so where can Mr B get money? banks are usually reluctant to lend as its risky venture and hardly any security. enter stock market, Mr B gives a pitch to public at large , he shows them basic business idea and ask for money and in turn people will get stake (stock) in his company. read more
The real birth of what we think about today as the stock market started way back in 1602, with the Dutch East India Company. Historians claim it to be the first company to ever offer shares to investors in exchange for a portion of its profits. read more
There are also options on futures, which function similarly to the options on stock. That market exists to allow market participants a cheaper and better way to fine tune their management of risk. Options markets at futures exchanges are the next big driver of volume growth. Futures markets don’t trade off exchange like stock and option markets do. read more