional presence. The Federal Reserve provides the government with a ready source of loans and serves as the safe depository for federal monies. The Federal Reserve Banks were created as instrumentalities to carry out the policies of the Federal Reserve System. The Federal Reserve Banks issue shares of stock to member banks. However, owning Federal Reserve Bank stock is much different from owning stock in a private company. The Federal Reserve Banks are not operated for profit, so ownership of a certain amount of stock is, by law, a condition of membership in the system. The stock can't be sold or traded or pledged as security for a loan, and dividends are, by law, limited to 6% per year. 

the rothschilds

The Rothschilds

The Rothschilds are a family of world bankers who descended from Mayer Amschel Rothschild, who started his own bank business in 1760. Unlike most previous court Jews, Rothschild managed to use the wealth he acquired to establish an international banking dynasty through his five sons, that even surpassed the most powerful families of the era such as the Barings and the Berenbergs. The rothschild bank was at its height in the 19th century, where it is believed that the Rothschilds held the largest private fortune in the world, as well the the largest private fortune in modern world history. The Rothschild family fortune is believed to have slowly declined due to it being divided between multiple descendants. Today, the Rothschild businesses focus on a very diverse range of fields, such as finance, mining, energy, farming, wine, and charities. 

Rothschild Family Crest