Stock research

The first investors did not use money – time and physical labor were the initial investments. Partnership was most probably the initial form of joint investments, starting within the family unit and/or tribal groups of prehistoric peoples. Leadership was the next step in social evolution.

There is a funny similarity between the earlier times and today’s stock market. There always had to be a leader. The strongest, the more daring and the cleverest person was the leader, a chief to lead and organize the group. Here we have our first CEO.

Members of the group either submitted to the leader's wishes (Investment) through fear or from the expectation of rewards (Dividend). Everyone shared in the kill – the members of the tribe or family unit (Stockholders). Certain rights and privileges were granted to those who supported (Invested) the leader. See the similarities!

From the tribes and feudalistic groups evolved the initial forms of government. Most of the members invested through loyalty and service for the mutual benefit of all. Step by step society advanced, and without realizing it, through investing in each other, succeeded towards a civilization. Investment opportunities were not always available to the average person. As royalty and imperial forms of government evolved, special monopolies and privileges were granted to certain individuals or groups. In the 1600’s, land control right was granted to the favored subjects of the King of England. King James I in 1606 divided the east coast of North America between The London Company and the Plymouth Company. In today’s parlance, they were equivalent to share holders.

The open market and free enterprise as we know it today, began after the American Revolution. The founding fathers of the United States laid the foundation upon which the future progress of the world's economy rests. The Declaration of Independence and the Constitution of the United States laid the foundation for a modern civilization.

It was in 1791, under a buttonwood tree at the base of Manhattan, started something that is now referred to as the New York Stock Exchange started. They primarily traded in wheat, tobacco, cotton, sugar and sometimes even in slaves.