The London Stock Exchange Introduced
The LSE, or London Stock Exchange, can trace its origins centuries back. It has over three thousand member companies, and it is one of the world's major stock exchanges. Its storied history and resistance to takeover bids has given it a status that other financial institutions aspire to.
It began in the seventeenth century when merchants began selling stock in order to make money to pay for trading voyages and other ventures. Most deals were done in the coffee shops that dotted the area, and one shop owner, named Jonathan Castaing, began listing daily exchange prices.
The stock market's popularity grew through the years, inducing Britain's government to pass laws governing trading and the operation of the exchange. It has moved from the coffee house, but the spirited atmosphere continues to this day.
Like other stock exchanges, the LSE is a company that provides information and facilities to those who trade and invest in stocks. It provides realtime information on share prices to members all over the world, and it trades derivatives, equities and securities in an organized manner.
To trade on the LSE, a company or a person has to be a member. This means they must meet certain requirements and pay either a monthly or an annual fee. Members have access to special trading software and LSE's team of financial assistants. Although it is headquartered in London, the exchange's trading system can be used anywhere in the world.
In 2007, the LSE merged with Italy's Borsa Italiana to become part of London's largest trading network. The company endured a takeover bid by NASDAQ, and it continually refuses all foreign takeover offers, preferring to stay in Europe.