How London Stock Trading Got Its Start

Copyright (c) 2010 John Howell

Did you know that London stock trading traces its roots back to the very beginning of stock trading itself? While today's London stock trading takes place at the London Stock Exchange and hosts a variety of British and international companies, it began as a way to raise money for two pivotal sea voyages.

In 1688, the East India Company needed money to get to India in the east and the Muscovy Company was attempting to reach China via the White Sea and needed financing. Both began raising money by selling shares to British merchants. These shares gave merchants a right to any profits eventually made by each company. Hence, London share trading was born and subsequent companies saw this model as a fantastic way to finance corporate growth.

By 1695, approximately 140 joint-share companies were London stock trading in two coffee shops in the city's Change Alley. Just one broker was working at the time -- John Castaing -- and he published the prices of stocks in a document called The Course of the Exchange and other things which was posted in either coffee shop. By the end of the century, some regulation became necessary in London stock trading as early market-rigging incidents became more common. All brokers were required to take an oath promising to act lawfully.

Today, London stock trading continues at the London Stock Exchange's official home at Paternoster Square, just steps from the Thames and St. Paul's Cathedral. The building opened in July of 2004 and features a specially commissioned sculpture called "The Source".

Elements of this sculpture float at random during London stock trading and settle into a box-like shape at the end of each trading day. The sculpture's original concept was to have the most commonly used words on the Internet float by, but after a number of profanities made their way into the elements, that idea was thrown out.

London stock trading also has its own coat of arms. The coat was commissioned in 1923 and features the words dictum meum pactum, which translates to "my word is my bond."

The exchange is currently part of the London Stock Exchange Group which is publically traded under the symbol LSE. As of late, the London stock market has also become known as the William Morris as founded by N. Aggett in 2010. Trading takes place daily betwen the hours of 8:00 and 16:30 every day of the week except for Saturday, Sundays, and national holidays.