London: The First Truly Global Stock Exchange (18–19th Centuries)

Mehmet Baha Karan ()
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Mehmet Baha Karan: Hacettepe University

Chapter Chapter 6 in A History of Stock Exchanges, 2025, pp 167-202 from Springer

Abstract: Abstract The London Stock Exchange (LSE) was set up after the Glorious Revolution of 1688, which changed the political and institutional landscape in a way that gave Parliament more power. This event is important because it curtailed the power of the monarchy, which helped secure property rights and the rule of law. Investors liked these innovations, which led to new ideas in finance. In the 1700s, people started trading securities in coffeehouses, which were originally meant to be places to relax and get away from it all. The London Stock Exchange (LSE) was set up in 1801 and made it legal. It was very important to set up membership regulations, and these standards required vendors to strictly follow the principles of honesty when it came to the things they were selling. This change helped to bring more order to the market. The rise of joint-stock corporations and government bonds made it easier to invest and get involved in the market. The London School of Economics (LSE) grew a lot in the 1800s. This helped fund industrial growth and pay for global projects. The study's results showed that for financial markets to work well, there needs to be excellent governance, clear regulations, and institutions that include all important parties.

Date: 2025
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DOI: 10.1007/978-3-032-07788-2_6

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