Stock market is a marketplace where shares of companies are bought and sold by investors. Stock market helps companies to raise funds to grow on and also provide investors with the opportunity to easily buy or sell their ownership. It also represents business performance and economic well-being. Stock markets are considered important globally with major exchanges such as the NYSE and NASDAQ in the United States, Tokyo in Japan, Hong Kong, London and the NSE and BSE in India.
When Did the Stock Market Begin?
The first modern stock market was begun in 1602 in Amsterdam known as Amsterdam Stock Exchange. The Amsterdam Stock Exchange was created to trade the shares of Dutch East India Company, which conducted the world’s first Initial Public Offer (IPO).
Who Started the First Stock Market?
The first stock market, the Amsterdam Stock Exchange was started by a group of Dutch merchants, government officials, and VOC directors, including influential figures like Johan van Oldenbarnevelt and merchant financiers who supported the VOC’s global trade strategy.
Where was the First Stock Exchange Founded?
The first stock exchange was founded in Amsterdam, Netherlands, in 1611. It was created by Dutch East India Company (VOC) to help investors to buy and sell the shares of the company. The Amsterdam exchange did not only enable the exchange of shares, it also introduced many other stock exchange ideas that persist to date, including constant price quotes, the creation of brokers, traders and market-making which have defined all future stock markets.
How Did the Stock Market Begin?
- It Started With Trade and Merchants: In the 1500s, European traders needed money to support their long journeys to trade spices, silks, and other goods. Such journeys were dangerous and costly and an individual could not afford to fund them.
- Investors Began Pooling Money: Groups of investors began to combine their funds to finance ships and trading firms. In turn, they shared in the profits (or losses). This concept was the first one to be called as shares.
- First Company to Issue Shares: The first company to issue shares to the public was the Dutch East India Company (VOC) in 1602. These shares could be sold, bought or traded by people.
- Birth of the First Stock Exchange: To manage this trade, the Amsterdam Stock Exchange was established in 1602. This was the oldest stock exchange in the world.
- How It Grew: Other countries like London and New York copied this idea and founded the London Stock Exchange in 1801 and New York Stock Exchange in 1817.
Over time more countries founded stock exchanges and more companies got listed in exchange for the public to trade.
The Evolution of Stock Markets Through the Centuries
The evolution of stock markets through the centuries can be summarized in 5 main centuries. The centuries are 17th, 18th, 19th, 20th and 21st.
17th Century of Stock Market
- In 1602, in Amsterdam the first stock market in the modern world was established when the Dutch East India Company offered shares to be traded.
- The Dutch Golden Age made Amsterdam the center of trade and finance in the whole world.
- Basic concepts such as shares, dividends and a structured exchange were started here.
18th Century of Stock Market
- The trading of stocks rose in Europe and particularly in London.
- The London Stock Exchange (LSE) became organized towards the end of the 1700s.
- There were more financial instruments including government bonds and stock in companies.
- First efforts to regulate were done in the wake of huge speculative bubbles (e.g. the South Sea Bubble of 1720).
19th Century of Stock Market
- Through industrialization, the growing economy demanded high capital, increasing the importance of the stock market which led to the emergence of large exchanges across the globe.
- The New York Stock Exchange (NYSE) grew into a global leader.
- During this period trading was dominated by railroads, steel, and manufacturing companies.
- Markets were organized, which consisted of rules and a system of membership and formal trading floors.
20th Century of Stock Market
- During the 20th century, new regulations were implemented, such as SEC after crash measures such as the 1929 crashes.
- Computers penetrated the markets in the 1970s-80s.
- Electronic Communication Networks (ECNs) transformed floor trading where the barks were made on floors into screens.
- Derivatives, index funds, and ETFs became a necessity.
- International investment went off; there was a globalization of markets.
21st Century of Stock Market
- During the 21st century, technology dominated everywhere, such as High-frequency trading (HFT) using algorithms to trade in microseconds.
- Investing has been turned into an accessible option by using mobile apps and zero-commission brokers.
- Traditional emergence of cryptocurrencies, blockchain, and tokenized assets.
- Machine learning and the use of AI-based trading and alternative data became the norm.
- Markets are now 24/7, hyper-connected, and social media sentiment about them.
This timeline reflects how stock markets evolved from localized, physical trading venues to sophisticated, global electronic platforms, continuously adapting to economic, technological, and regulatory changes over four centuries.
History of Major Stock Exchanges
History of major stock exchanges which includes ASE, NYSE, LSE, BSE, TSE, HKEX, CSE, NASDAQ, SSE, NSE, MSE, INX
Amsterdam Stock Exchange (1602)
- The Amsterdam Stock Exchange, formed in 1602 is considered as the oldest stock exchange in the world.
- It was established by the Dutch East India Company (VOC) to trade their shares and bonds, making the beginning of formal security trading.
- Over a period, it evolved from commodity trading to sophisticated exchange, and in 2000 it merged with other European exchanges to form Euronext Amsterdam.
| Category | Information |
| Founded | 1602 |
| Country | Netherlands |
| Size (Market Cap) | Part of Euronext: €4.5 trillion |
| Number of Listed Stocks | 140 |
| Top Index | AEX |
New York Stock Exchange (1792)
- The New York Stock Exchange traces its origin to the Buttonwood Agreement, signed on 17 May 1792, where 24 brokers gathered under Buttonwood tree to formalize the security trading.
- This agreement set the basic trading rules and helped shift transactions away from public auctions.
- Later in 1817, it evolved into the New York Stock & Exchange Board, and eventually into NYSE ( New York Stock Exchange ).
| Category | Information |
| Founded | 1792 |
| Country | United States |
| Size (Market Cap) | US$28+ trillion |
| Number of Listed Stocks | 2,200 |
| Top Index | Dow Jones Industrial Average, NYSE Composite,S&P 500 |
London Stock Exchange (1801)
- London’s first regulated Stock Exchange, the London Stock Exchange (LSE) was officially formed on December 30, 1801, but its root goes back to the late 1600s.
- During the 1600s, brokers used to trade informally in Jonathan Coffee House and posted price lists on the wall in 1698.
- By 1801, they built a proper exchange at Capel Court, shifting informal trading to regulated exchange.
- Since then, the LSE has grown into a major global marketplace, especially for European and emerging-market companies.
| Category | Information |
| Founded | 1801 |
| Country | United Kingdom |
| Size (Market Cap) | US$3.4 trillion |
| Number of Listed Stocks | 1,900 |
| Top Index | FTSE 100 |
Bombay Stock Exchange (1875)
- Bombay Stock Exchange (BSE) was started on July 9, 1875, and it is the oldest stock exchange in Asia.
- It started with 22 brokers headed by Premchand Roychand who had a meeting under a banyan tree near the Mumbai Town Hall and then officially formed the Native Share and Stock Brokers Association.
- What began as an informal meeting in the 1850s shifted to Dalal Street and in 1957 the BSE was the first officially recognized stock exchange in India.
| Category | Information |
| Founded | 1875 |
| Country | India |
| Size (Market Cap) | US$5 trillion |
| Number of Listed Stocks | 5,600+ |
| Top Index | SENSEX (BSE 30) |
Tokyo Stock Exchange (1878)
- Tokyo Stock Exchange (TSE) was established on May 15, 1878, under the Meiji rule to establish a formal market to trade in securities.
- It was started by former Samurai selling government bonds and it quickly moved to stocks.
- The TSE was reestablished in 1949, and under the Securities Exchange Act it became the largest exchange in the world in terms of market capitalization in the late 1980s.
| Category | Information |
| Founded | 1878 |
| Country | Japan |
| Size (Market Cap) | US$6+ trillion |
| Number of Listed Stocks | 3,800 |
| Top Index | Nikkei 225 |
Hong Kong Stock Exchange (1891)
- Hong Kong Stock Exchange was founded as the Association of Stockbrokers in Hong Kong in 1891. It later evolved into the Hong Kong Stock Exchange in 1914.
- HKEX played a major role in directing capital to Hong Kong and Mainland China, eventually becoming one of Asia’s most important financial hubs.
- In 2000, it joined Hong Kong Futures Exchange and Hong Kong Securities Clearing Company to create Hong Kong Exchanges and Clearing Limited (HKEX).
- Today, HKEX helps international investors to enter the markets of China.
| Category | Details |
| Founded | 1891 |
| Country | Hong Kong (China) |
| Market Size | US$4–5 trillion |
| Listed Stocks | 2,500+ |
| Top Index | Hang Seng Index (HSI) |
Calcutta Stock Exchange (1908)
- Calcutta Stock Exchange (CSE) is the second-oldest Indian stock exchange after the BSE.
- It started with a small trading organization in Dalhousie Square and then transferred to its most recognized building, Lyons Range.
- It had a significant presence in the markets of eastern India between the 1930s and 1990s particularly in jute, tea and regional business.
- However, the falling volumes and regulatory problems finally caused SEBI to command its stop on the active trading and the exchange remains mostly inactive nowadays.
| Category | Information |
| Founded | 1908 |
| Country | India |
| Size (Market Cap) | Not significant (very low activity) |
| Number of Listed Stocks | 100–200 (many inactive) |
| Top Index | CSE-40 |
NASDAQ (1971)
- NASDAQ was founded on February 8, 1971 as the world’s first fully electronic exchange, created by National Association of Securities Dealers to modernize OTC trading.
- It started as an automated quotation system and shortly evolved into a trading platform, characterized by speed, transparency and innovation.
- In the boom of the 1980s-2000s, big tech firms found their new home in Nasdaq.
- It became a separate national exchange in 2006 and is presently operating internationally under the Nasdaq, Inc., which owns a number of exchanges internationally as well.
| Category | Information |
| Founded | 1971 |
| Country | United States |
| Size (Market Cap) | US$30 trillion |
| Number of Listed Stocks | 3,800–4,000 |
| Top Index | Nasdaq-100, Nasdaq Composite |
Shanghai Stock Exchange (1990)
- On December 19, 1990, China re-established the Shanghai Stock Exchange as part of China’s economic reforms and reopening to global markets.
- Shanghai had a vibrant securities market as in the late 1800s, but it was closed in 1949.
- The contemporary SSE was established to serve the expanding industries in China, provide an incentive to invest, and establish a contemporary monetary system.
- It has since been one of two major stock exchanges in mainland China, along with Shenzhen and operates under the CSRC.
| Category | Information |
| Founded | 1990 |
| Country | China |
| Size (Market Cap) | US$7 trillion |
| Number of Listed Stocks | 2,200 |
| Top Index | SSE Composite Index |
National Stock Exchange (1992)
- National Stock Exchange was established in 1992 to modernise the Indian financial markets and to bring transparency after years of outdated, uneven trading practices.
- With the support of the big financial institutions and under the Pherwani Committee, it launched the first fully electronic, on-screen based trading platform substituting the previous open-outcry model of trading in India.
- In 1994, NSE was fully operational and in 1996, it introduced the NIFTY 50. It is now the biggest trading by volume exchange in India and a main pillar of the modern market infrastructure in India.
| Category | Information |
| Founded | 1992 |
| Country | India |
| Size (Market Cap) | US$5.1 trillion |
| Number of Listed Stocks | 2,600+ |
| Top Index | Nifty 50 |
Metropolitan Stock Exchange of India (2008)
- Metropolitan Stock Exchange of India (MSE), which was formed in 2008 as MCX-SX, started as a currency derivatives platform and it was meant to introduce competition to the markets that had long been dominated by NSE and BSE.
- Following regulatory restructuring, it was known as MSE in 2015 and became a full-fledged stock exchange by SEBI.
- It has ventured into equities, F&O, debt and SME, but its volumes have been very low as compared to the major exchanges in India.
| Category | Information |
| Founded | 2008 |
| Country | India |
| Size (Market Cap) | Very small (minimal equity activity) |
| Number of Listed Stocks | Very few active listings |
| Top Index | Not applicable |
India International Exchange (2017)
- India International Exchange (INX) was launched on January 9, 2017, in GIFT City, a new international stock exchange developed by BSE to compete with international stock exchanges, such as Singapore, Hong Kong, and Dubai.
- It is designed to attract a foreign investors and NRIs to trade in accordance with global standards and is regulated by IFSCA and SEBI.
- India INX plans to transform India into a large global finance and trade centre as part of the vision of the GIFT City.
| Category | Information |
| Founded | 2017 |
| Country | India (GIFT City) |
| Size (Market Cap) | Trades GDRs, derivatives – not traditional stocks |
| Number of Listed Stocks | Not applicable (focus on global securities) |
| Top Index | India INX Global Index |
What is the Oldest Stock Exchange in the World?
The oldest stock exchange in the world is the Amsterdam Stock Exchange, now known as Euronext Amsterdam. It was established by Dutch East India Company in 1602 which had to ease trade of its printed stocks and bonds.
It was considered to be the first modern securities market since it was the first to conduct regular systematic trade of shares of a company that was publicly owned. It was the first actual stock exchange on the planet, thus the Amsterdam Stock Exchange instituted the modern day idea of a stock market and securities that can be traded publicly.
Global Stock Market Historical Events
There are seventeen global stock market historical events starting from the late 1630s to recent years. These major stock market historical events are mentioned below in brief.
Tulip Mania (1630s)
Tulip Mania was the first ever recorded financial bubble in the Dutch Republic during the 1630s, where tulip bulbs became extremely popular and started trading like luxury assets.
- In 1636-1637, some rare tulip bulbs sold at between 1,000 and 5,500 guilders which is equivalent to the price of a middle-sized house.
- In the course of several years individuals kept purchasing tulip bulbs without planting them, in order to resell them at profit.
In February 1637, confidence suddenly collapsed. Buyers stopped showing up at auctions, and prices fell sharply, many bulbs lost 80–90% of their value. The market crashed almost overnight.
South Sea Bubble (1720)
A major financial bubble in Britain involving the South Sea Company, a firm that promised big profits from trade with South America.
- In 1711, the South Sea Company took over a large part of Britain’s national debt in exchange for government-backed privileges.
- The company claimed to make huge profits by trading with South America.
- In 1720, people rushed to buy its share in order to make huge profits, because of which the share price rose nearly £1,000 from nearly £100.
By the end of 1720, investors realised that the company wasn’t making any real profits, which shook the investors confidence, and the share price crashed back below £200, causing massive losses across Britain.
Panic of 1873 – The Long Depression (1873–1879)
One of the most severe global economic crises of the 19th century, starting with a banking collapse and leading to years of economic stagnation.
- The most popular and powerful investment bank Jay Cooke and company of the U.S collapsed on September 18, 1873.
- These banks were heavily invested in railroads
- When profit did not meet expectations, railroads could pay the loan, collapsing bank Jay Cooke & Company .
- The New York Stock Exchange closed for 10 days, the first time in history, where many banks, railroads and businesses went bankrupt.
By 1874, one-third of all U.S. railroads went bankrupt and over 18,000 businesses failed in the U.S. between 1873–1875.
Wall Street Crash of 1907 (1907)
A sudden financial panic in the United States that nearly collapsed the banking system.
- In October 1907, the stock market dropped almost by 50% from its peak of 1906.
- A failed attempt to control the stock “United Copper Company” created panic in the financial market which led to collapse of several trust companies, especially the Knickerbocker Trust Company, one of the largest in New York.
- Many banks and trust companies ran out of cash.
- J.P. Morgan personally stepped in to stabilize the system because there was no central bank at the time.
Short-term interest rates spiked to over 100%, showing extreme money shortage.
The Great Depression (1929–1939)
The Great Depression was the most severe economic downtrend in modern history, starting with the wall street crash of 1929.
- On October 24, 1929 (Black Thursday), U.S. stock prices collapsed after years of over-speculation.
- This selling continued through Black Monday and Black Tuesday, wiping out billions of dollars.
- The U.S. market crashed about 85% from 1929 to 1932 and around 9,000 banks failed between 1930-1932.
This also affected world trade by nearly two-third during the early 1930s affecting U.S GDP by dropping 30%.
Post–World War II Expansion (1950s–1960s)
A long period of strong economic growth in the U.S and many other countries after the World War ll. This period is often called the “Golden Age of Capitalism.”
- From the late 1940s to 1960s, the U.S along with other Western Europe experienced steady economic growth, rising wages and low unemployment.
- The U.S. economy grew on an average at 3-4% per year, creating millions of new jobs, especially in manufacturing, construction and consumer goods.
- Middle-class income rose sharply, increasing consumer spending on cars, applications, TVs, and new technology.
These expansion reduced U.S. unemployment around 4-5% during the 1950s -60s.
Black Monday (1987)
Black Monday refers to a stock market crash On October 19, 1987, where global stock markets saw the biggest one-day market drops in history.
- From 1982 to 1987, the U.S. market was in a strong bull run, where the Dow Jones surged by 44% in just the first half of 1987.
- By mid-October 1987, the market became highly volatile and a wave of a sell-off began on Friday.
- On Black Monday (Oct 19, 1987), a computerized program started executing automated sell orders along with portfolio insurance linked selling and Index arbitrage sell pressure led U.S. stock market to fall by 22.6% in a single day.
The crash was fast and unexpected, spreading across the world within hours. Global markets such as Hong Kong were down 45%, Australia were down 41% and the U.K. (FTSE 100)were down 26%.
Nikkei Asset Bubble (1986–1992)
The biggest stock market and real estate bubble in Japan burst in the early 1990s, because of which Japan saw decades of slow growth.
- During 1986 to 1989, Japan’s stock market and real estate prices especially in Tokyo rose to extremely high levels.
- The Japan’s Index Nikkei 225 surged to nearly 39,000 points, marking an all time high.
- In 1990, the bubble burst and Nikkei fell more than 50% in just a few years. Real estate prices also collapsed by 40-60%.
After this crash Japan’s GDP slowed sharply where Nikkei made a low of 14,000.
Asian Financial Crisis (1997)
A major crisis where currency and banking failed. It started from Southeast Asia and spread across Asia and beyond Asia.
- On July 2, 1997, Thailand ran out of reserves and was forced to devalue the Thai currency, baht.
- The currency Thai baht fell from 25 baht/USD to over 50 baht/USD.
- This panic quickly spread to other nations, such as Indonesia, South Korea, Malaysia, and the Philippines.
- The currency collapsed, banks failed and the stock market creased.
Other countries such as Indonesia rupiah crashed from 2,500 per USD to 17,000 per USD at its worst, South Korea stock market dropped 50% and many Asian countries saw GDP fall of 5-15%.
Russian Financial Crisis (1998)
A severe economic and currency crisis that hit Russia in August 1998, leading to debt default and a sharp ruble collapse.
- On August 17, 1998, the Russian government defaulted on its domestic debt (GKOs).
- This led to devaluation of the ruble where the ruble fell from 6 rubles per USD to over 20 rubles per USD within a month.
- Banks failed, inflation surged and people lost savings as the financial system froze.
The Russian stock market lost nearly 75%, GDP fell by 5.3% and inflation jumped above 80% by the year end.
Dot-Com Bubble (1995–2000)
A sudden massive rise and crash in technology and internet-related stocks in the late 1990s.
- During the period between 1995 to 2000, investors poured money into internet startups (dot-com companies).
- The tech-heavy index NASDAQ rose from around 1,000 in 1995 to over 5,000 in March 2000.
- Many companies reported no profits, but their stock price surged due to belief in the internet transformation.
- In March 2000, tech stock collapsed and dot-com companies went bankrupt.
Due to this crash, NASDAQ fell about 78% and over $5 trillion in market values was wiped out. More than a half of the internet startups shut down where some companies lost over 90% of their stock value.
Global Financial Crisis (2008)
It was the worst economic crisis after the Great Depression. This crisis was triggered by the collapse in the U.S. housing financial system.
- In the early 2000s, U.S. banks lended out millions of home loans to people who often could not repay them.
- These loans were bundled into mortgage-backed securities and sold worldwide.
- The borrowers of loans began defaulting when housing prices stopped rising in 2006–2007.
- In September 2008, major financial institutions such as Lehman Brothers, AIG, Citigroup and Bank of America collapsed or needed rescue.
Because of these crises, U.S. housing prices fell by 30% nationwide, and the global stock market lost over $30 trillion in value.
European Debt Crisis (2010–2012)
A debt crisis where several European countries struggled to repay the government debt, impacting the stability of the Eurozone.
- After the 2008 global financial crisis, many European governments were left with a weak economy and high debt.
- In late 2009, Greece’s budget was in worse deficit than previously reported budgets, affecting investors’ confidence.
- The borrowing cost for Greece, Portugal, Ireland, Spain, and Italy surged.
- These countries needed a bailout from the European Union (EU) and the International Monetary Fund (IMF).
The European Debt Crisis nearly collapsed the euro, the shared European currency and peaked the unemployment in Greece by 27% in 2013.
Chinese Stock Market Crash (2015)
A sudden collapse in China’s stock markets due to a rapid, speculative boom and margin trading exploitation.
- China’s stock market rose extremely fast from mid-2014 to mid-2015.
- In June 2015, a bubble burst and China’s market crashed about 40% and around 1400 stocks were temporarily suspended for trading.
- By early 2016, the total loss reached $5 trillion.
This affected millions of retail traders and investors, especially those who have borrowed money or leveraged their position.
COVID-19 Market Crash & Recovery (2020)
The global market crash caused by the pandemic COVID-19, which is followed by one of the fastest recovery in history.
- Global market panicked during the spread of COVID-19 in 2020
- Markets like S&P 500 and Nifty saw a fall of more than 35%
- The Dow Jones recorded the biggest single-day fall of 11% on March 16 2020.
- Oil price went -$37 per barrel in April 2020 due to oversupply and lockdown.
- IMF reported 3.3% fall in global GDP
This COVID-19 market crash saw one of the fastest recoveries in history due to government stimulus and near-zero interest rates. By August 2020, Nifty and S&P 500 recovered fully.
Silicon Valley Bank Collapse (2023)
It is the second-largest bank collapse in U.S. history and the biggest since 2008 due to rising interest rates and poor risk management.
- On March 10, 2023, U.S. regulators shut down the Silicon Valley Bank after a sudden bank run.
- Silicon Valley Bank (SVB) used to serve startups, tech companies and venture capital firms.
- Due to slowed down of tech funding in 2022–23, many clients withdrew cash, forcing SVB to sell their assets to meet the withdrawal.
- SVB sold their long-term government bonds at a loss of $1.8 billion, which scared investors and depositories.
Within 48 hours, customers tried to withdraw $40 billion, making it the largest bank run in modern U.S. history.
Indian Stock Market Historical Events
There are ten major Indian stock market historical events. The Historical events are explained below.
Bombay Stock Exchange Founded (1875)
The Bombay Stock Exchange (BSE), established in 1875, is Asia’s oldest stock exchange.
- It started with 22 brokers headed by Premchand Roychand who had a meeting under a banyan tree near the Mumbai Town Hall and then officially formed the Native Share and Stock Brokers Association.
- What began as an informal meeting in the 1850s shifted to Dalal Street and in 1957 the BSE was the first officially recognized stock exchange in India.
Today, BSE is one of the world’s largest and most advanced stock exchanges, playing a central role in India’s financial system and capital markets with over 5,500 listed companies
Harshad Mehta Scam (1992)
It is one of the biggest financial scandals which involves manipulating the stock market using illegal funds from the banking system.
- Harshad Mehta, a stockbroker, found a loophole in India’s banking System to siphon large amounts of money which is estimated around ₹4,000–₹5,000 crore from the bank.
- Using this money he used to buy shares of a company in massive volume, artificially pushing stock prices.
- During that period, Sensex skyrocketed from 1,000 in 1990 to nearly 4,500 in April 1992 which was largely driven by his buying.
- Journalist Sucheta Dalal exposed the scam In April 1992, after which the market crashed by 40%.
ACC is one famous example jumping from ₹200 to ₹9,000 after Harshad Mehta’s buying.
Ketan Parekh Scam (2001)
A major Indian stock market manipulation scandal centered around artificially inflating the prices of select “K-10” stocks.
- Ketan Parekh was a stockbroker and fund manager who targeted 10-12 stocks known as k-10 stocks which included Global Trust Bank, Zee Telefilms, HFCL, and DSQ Software.
- He borrows money from banks, mostly Madhavpura Mercantile Cooperative Bank (MMCB) to buy these stocks in huge volumes, causing a sharp rise in price.
- In March 2001, the bubble burst after the market turned weak and MMCB failed to provide funds.
- Prices of K-10 stocks crashed, wiping out investors’ money.
The scam came to light after the stock market crash on March 1–2, 2001, and SEBI launched investigations.
Black Monday – Post Election Crash (2004)
A sudden and sharp fall in Indian stock markets on May 17, 2004, right after the General Election results.
- On May 17, 2004, Sensex crashed by 11% in a single day, the biggest single-day fall ever.
- This crash was triggered by uncertainty in election results, where the incumbent NDA government lost, and the UPA coalition (supported by Left parties) came to power.
- Investors feared that economic reforms and liberalization might slow down under the new government.
Nifty fell on that day 13% and trading halted twice due to lower circuit limits being hit.
Global Financial Crisis (2008)
It was the worst economic crisis after the Great Depression. This crisis was triggered by the collapse in the U.S. housing financial system.
- In September 2008, major financial institutions such as Lehman Brothers, AIG, Citigroup and Bank of America collapsed or needed rescue.
- This led to outflow from the Indian market, , causing the Sensex to crash from 21,000 to 8,500 a 60% drop.
- Indian companies struggled to raise money due to which Sectors like IT, metals, real estate, auto, and exports faced major slowdowns.
- India’s GDP growth fell from 9%+ to about 6.7% in FY2008–09.
The U.S. housing collapse triggered a global crisis that caused panic selling, heavy FII outflows, a sharp stock market crash, and a slowdown in the Indian economy.
Demonetization Shock (2016)
A major monetary event in India when the government suddenly banned high-value currency notes to fight black money, corruption, and counterfeit currency.
- On 8 November 2016, the Government announced a ban on ₹500 and ₹1,000 notes.
- Over ₹15.44 lakh crore worth of old notes were demonetized, where 99.3% of banned notes were returned to RBI.
- This affected cash dependent sectors, small businesses, and informal workers, agriculture.
India’s GDP growth fell from 8%+ to near 6% in the following quarters.
IL&FS Default & NBFC Crisis (2018)
A major financial shock in India was caused when IL&FS, a large infrastructure financing group, suddenly defaulted, triggering panic across the NBFC sector.
- In September 2018, the IL&FS (Infrastructure Leasing and Financial Services) and its subsidiaries failed to repay payments on loans as well as commercial papers.
- IL&FS had more than 91,000 crore in debts- of which most were borrowed funds through banks, mutual funds and insurance firms.
- The default generated panic that other Non-Banking Financial Companies (NBFCs) may also fail to meet their debts.
- Finance to the NBFCs dried up resulting in a credit crunch in other sectors such as real estate, automobiles, and SMEs.
NBFC lending growth dropped sharply from near 20% (2017–18) to below 10% after the crisis, whereas, debt mutual funds saw outflows exceeding ₹2 lakh crore across 2018–2019.
COVID-19 Market Crash & Recovery (2020)
A sudden global market collapse caused by the pandemic, followed by one of the fastest recoveries in market history.
- After rising COVID-19 cases and lockdowns in India, the market panicked.
- On 23 March 2020, the Sensex crashed by 38%, which was lowest since 2016, whereas Nifty fell below 7,600.
- The Indian market hit the lower circuit on 13 March 2020 for the first time since 2008.
- As COVID-19 spread and India entered lockdown, markets panicked.
This crash was triggered by massive selloff by FIIs, pulling out ₹60,000+ crore in March alone. India’s GDP contracted by 23.9% during this period.
Adani Group Rout (2023)
A sharp and sudden fall in the Adani Group stocks after allegations of market manipulation and fraud.
- On 24 January 2023, a U.S based research firm known as Hindenburg Research published a report accusing the Adani Group. Adani Group had allegations of accounting irregularities, stock manipulation, and improper use of offshore entities.
- This research triggered panic among the investors and led to a major crash in Adani stocks.
- Adani Enterprises, Adani Ports, Adani Green, Adani Transmission, Adani Power, and others fell by 40-70%.
This sell-off lead Adani Group lost over $150 billion in market value within weeks.
T+1 Settlement Rollout (2023–2024)
A major upgrade in India’s stock market settlement cycle to make the Indian market one of the fastest markets.
- Before 2023, India used to follow the T+2 settlement cycle, which means money and shares were transferred 2 working days after a trade.
- Starting January 2023, SEBI has started to shift stocks on a batched basis to a T+1 settlement system.
- All the leading 500 stocks were moved to T+1 by January 27, 2023.
- India implemented same-day settlement (optional T+0) on pilot basis by March 2024, making settlement speed go even faster.
India has become the first major market to fully adopt T+1 settlement for the entire equity market, reducing time from 48 hours to 24 hours or same-day for optional.
How Has the Stock Market Changed Over Time?
The stock market has transformed dramatically over time from its early days. The major changes include digital trading, increase in retail investors, 24/7 access, and rise of new investment trends.
- Since Open-Outcry to Digital Trading: The early markets used open-outcry systems in which traders communicated by screaming in the busy floors to buy and sell shares. Today, most trades happen electronically within milliseconds. The digital systems have enhanced speed, transparency and efficiency.
- Movement of Institutions to Retail Investors. In the past, most of the market activity was dominated by large institutions. Today, retail participation has been on a boom with the help of mobile trading applications, low-cost brokers, and increased access to information. This has altered the behavior, liquidity and intraday volatility of the markets.
- Globalization and 24/7 Access: The markets are now globally connected than ever before. Investors are able to trade in international stocks, ETFs, ADRs and derivatives nearly 24 hours a day. Through increased globalisation, economic events in one region can move markets worldwide instantly.
- Rise of New Investment Trends: With rising new investment methods, such as ESG Investing, Passive Investing and Algorithms, investing is now more data-driven, automated, and focused on long-term consistency rather than short-term speculation.
When did Online Trading Start?
Online trading started in the early 1970s with the introduction of electronic communication networks (ECNs), and the first actual online stock market formed was NASDAQ. NASDAQ was opened in 1971 as the first electronic stock market system in the world. NASDAQ offered automated quotation and enabled faster, more effective processing of trades, which preconditioned the further progress of digital trading.
The expansion of true internet-based online trading for the public began in the 1990s
- 1987: CME created Globex, the first major electronic system for trading futures and options which was launched in 1992.
- 1994: The first internet-based securities trading system, WealthWeb, was launched with K. Aufhauser and Company as the first client and allowed people to trade stocks online by use of the internet.
- 1996: Charles Schwab and Scottrade, the giant retail brokers, initiated their online trading services, which contributed to the broad use of online investing by retail investors.
By the late 1990s and early 2000s, online trading platforms had become the industry standard, revolutionizing how individual investors could access and participate in the stock market.
Major Stock Market Indices Historical Performance
The market performance of major indices in history is mentioned below in table.
| Index | Region | Long-Term Avg Annual Return | Notes |
| S&P 500 | USA | 9–10% | Broad U.S. market benchmark; strong long-term growth. |
| Dow Jones (DJIA) | USA | 7–8% | Blue-chip companies; stable, steady growth. |
| NASDAQ Composite | USA | Higher but volatile | Tech-heavy; strong gains driven by innovation. |
| Nifty 50 | India | 11–12% | High-growth emerging market index. |
| Sensex | India | 10–12% | Strong compounding over decades. |
| FTSE 100 | UK | 5–7% | Slower growth; stable, dividend-heavy. |
| Nikkei 225 | Japan | Modest | Recovering from decades-long stagnation. |
These indices represent different economies with varied growth patterns. The U.S. and India show stronger long-term returns, driven by innovation and emerging-market momentum, while the U.K. and Japan deliver steadier but slower growth.
Who Are the Pioneers and Influencers in Stock Market History?
There are many pioneers and influencers in stock market history globally. The top five are Joseph de la Vega, Medici Family, Benjamin Graham, Jesse Livermore and John Bogle.
- Joseph de la Vega (Amsterdam, 17th century): Author of the earliest book on stock trading, “Confusacion de Confusiones,” describing the Amsterdam Stock Exchange and developing some of the earliest concepts of speculation, market psychology and trading strategies.
- Medici Family (Florence, Renaissance): Reformed the banking and finance industry, including the introduction of bookkeeping in double-entry, letter of credit, and the global market-making as the international benchmarks of financial operations.
- Benjamin Graham (USA, 20th century): The Father of Value Investing, he created the principles of security analysis and value investing and groomed Warren Buffett and inspired generations of investors.
- Jesse Livermore (USA, early 20th century): Jesse Livermore was regarded as a pioneer of day trading and trend-following, therefore, his technical analysis style, and his ability to make money even at the time of the biggest market crashes made him legendary.
- John Bogle (USA, late 20th century): The inventor of index mutual funds and founder of The Vanguard Group, who democratized passive investing and made millions of people in the world able to invest in cost-effective, diversified portfolios.
Five most famous pioneers and influencers in stock market history in India are Sir Dinshaw Maneckji Petit, Premchand Roychand, Radhakishan Damani, Rakesh Jhunjhunwala, and Dr. Vijay Kedia.
- Sir Dinshaw Maneckji Petit: Petit played a central role in founding the cotton and textile industry of Bombay as a leader in corporate finance and assisted in the development of the Bombay Stock Exchange (BSE) in the late 19th century.
- Premchand Roychand: A big financier of Bombay in the 19 th century, he was instrumental in founding BSE, the first stock exchange in India, and funding major infrastructural projects, leaving an indelible mark in Indian finance.
- Radhakishan Damani: Damani is the founder of DMart and a highly influential investor who is also known to invest in stocks of Indian companies on long-term value basis and has mentored influential traders such as Rakesh Jhunjhunwala.
- Rakesh Jhunjhunwala: The Big Bull of India, he has changed the nature of retail investing in India by making visionary bets on Indian-based companies and making astute comments on the market.
- Dr. Vijay Kedia: A respected figure in long-term investing, under the so-called SMILE (Small size, Medium experience, Large ambitions, Extra-large market potential) investing strategy, he has been known to impact Indian portfolios in the modern period.
These individuals contributed foundational market innovations, shaped investment philosophies, and influenced both the structure and dynamics of stock markets globally and in India.
Who were the First Companies to Issue Stock?
There are four major companies to issue stock first, The companies are Dutch East India Company (VOC), British East India Company, South Sea Company, and Mississippi Company.
- Dutch East India Company (VOC): The first company to issue publicly issued stock was the Dutch East India Company which was established in 1602. It financed itself through the sale of shares to investors and established the first stock exchange in the world in Amsterdam, the forerunner of the modern equity markets.
- British East India Company: The British East India Company, which began shortly after the VOC, was also a joint-stock company, and it financed its trading expeditions. Although initially it was not publicly traded in this manner, it assisted in popularizing the concept of shared ownership and became one of the strongest commercial organizations at that time.
- South Sea Company: The South Sea Company was established in 1711 and the stock was offered on the basis of monopoly rights of trade between the company and South America. Its shares became the focus of the South Sea Bubble, the first of the great financial mania of history, and thus valuable early experience of financial regulation.
- Mississippi Company: Later in the 18th century, under John Law in early 18th-century France, the Madison Company issued shares on the basis of wishful thinking of profits of North American lands. High speculation led to the Missouri Bubble, which was a large crash and shaped the future financial policies and the potential risks of excessive speculation.
These companies pioneered the concept of joint-stock ownership and public trading, shaping the development of stock markets globally.
What is the Oldest Stock Still Traded?
The oldest stock still trading is Dutch East India Company which was founded in 1602. It was the first company in the world to issue shares publicly and it established the first formal stock exchange in the world based in Amsterdam, the Amsterdam Stock Exchange (now Euronext Amsterdam).
These shares were traded in the Amsterdam Stock Exchange in 1602 and are the oldest intact stock ever traded in history and the oldest stock market of any kind to exist. It was the first to introduce the idea of holding equity through the regulated market of share trading the company.
Best Books on Stock Market History
There are many books on stock market history, out of which the top 5 books are mentioned in the table below.
| Rank | Book Title | Author | Why It’s a Must-Read |
| 1 | The Great Crash 1929 | John Kenneth Galbraith | The definitive history of the 1929 crash — clear, insightful, and timeless. |
| 2 | Manias, Panics, and Crashes | Charles P. Kindleberger | Explains centuries of booms and busts; the best book for understanding market cycles. |
| 3 | Reminiscences of a Stock Operator | Edwin Lefèvre | A classic narrative of Jesse Livermore’s trading life; unmatched insights on market psychology. |
| 4 | Devil Take the Hindmost | Edward Chancellor | A sweeping history of financial speculation from ancient times to today. |
| 5 | When Genius Failed | Roger Lowenstein | Gripping history of LTCM’s collapse, showing how leverage and overconfidence can break markets. |
These books cover key historical events, market psychology, speculative booms, crashes, and the impact of leverage, providing comprehensive insights into stock market history and behavior.
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