The world’s first stock exchange: how the Amsterdam market for Dutch East India Company shares became a modern securities market, 1602-1700 - Contents

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The world’s first stock exchange: how the Amsterdam market for Dutch East

India Company shares became a modern securities market, 1602-1700

Petram, L.O.

Publication date 2011

Link to publication

Citation for published version (APA):

Petram, L. O. (2011). The world’s first stock exchange: how the Amsterdam market for Dutch East India Company shares became a modern securities market, 1602-1700. Eigen Beheer.

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C

List of figures

VII

List of tables

VIII

List of maps

VIII

List of abbreviations

IX

Introduction

1

Context, historiography and theory 2

Scope and structure 6

Sources 9

Part I – Taking the measure of the market

1

A chronology of the market

17

Introduction 17

1602 – The subscription 17

1607 – The emergence of a derivatives market 20

1609-10 – Isaac le Maire 24

1609-18 – First dividend distributions 28

1611 – Exchange building 30

1622 – The relation between the company and its shareholders 32 1630s and 1640s – Intermediation and a changing composition of the trading community 36

1660s – Trading clubs and rescontre 45

Conclusions 52

2

Long-term developments

59

Introduction 59

Market activity 59

Number of traders 64

Share price and dividends 65

Divergent developments: Amsterdam and peripheral markets 68

VI

Part II – The organization of the market

3

Contract enforcement

91

Introduction 91

The legal framework 97

Private enforcement mechanism 107

Conclusions 114

Appendix – Short summary of court cases 115

4

Risk seeking and risk mitigation

118

Introduction 118 Counterparty risk 120 Portfolio risk 134 Conclusions 145

5

Information

148

Investors’ information needs in the first decade of the seventeenth century 150

Market reactions to information 156

The information networks of Christian and Jewish share traders 165

Conclusions 175

Conclusions

180

Epilogue – Reassessing Confusión de confusiones

186

Summary (in Dutch)

190

Appendices

196

Appendix A – Monthly share price Amsterdam chamber VOC, 1602-1698 196

Appendix B – Dividend distributions VOC, 1602-1700 204

Appendix C – Glossary 206

Acknowledgements

210

Bibliography

211

Primary sources 211

Published primary sources 211

Secondary literature 213