1.
Stock exchange
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A stock exchange or bourse is an exchange where stock brokers and traders can buy and/or sell stocks, bonds, and other securities. Stock exchanges may also provide facilities for issue and redemption of securities and other financial instruments, Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as continuous auction markets, with buyers and sellers consummating transactions at a central location, to be able to trade a security on a certain stock exchange, it must be listed there. Trade on an exchange is restricted to brokers who are members of the exchange, the initial public offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market, supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks. There is usually no obligation for stock to be issued via the exchange itself. Such trading may be off exchange or over-the-counter and this is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a securities market. The idea of debt dates back to the ancient world, as evidenced for example by ancient Mesopotamian clay tablets recording interest-bearing loans, there is little consensus among scholars as to when corporate stock was first traded. Some see the key event as the Dutch East India Companys founding in 1602, economist Ulrike Malmendier of the University of California at Berkeley argues that a share market existed as far back as ancient Rome. One such service was the feeding of geese on the Capitoline Hill as a reward to the birds after their honking warned of a Gallic invasion in 390 B. C. Participants in such organizations had partes or shares, a concept mentioned various times by the statesman, in one speech, Cicero mentions shares that had a very high price at the time. Such evidence, in Malmendiers view, suggests the instruments were tradable, the societas declined into obscurity in the time of the emperors, as most of their services were taken over by direct agents of the state. Tradable bonds as a used type of security were a more recent innovation, spearheaded by the Italian city-states of the late medieval. While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fully fledged capital market, the Dutch East India Company became the first company to offer shares of stock. Control of the company was held tightly by its directors, with shareholders not having much influence on management or even access to the companys accounting statements. However, shareholders were rewarded well for their investment, the company paid an average dividend of over 16 percent per year from 1602 to 1650. Financial innovation in Amsterdam took many forms, by the 1620s, the company was expanding its securities issuance with the first use of corporate bonds
2.
Amsterdam
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Amsterdam is the capital and most populous municipality of the Kingdom of the Netherlands. Its status as the capital is mandated by the Constitution of the Netherlands, although it is not the seat of the government, which is The Hague. Amsterdam has a population of 851,373 within the city proper,1,351,587 in the urban area, the city is located in the province of North Holland in the west of the country. The metropolitan area comprises much of the part of the Randstad, one of the larger conurbations in Europe. Amsterdams name derives from Amstelredamme, indicative of the citys origin around a dam in the river Amstel, during that time, the city was the leading centre for finance and diamonds. In the 19th and 20th centuries the city expanded, and many new neighborhoods and suburbs were planned, the 17th-century canals of Amsterdam and the 19–20th century Defence Line of Amsterdam are on the UNESCO World Heritage List. As the commercial capital of the Netherlands and one of the top financial centres in Europe, Amsterdam is considered a world city by the Globalization. The city is also the capital of the Netherlands. Many large Dutch institutions have their headquarters there, and seven of the worlds 500 largest companies, including Philips and ING, are based in the city. In 2012, Amsterdam was ranked the second best city to live in by the Economist Intelligence Unit and 12th globally on quality of living for environment, the city was ranked 3rd in innovation by Australian innovation agency 2thinknow in their Innovation Cities Index 2009. The Amsterdam seaport to this day remains the second in the country, famous Amsterdam residents include the diarist Anne Frank, artists Rembrandt van Rijn and Vincent van Gogh, and philosopher Baruch Spinoza. The Amsterdam Stock Exchange, the oldest stock exchange in the world, is located in the city center. After the floods of 1170 and 1173, locals near the river Amstel built a bridge over the river, the earliest recorded use of that name is in a document dated October 27,1275, which exempted inhabitants of the village from paying bridge tolls to Count Floris V. This allowed the inhabitants of the village of Aemstelredamme to travel freely through the County of Holland, paying no tolls at bridges, locks, the certificate describes the inhabitants as homines manentes apud Amestelledamme. By 1327, the name had developed into Aemsterdam, Amsterdam is much younger than Dutch cities such as Nijmegen, Rotterdam, and Utrecht. In October 2008, historical geographer Chris de Bont suggested that the land around Amsterdam was being reclaimed as early as the late 10th century. This does not necessarily mean there was already a settlement then, since reclamation of land may not have been for farming—it may have been for peat. Amsterdam was granted city rights in either 1300 or 1306, from the 14th century on, Amsterdam flourished, largely from trade with the Hanseatic League
3.
Netherlands
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The Netherlands, also informally known as Holland is the main constituent country of the Kingdom of the Netherlands. It is a densely populated country located in Western Europe with three territories in the Caribbean. The European part of the Netherlands borders Germany to the east, Belgium to the south, and the North Sea to the northwest, sharing borders with Belgium, the United Kingdom. The three largest cities in the Netherlands are Amsterdam, Rotterdam and The Hague, Amsterdam is the countrys capital, while The Hague holds the Dutch seat of parliament and government. The port of Rotterdam is the worlds largest port outside East-Asia, the name Holland is used informally to refer to the whole of the country of the Netherlands. Netherlands literally means lower countries, influenced by its low land and flat geography, most of the areas below sea level are artificial. Since the late 16th century, large areas have been reclaimed from the sea and lakes, with a population density of 412 people per km2 –507 if water is excluded – the Netherlands is classified as a very densely populated country. Only Bangladesh, South Korea, and Taiwan have both a population and higher population density. Nevertheless, the Netherlands is the worlds second-largest exporter of food and agricultural products and this is partly due to the fertility of the soil and the mild climate. In 2001, it became the worlds first country to legalise same-sex marriage, the Netherlands is a founding member of the EU, Eurozone, G-10, NATO, OECD and WTO, as well as being a part of the Schengen Area and the trilateral Benelux Union. The first four are situated in The Hague, as is the EUs criminal intelligence agency Europol and this has led to the city being dubbed the worlds legal capital. The country also ranks second highest in the worlds 2016 Press Freedom Index, the Netherlands has a market-based mixed economy, ranking 17th of 177 countries according to the Index of Economic Freedom. It had the thirteenth-highest per capita income in the world in 2013 according to the International Monetary Fund, in 2013, the United Nations World Happiness Report ranked the Netherlands as the seventh-happiest country in the world, reflecting its high quality of life. The Netherlands also ranks joint second highest in the Inequality-adjusted Human Development Index, the region called Low Countries and the country of the Netherlands have the same toponymy. Place names with Neder, Nieder, Nether and Nedre and Bas or Inferior are in use in all over Europe. They are sometimes used in a relation to a higher ground that consecutively is indicated as Upper, Boven, Oben. In the case of the Low Countries / the Netherlands the geographical location of the region has been more or less downstream. The geographical location of the region, however, changed over time tremendously
4.
Euronext
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Euronext NV is a European stock exchange seated in Amsterdam, Brussels, London, Lisbon and Paris. In addition to cash and derivatives markets, the Euronext group provides listing market data, market solutions, custody and its total product offering includes equities, exchange-traded funds, warrants and certificates, bonds, derivatives, commodities and indices. As of 2017, Euronext was the largest in continental Europe with 1,300 issuers representing a €3 trillion market capitalization, Euronext merged with NYSE Group, Inc. on April 4,2007 to form NYSE Euronext. On November 13,2013 Intercontinental Exchange, completed acquisition of NYSE Euronext, in June 2014 Euronext completed an initial public offering making it a standalone company again. In December 2001, Euronext acquired the shares of the London International Financial Futures and Options Exchange, in 2002 the group merged with the Portuguese stock exchange Bolsa de Valores de Lisboa e Porto, renamed Euronext Lisbon. In 2001, Euronext became a company itself after completing its Initial Public Offering. Despite this, NYSE Group and Euronext penned an agreement, subject to shareholder vote. The initial regulatory response by SEC chief Christopher Cox was positive, the new firm, tentatively dubbed NYSE Euronext, would be headquartered in New York City, with European operations and its trading platform run out of Paris. In addition, the two hoped to add Borsa Italiana into the grouping. Deutsche Börse dropped out of the bidding for Euronext on 15 November 2006, a run-up of NYSE Groups stock price in late 2006 made the offering far more attractive to Euronexts shareholders. On 19 December 2006, Euronext shareholders approved the transaction with 98. 2% of the vote, only 1. 8% voted in favour of the Deutsche Börse offer. Jean-François Théodore, the Chief Executive Officer of Euronext, stated that expected the transaction to close within three or four months. Some of the agencies with jurisdiction over the merger had already given approval. NYSE Group shareholders gave their approval on 20 December 2006, the merger was completed on 4 April 2007, forming NYSE Euronext. In 2008 and 2009 Deutsche Börse made two attempts to merge with NYSE Euronext. Both attempts did not enter into advanced steps of merger, in 2011, Deutsche Börse and NYSE Euronext confirmed that they were in advanced merger talks. Such a merger would create the largest exchange in history, the deal was approved by shareholders of NYSE Euronext on July 7,2011, and Deutsche Börse on July 15,2011 and won the antitrust approved by the US regulators on December 22,2011. Deutsche Börse unsuccessfully appealed this decision, in 2012, Euronext announced the creation of Euronext London to offer listing facilities in the UK
5.
Euro
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Outside of Europe, a number of overseas territories of EU members also use the euro as their currency. Additionally,210 million people worldwide as of 2013 use currencies pegged to the euro, the euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar. The name euro was adopted on 16 December 1995 in Madrid. The euro was introduced to world markets as an accounting currency on 1 January 1999. While the euro dropped subsequently to US$0.8252 within two years, it has traded above the U. S. dollar since the end of 2002, peaking at US$1.6038 on 18 July 2008. In July 2012, the euro fell below US$1.21 for the first time in two years, following concerns raised over Greek debt and Spains troubled banking sector, as of 26 March 2017, the euro–dollar exchange rate stands at ~ US$1.07. The euro is managed and administered by the Frankfurt-based European Central Bank, as an independent central bank, the ECB has sole authority to set monetary policy. The Eurosystem participates in the printing, minting and distribution of notes and coins in all states. The 1992 Maastricht Treaty obliges most EU member states to adopt the euro upon meeting certain monetary and budgetary convergence criteria, all nations that have joined the EU since 1993 have pledged to adopt the euro in due course. Since 5 January 2002, the central banks and the ECB have issued euro banknotes on a joint basis. Euro banknotes do not show which central bank issued them, Eurosystem NCBs are required to accept euro banknotes put into circulation by other Eurosystem members and these banknotes are not repatriated. The ECB issues 8% of the value of banknotes issued by the Eurosystem. In practice, the ECBs banknotes are put into circulation by the NCBs and these liabilities carry interest at the main refinancing rate of the ECB. The euro is divided into 100 cents, in Community legislative acts the plural forms of euro and cent are spelled without the s, notwithstanding normal English usage. Otherwise, normal English plurals are used, with many local variations such as centime in France. All circulating coins have a side showing the denomination or value. Due to the plurality in the European Union, the Latin alphabet version of euro is used. For the denominations except the 1-, 2- and 5-cent coins, beginning in 2007 or 2008 the old map is being replaced by a map of Europe also showing countries outside the Union like Norway
6.
Bond (finance)
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In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds, interest is usually payable at fixed intervals. Very often the bond is negotiable, that is, the ownership of the instrument can be transferred in the secondary market and this means that once the transfer agents at the bank medallion stamp the bond, it is highly liquid on the second market. Thus, a bond is a form of loan or IOU, the holder of the bond is the lender, the issuer of the bond is the borrower, and the coupon is the interest. Bonds provide the borrower with funds to finance long-term investments, or, in the case of government bonds. Certificates of deposit or short term commercial paper are considered to be money market instruments and not bonds, the main difference is in the length of the term of the instrument. Bonds and stocks are both securities, but the difference between the two is that stockholders have an equity stake in the company, whereas bondholders have a creditor stake in the company. Being a creditor, bondholders have priority over stockholders and this means they will be repaid in advance of stockholders, but will rank behind secured creditors in the event of bankruptcy. Another difference is that usually have a defined term, or maturity, after which the bond is redeemed. An exception is a bond, such as a consol, which is a perpetuity, that is. Bonds are issued by authorities, credit institutions, companies. The most common process for issuing bonds is through underwriting, when a bond issue is underwritten, one or more securities firms or banks, forming a syndicate, buy the entire issue of bonds from the issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors. Primary issuance is arranged by bookrunners who arrange the bond issue, have contact with investors and act as advisers to the bond issuer in terms of timing. The bookrunner is listed first among all participating in the issuance in the tombstone ads commonly used to announce bonds to the public. The bookrunners willingness to underwrite must be discussed prior to any decision on the terms of the issue as there may be limited demand for the bonds. In contrast, government bonds are issued in an auction. In some cases, both members of the public and banks may bid for bonds, in other cases, only market makers may bid for bonds
7.
Dutch guilder
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The Dutch guilder or fl. was the currency of the Netherlands from the 17th century until 2002, when it was replaced by the euro. Between 1999 and 2002, the guilder was officially a national subunit of the euro, however, physical payments could only be made in guilder, as no euro coins or banknotes were available. The Netherlands Antillean guilder is still in use in Curaçao and Sint Maarten, in 2004, the Surinamese guilder was replaced by the Surinamese dollar. The Dutch name gulden was a Middle Dutch adjective meaning golden, the symbol ƒ or fl. for the Dutch guilder was derived from another old currency, the florin, called the florin in English. The exact exchange rate, still relevant for old contracts and for exchange of the old currency for euros at the bank, is 2.20371 Dutch guilders for 1 euro. Inverted, this gives EUR0.453780 for NLG1, before the introduction of the first guilder, there were regional and foreign golden coins that were likely referred to as gulden in Dutch. The first internationally accepted Dutch coin called gulden dates from 1517, even before that, the County of Holland had minted golden coins since 1378. An early guilder, a 10. 61-gram.910 silver coin, was minted by the States of Holland and this guilder was divided into 20 stuivers, each of 8 duiten or 16 penningen. The guilder gradually replaced other silver coin circulating in the United Netherlands, the florijn, the daalder, the rijksdaalder, the silver ducat. Between 1810 and 1814, the Netherlands was annexed to France, after the Napoleonic wars, the Kingdom of the Netherlands readopted the guilder. In 1817 it became decimalised, with one guilder equal to 100 cents, until 1948, the plural of cent used on coins was centen, after that it was cent. The Netherlands was initially on a standard, with the guilder equal to 605.61 milligrams of fine gold or 9.615 grams of fine silver. In 1840, the standard was adjusted to 9.45 grams. In 1875, the Netherlands adopted a standard with 1 guilder equal to 604.8 milligrams of fine gold. The gold standard was suspended between 1914 and 1925 and was abandoned in 1936, following the German occupation, on 10 May 1940, the guilder was pegged to the Reichsmark at a rate of 1 guilder =1.5 Reichsmark. This rate was reduced to 1.327 on 17 July of the same year, the liberating Allied forces set an exchange rate of 2.652 guilders =1 U. S. dollar, which became the peg for the guilder within the Bretton Woods system. In 1949, the peg was changed to 3.8 guilders =1 dollar, in 1961, the guilder was revalued to 3.62 guilders =1 dollar, a change approximately in line with that of the German mark. After 1967 guilders were made from nickel instead of silver, in 2002, the guilder was replaced by the euro at an exchange rate of 2.20371 guilders =1 Euro
8.
Brussels Stock Exchange
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The Brussels Stock Exchange, abbreviated to BSE, was founded in Brussels, Belgium, by decree of Napoleon in 1801. The most well known index on the Brussels Stock Exchange is the BEL20 and it now belongs to the NYSE Euronext group, the first global stock exchange. The building that houses the Brussels Stock Exchange does not have a distinct name and it is located on Boulevard Anspach, and is the namesake of the Place de la Bourse/Beursplein, which is, after the Grand Place, the second most important square in Brussels. As part of the covering of the river Senne for health and aesthetic reasons in the 1860s and 1870s, architect Léon-Pierre Suys, as part of his proposal for covering of the Senne, designed a building to become the centre of the rapidly expanding business sector. It was to be located on the butter market, on the newly created Anspach Boulevard. The building was erected from 1868 to 1873, and mixes elements of the Neo-Renaissance, euro. nm Euronext 100 Euronext Amsterdam Euronext Lisbon Euronext Paris A Euronext pamphlet describing the history of the Brussels Stock Exchange
9.
Dutch East India Company
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It is often considered to be the worlds first truly transnational corporation and the first company in history to actually issue bonds and shares of stock to the general public. In other words, the VOC was officially the first publicly traded company of the world, the company was also considered by many to be the very first major and the greatest corporation in history. Statistically, the VOC eclipsed all of its rivals in international trade for almost 200 years of existence. Between 1602 and 1796 the VOC sent almost a million Europeans to work in the Asia trade on 4,785 ships, the VOC enjoyed huge profits from its spice monopoly through most of the 17th century. Having been set up in 1602, to profit from the Malukan spice trade, in 1619 the VOC established a capital in the city of Jayakarta. Over the next two centuries the Company acquired additional ports as trading bases and safeguarded their interests by taking over surrounding territory and it remained an important trading concern and paid an 18% annual dividend for almost 200 years. Around the world and especially in English-speaking countries, the VOC is widely known as the Dutch East India Company, the name ‘Dutch East India Company’ is used to make a distinction with the East India Company and other East Indian companies. The abbreviation VOC stands for Vereenigde Oost-Indische Compagnie or Verenigde Oostindische Compagnie in Dutch, the VOC monogram was possibly the first globally-recognized corporate logo. The logo of the VOC consisted of a large capital V with an O on the left and it appeared on various corporate items, such as cannon and coins. The first letter of the hometown of the conducting the operation was placed on top. An Australian vintner has used the VOC logo since the late 20th century, the flag of the company was orange, white, and blue, with the company logo embroidered on it. Before the Dutch Revolt, Antwerp had played an important role as a centre in northern Europe. At the same time, the Portuguese trade system was unable to supply to satisfy growing demand. Demand for spices was relatively inelastic, and therefore each lag in the supply of pepper caused a rise in pepper prices. These three factors motivated Dutch merchants to enter the spice trade themselves. Further, a number of Dutchmen like Jan Huyghen van Linschoten and Cornelis de Houtman obtained first hand knowledge of the secret Portuguese trade routes and practices, thereby providing opportunity. The stage was set for Houtmans 1595 four-ship exploratory expedition to Banten, the main pepper port of West Java. Houtmans expedition then sailed east along the north coast of Java, losing twelve crew to a Javanese attack at Sidayu, half the crew were lost before the expedition made it back to the Netherlands the following year, but with enough spices to make a considerable profit
10.
Stock
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The stock of a corporation is constituted of the equity stock of its owners. A single share of the stock represents fractional ownership of the corporation in proportion to the number of shares. In liquidation, the stock represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt. Stockholders equity cannot be withdrawn from the company in a way that is intended to be detrimental to the companys creditors, the stock of a corporation is partitioned into shares, the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value, in other jurisdictions, however, shares of stock may be issued without associated par value. Shares represent a fraction of ownership in a business, a business may declare different types of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a document that specifies the amount of shares owned by the shareholder. Stock typically takes the form of shares of common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions, shares of such stock are called convertible preferred shares. New equity issue may have specific legal clauses attached that differentiate them from previous issues of the issuer. Some shares of stock may be issued without the typical voting rights, for instance, or some shares may have special rights unique to them. Often, new issues that have not been registered with a governing body may be restricted from resale for certain periods of time. Preferred stock may be hybrid by having the qualities of bonds of fixed returns and they also have preference in the payment of dividends over common stock and also have been given preference at the time of liquidation over common stock. They have other features of accumulation in dividend, Rule 144 Stock is an American term given to shares of stock subject to SEC Rule 144, Selling Restricted and Control Securities. Under Rule 144, restricted and controlled securities are acquired in unregistered form, investors either purchase or take ownership of these securities through private sales from the issuing company or from an affiliate of the issuer. Investors wishing to sell these securities are subject to different rules than those selling traditional common or preferred stock and these individuals will only be allowed to liquidate their securities after meeting the specific conditions set forth by SEC Rule 144
11.
Security (finance)
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A security is a tradable financial asset. The term commonly refers to any form of instrument. In some jurisdictions the term specifically excludes financial instruments other than equities, in some jurisdictions it includes some instruments that are close to equities and fixed income, e. g. equity warrants. In the United States, a security is a financial asset of any kind. Securities are broadly categorized into, debt securities equity securities derivatives, the company or other entity issuing the security is called the issuer. A countrys regulatory structure determines what qualifies as a security, for example, private investment pools may have some features of securities, but they may not be registered or regulated as such if they meet various restrictions. Securities may be represented by a certificate or, more typically, non-certificated, region or country Market capitalization State Securities are the traditional way that commercial enterprises raise new capital. These may be an alternative to bank loans depending on their pricing. Another disadvantage of bank loans as a source of financing is that the bank may seek a measure of protection against default by the borrower via extensive financial covenants, through securities, capital is provided by investors who purchase the securities upon their initial issuance. In a similar way, a government may issue securities too when it needs to increase government debt, investors in securities may be retail, i. e. members of the public investing other than by way of business. The greatest part of investment, in terms of volume, is wholesale, i. e. by financial institutions acting on their own account, important institutional investors include investment banks, insurance companies, pension funds and other managed funds. The traditional economic function of the purchase of securities is investment, debt securities generally offer a higher rate of interest than bank deposits, and equities may offer the prospect of capital growth. Equity investment may also control of the business of the issuer. Debt holdings may also offer some measure of control to the if the company is a fledgling start-up or an old giant undergoing restructuring. In these cases, if interest payments are missed, the creditors may take control of the company, the last decade has seen an enormous growth in the use of securities as collateral. Purchasing securities with borrowed money secured by other securities or cash itself is called buying on margin, where A is owed a debt or other obligation by B, A may require B to deliver property rights in securities to A, either at inception or only in default. Collateral arrangements are divided into two categories, namely security interests and outright collateral transfers. Commonly, commercial banks, investment banks, government agencies and other investors such as mutual funds are significant collateral takers as well as providers
12.
Futures contract
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In finance, a futures contract is a standardized forward contract which can be easily traded between parties other than the two initial parties to the contract. The parties initially agree to buy and sell an asset for an agreed upon today, with delivery and payment occurring at a future point. Because it is a function of an asset, a futures contract is a derivative product. Contracts are negotiated at futures exchanges, which act as a marketplace between buyers and sellers, the buyer of a contract is said to be long position holder, and the selling party is said to be short position holder. For example, in gold trading, the margin varies between 2% and 20% depending on the volatility of the spot market. The first futures contracts were negotiated for agricultural commodities, and later contracts were negotiated for natural resources such as oil. The original use of futures contracts was to mitigate the risk of price or exchange rate movements by allowing parties to fix prices or rates in advance for future transactions. The Chicago Board of Trade listed the first-ever standardized exchange traded forward contracts in 1864, by 1875 cotton futures were being traded in Bombay in India and within a few years this had expanded to futures on edible oilseeds complex, raw jute and jute goods and bullion. The 1972 creation of the International Monetary Market, the worlds first financial futures exchange, in 1976, the IMM added interest rate futures on US treasury bills, and in 1982 they added stock market index futures. Although futures contract are oriented towards a future point, their main purpose is to mitigate risk of default by either party in the intervening period. In this vein, the futures exchange requires both parties to put up initial cash, or a bond, known as the margin. To mitigate the risk of default, the product is marked to market on a basis where the difference between the initial agreed-upon price and the actual daily futures price is reevaluated daily. If the margin account goes below a certain value set by the Exchange, then a call is made. This process is known as marking to market, thus on the delivery date, the amount exchanged is not the specified price on the contract but the spot value. Upon marketing the strike price is reached and creates lots of income for the caller. To minimize credit risk to the exchange, traders must post a margin or a performance bond, to minimize counterparty risk to traders, trades executed on regulated futures exchanges are guaranteed by a clearing house. The clearing house becomes the buyer to each seller, and the seller to each Buyer and this enables traders to transact without performing due diligence on their counterparty. Margin requirements are waived or reduced in cases for hedgers who have physical ownership of the covered commodity or spread traders who have offsetting contracts balancing the position
13.
Option (finance)
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The strike price may be set by reference to the spot price of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount in a premium. The seller has the obligation to fulfill the transaction – to sell or buy – if the buyer exercises the option. Both are commonly used in and by the old traded, when an option is exercised, the cost to the buyer of the asset acquired is the strike price plus the premium, if any. When the option expiration date passes without the option being exercised, then the option expires, in any case, the premium is income to the seller, and normally a capital loss to the buyer. The owner of an option may on-sell the option to a party in a secondary market, in either an over-the-counter transaction or on an options exchange. The market price of an American-style option normally closely follows that of the underlying stock, being the difference between the market price of the stock and the strike price of the option. The ownership of an option does not generally entitle the holder to any rights associated with the asset, such as voting rights or any income from the underlying asset. Contracts similar to options have been used since ancient times, the first reputed option buyer was the ancient Greek mathematician and philosopher Thales of Miletus. When spring came and the olive harvest was larger than expected he exercised his options, in London, puts and refusals first became well-known trading instruments in the 1690s during the reign of William and Mary. Privileges were options sold over the counter in nineteenth century America and their exercise price was fixed at a rounded-off market price on the day or week that the option was bought, and the expiry date was generally three months after purchase. They were not traded in secondary markets, film or theatrical producers often buy the right — but not the obligation — to dramatize a specific book or script. Lines of credit give the borrower the right — but not the obligation — to borrow within a specified time period. Many choices, or embedded options, have traditionally included in bond contracts. For example, many bonds are convertible into common stock at the buyers option, mortgage borrowers have long had the option to repay the loan early, which corresponds to a callable bond option. Options contracts have been known for decades, the Chicago Board Options Exchange was established in 1973, which set up a regime using standardized forms and terms and trade through a guaranteed clearing house. Trading activity and academic interest has increased since then, Options are part of a larger class of financial instruments known as derivative products, or simply, derivatives. A financial option is a contract between two counterparties with the terms of the option specified in a term sheet, Exchange traded options have standardized contracts, and are settled through a clearing house with fulfillment guaranteed by the Options Clearing Corporation. Since the contracts are standardized, accurate pricing models are often available, the terms of an OTC option are unrestricted and may be individually tailored to meet any business need
14.
Stock market index
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A stock index or stock market index is a measurement of the value of a section of the stock market. It is computed from the prices of selected stocks and it is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments. An index is a construct, so it may not be invested in directly. But many mutual funds and exchange-traded funds attempt to track an index, Stock market indices may be classified in many ways. A world or global stock market index — such as the MSCI World or the S&P Global 100 — includes stocks from multiple regions, regions may be defined geographically or by levels of industrialization or income. A national index represents the performance of the market of a given nation—and by proxy. Other indices may be regional, such as the FTSE Developed Europe Index or the FTSE Developed Asia Pacific Index, indexes may be based on exchange, such as the NASDAQ-100 or NYSE US100, or groups of exchanges, such as the Euronext 100 or OMX Nordic 40. The concept may be extended well beyond an exchange, russell Investment Group added to the family of indices by launching the Russel Global Index. More specialized indices exist tracking the performance of specific sectors of the market, some indices, such as the S&P500, have multiple versions. These versions can differ based on how the components are weighted. The difference between the full capitalization, float-adjusted, and equal weight versions is in how index components are weighted, an index may also be classified according to the method used to determine its price. In contrast, an index such as the Hang Seng Index factors in the size of the company. Thus, a small shift in the price of a large company will heavily influence the value of the index. Traditionally, capitalization- or share-weighted indices all had a full weighting, recently, many of them have changed to a float-adjusted weighting which helps indexing. An equal-weighted index is one in all components are assigned the same value. For example, the Barrons 400 Index assigns a value of 0. 25% to each of the 400 stocks included in the index. A modified capitalization-weighted index is a hybrid between capitalization weighting and equal weighting, moreover, in 2005, Standard & Poors introduced the S&P Pure Growth Style Index and S&P Pure Value Style Index which was attribute-weighted. For these two indexes, a score is calculated for every stock, be it their growth score or the value score, one argument for capitalization weighting is that investors must, in aggregate, hold a capitalization-weighted portfolio anyway
15.
Forward contract
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The party agreeing to buy the underlying asset in the future assumes a long position, and the party agreeing to sell the asset in the future assumes a short position. A closely related contract is a contract, they differ in certain respects. Forward contracts are similar to futures contracts, except they are not exchange-traded. However, being traded over the counter, forward contracts specification can be customized and may include mark-to-market, hence, a forward contract arrangement might call for the loss party to pledge collateral or additional collateral to better secure the party at gain. g. The value of a position at maturity depends on the relationship between the delivery price and the underlying price at that time. At the same time, suppose that Andy currently owns a $100,000 house that he wishes to sell a year from now, both parties could enter into a forward contract with each other. Suppose that they agree on the sale price in one years time of $104,000. Andy and Bob have entered into a forward contract, Bob, because he is buying the underlying, is said to have entered a long forward contract. Conversely, Andy will have the forward contract. At the end of one year, suppose that the current market valuation of Andys house is $110,000, then, because Andy is obliged to sell to Bob for only $104,000, Bob will make a profit of $6,000. To see why this is so, one only to recognize that Bob can buy from Andy for $104,000. Bob has made the difference in profit, in contrast, Andy has made a potential loss of $6,000, and an actual profit of $4,000. In a currency forward, the amounts of currencies are specified. Continuing on the example above, suppose now that the price of Andys house is $100,000. But since Andy knows that he can sell for $100,000 and place the proceeds in the bank. Suppose that the free rate of return R for one year is 4%. Then the money in the bank would grow to $104,000, so Andy would want at least $104,000 one year from now for the contract to be worthwhile for him – the opportunity cost will be covered. For liquid assets, spot–forward parity provides the link between the market and the forward market
16.
Beurs van Berlage
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The Beurs van Berlage is a building on the Damrak, in the centre of Amsterdam. It was designed as a commodity exchange by architect Hendrik Petrus Berlage and it influenced many modernist architects, in particular functionalists and the Amsterdam School. It is now used as a venue for concerts, exhibitions, the building is constructed of red brick, with an iron and glass roof and stone piers, lintels and corbels. Its entrance is under a 40-metre high clock tower, while inside lie three large multi-storey halls formerly used as trading floors, with offices and communal facilities grouped around them. The aim of the architect was to modify the styles of the past by emphasizing sweeping planes, true to its nineteenth-century roots, it maintains the use of ornament in a civic structure. On 2 February 2002 the civil ceremony of the wedding of King Willem-Alexander, the Beurs van Berlage has a café located on the Beursplein side and the tower is also open to the public. Official website Beurs van Berlage Tower Panorama – AmsterdamTips. com Netherlands, Amsterdam, Damrak - Beurs van Berlage, VR panoramas by Tolomeus
17.
States General of the Netherlands
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The States General is the bicameral legislature of the Netherlands, consisting of the Senate and the House of Representatives. The parliament meets at the Binnenhof in The Hague, the States General originated in the 15th century as an assembly of all the provincial states of the Burgundian Netherlands. The States General were replaced by the National Assembly after the Batavian Revolution of 1795, only to be restored in 1814, the States General was divided into a Senate and a House of Representatives in 1815, with the establishment of the United Kingdom of the Netherlands. On exceptional occasions, the two form a joint session known as the United Assembly. The President of the Senate serves as President of the States General during a United Assembly, ankie Broekers-Knol has been President of the Senate since 2013. The archaic Dutch word staten originally related to the classes in which medieval European societies were stratified, the clergy, the nobility. The word eventually came to mean the political body in which the estates were represented. Each province in the Habsburg Netherlands had its own staten and these representative bodies in turn were represented in the assembly that came to be known as Staten-Generaal, or Algemene Staten. The English word states may have a meaning as the Dutch word staten. The English phrases States General is probably a translation of the Dutch word. Historically, the term was used for the name of other national legislatures as, for example, the Catalan and Valencian Generalitat. Several geographic place names are derived from the States General, in 1609, Henry Hudson established Dutch trade in Staten Island, New York City and named the island Staaten Eylandt after the States General. Isla de los Estados, now an Argentine island, was named after this institution. Abel Tasman originally gave the name Staten Landt to what would become New Zealand, Staaten River is a river in the Cape York Peninsula, Australia. Later, regular sessions were held at Coudenberg in Brussels, Brabant, the next important event was the convocation of the States General by the ducal Council for 3 February 1477 after the death of Charles the Bold. In this session the States General forced the grant of the Great Privilege by Mary of Burgundy in which the right of the States General to convene on their own initiative was recognised, in 1576 the States General as a whole, however, openly rebelled against the Spanish crown. In 1579 the States General split as a number of provinces, united in the Union of Arras returned to obedience, while other provinces. After the Act of Abjuration in 1581 the northern States General replaced Philip II as the authority of the northern Netherlands
18.
History of Jakarta
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Jakarta is Indonesias capital and largest city. Located on an estuary of the Ciliwung River, on the part of Java. Historical evidence from Jakarta dates back to the 4th century CE, the city has been sequentially claimed by the Indianized kingdom of Tarumanegara, the Hindu Kingdom of Sunda, the Muslim Sultanate of Banten, and by Dutch, Japanese and Indonesian administrations. The Dutch East Indies built up the area before it was taken during World War II by the Empire of Japan, Jakarta has been known by several names. It was called Sunda Kelapa during the Kingdom of Sunda period, thereafter, Jakarta evolved in three stages. The old city, close to the sea in the north, the new city to the south evolved between 1809 and 1942 after the Dutch government took over control of Batavia from the failed VOC whose charter expired in 1799. The third was the development of modern Jakarta since the proclamation of independence in 1945, under the Dutch, it was known as Batavia, and was Djakarta or Jakarta, during the Japanese occupation and the modern period. For a more detailed history of Jakarta before the proclamation of Indonesian independence, see Batavia, the coastal area and port of Jakarta in northern West Java has been the location of human settlement since the 4th century BCE Buni culture. The earliest historical record discovered in Jakarta is the Tugu inscription and it is among the oldest inscriptions in Indonesian history. The area was part of the Indianized kingdom of Tarumanagara, in AD397, King Purnawarman established Sunda Pura, located on the northern coast of West Java, as the new capital city for the kingdom. The capital of Tarumanagara kingdom was most probably located somewhere between Tugu sub-district North Jakarta and Bekasi Regency West Java, Purnawarman left seven memorial stones across the area, including the present-day Banten and West Java provinces, consisting of inscriptions bearing his name. After the power of Tarumanagara declined, its territories became part of the Kingdom of Sunda, according to the Chinese source, Chu-fan-chi, written by Chou Ju-kua in the early 13th Century, the Sumatra-based kingdom of Srivijaya ruled Sumatra, the Malay peninsula, and western Java. The port of Sunda was described as strategic and thriving, with pepper from Sunda renowned for its supreme quality, the people of the area worked in agriculture and their houses were built on wooden piles. The port served Pakuan Pajajaran, the capital of the Sunda Kingdom, by the fourteenth century, Sunda Kelapa became a major trading port for the kingdom. Accounts of 16th century European explorers make mention of a city called Kalapa, in 1522, the Portuguese secured Luso Sundanese padrão, a political and economic agreement with the Sunda Kingdom, the authority of the port. In exchange for assistance against the threat of the rising Islamic Javan Sultanate of Demak, Prabu Surawisesa, king of Sunda at that time. Portuguese who were in the service of the made their homes in Sunda Kelapa. Later, the became a part of the Banten Sultanate
19.
Hendrik de Keyser
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Hendrick de Keyser was a Dutch sculptor and architect born in Utrecht, Netherlands, who was instrumental in establishing a late Renaissance form of Mannerism in Amsterdam. He was the father of Thomas de Keyser who was an architect, as a young man the Utrecht-born artist Hendrick de Keyser was apprenticed to master Cornelis Bloemaert the elder. At the age of 26 he followed Bloemaert to Amsterdam, soon he set to work as an independent artist. When his talent became generally appreciated he was appointed city stonemason, in fact his duties included all of the tasks now associated with the job of city architect. De Keyser is famous for a number of important buildings which belong to the core of Dutch historic sites, today the Zuiderkerk and accompanying tower, the Delft Town Hall, the Westerkerk and Westertoren are among the historic buildings which provide important insights into De Keyser’s work. His Commodity Exchange of 1608-1613 was pulled down in the 19th century, Hendrick de Keysers projects in Amsterdam during the early decades of the 17th century helped establish a late Mannerist style referred to as Amsterdam Renaissance. The Amsterdam Renaissance style deviates in many respects from sixteenth-century Italian Renaissance architecture, classical elements such as pilasters, cornices and frontons were used on a large scale, but mainly as decorative elements. De Keyser never slavishly followed the tenets of classical architecture as laid down in the Italian treatises. His version came to bloom at the end of the second decade of the 17th century. The East India House in Amsterdam was most likely designed by him. Apart from pursuing a career as an architect, De Keyser remained active as a sculptor and he designed the tomb of William the Silent for the Nieuwe Kerk at Delft. However, De Keyser did not live to see the finished product and he died in Amsterdam, and his son Pieter completed the project. In 1631, ten years after De Keyser’s death, Cornelis Danckertsz included the architect’s most important sketches in his book ’Architectura Moderna’, De Keysers career was not limited to Amsterdam, and his international contacts helped him to keep in touch with the mainstream of European architecture. The Amsterdam city administrators sent him to England where he worked with Inigo Jones, Jones was the first English architect who went to Italy to learn all he could about classical architecture. He studied the famous treatises written by the Roman architect Vitruvius, the Banqueting House in London, designed for the Stuart monarchs, became the prototype of classical architecture in England. When De Keyser returned to Amsterdam one of Jones’ assistants, Nicholas Stone, Stone worked with De Keyser in Amsterdam from 1607 to 1613 and even became his son-in-law. De Keyser attention to England and English architecture reflect Amsterdams position as a centre in Europe. 1611, Beurs van Hendrick de Keyser, Rokin, Amsterdam, 1614-1623, Praalgraf Willem van Oranje, Delft
20.
Social Science Research Network
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The Social Science Research Network is a website devoted to the rapid dissemination of scholarly research in the social sciences and humanities. In January 2013, SSRN was ranked the top open-access repository in the world by Ranking Web of Repositories, in May 2016, SSRN was bought from Social Science Electronic Publishing Inc. by Elsevier. SSRN was founded in 1994 by Michael Jensen and Wayne Marr, in May 2016, SSRN was bought from Social Science Electronic Publishing Inc. by Elsevier. In July 2016 there were reports of papers being removed from SSRN without notice, SSRN CEO Gregg Gordon characterized the issue as a mistake affecting about 20 papers. Moreover, even if access to the paper is restricted, access to the original working paper remains open through SSRN. Often authors take papers down at the request of publishers, particularly if they are published by commercial or university presses which depend on payment for paper copies or on-line access. Academic papers in PDF format can be uploaded directly to the SSRN site by authors and are available for worldwide free downloading. Publishers and institutions can upload papers and charge a fee for readers to download them, users can also subscribe to abstracting email journals covering a broad range of subject matters. These e-journals then periodically distribute emails containing abstracts of papers submitted to SSRN in the respective field. On SSRN, authors and papers are ranked by their number of downloads, SSRN has mirror sites at the European Corporate Governance Institute, Korea University, Stanford Law School and University of Chicago Booth School of Business. Academic databases and search engines ArXiv Official website
21.
International Standard Book Number
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The International Standard Book Number is a unique numeric commercial book identifier. An ISBN is assigned to each edition and variation of a book, for example, an e-book, a paperback and a hardcover edition of the same book would each have a different ISBN. The ISBN is 13 digits long if assigned on or after 1 January 2007, the method of assigning an ISBN is nation-based and varies from country to country, often depending on how large the publishing industry is within a country. The initial ISBN configuration of recognition was generated in 1967 based upon the 9-digit Standard Book Numbering created in 1966, the 10-digit ISBN format was developed by the International Organization for Standardization and was published in 1970 as international standard ISO2108. Occasionally, a book may appear without a printed ISBN if it is printed privately or the author does not follow the usual ISBN procedure, however, this can be rectified later. Another identifier, the International Standard Serial Number, identifies periodical publications such as magazines, the ISBN configuration of recognition was generated in 1967 in the United Kingdom by David Whitaker and in 1968 in the US by Emery Koltay. The 10-digit ISBN format was developed by the International Organization for Standardization and was published in 1970 as international standard ISO2108, the United Kingdom continued to use the 9-digit SBN code until 1974. The ISO on-line facility only refers back to 1978, an SBN may be converted to an ISBN by prefixing the digit 0. For example, the edition of Mr. J. G. Reeder Returns, published by Hodder in 1965, has SBN340013818 -340 indicating the publisher,01381 their serial number. This can be converted to ISBN 0-340-01381-8, the check digit does not need to be re-calculated, since 1 January 2007, ISBNs have contained 13 digits, a format that is compatible with Bookland European Article Number EAN-13s. An ISBN is assigned to each edition and variation of a book, for example, an ebook, a paperback, and a hardcover edition of the same book would each have a different ISBN. The ISBN is 13 digits long if assigned on or after 1 January 2007, a 13-digit ISBN can be separated into its parts, and when this is done it is customary to separate the parts with hyphens or spaces. Separating the parts of a 10-digit ISBN is also done with either hyphens or spaces, figuring out how to correctly separate a given ISBN number is complicated, because most of the parts do not use a fixed number of digits. ISBN issuance is country-specific, in that ISBNs are issued by the ISBN registration agency that is responsible for country or territory regardless of the publication language. Some ISBN registration agencies are based in national libraries or within ministries of culture, in other cases, the ISBN registration service is provided by organisations such as bibliographic data providers that are not government funded. In Canada, ISBNs are issued at no cost with the purpose of encouraging Canadian culture. In the United Kingdom, United States, and some countries, where the service is provided by non-government-funded organisations. Australia, ISBNs are issued by the library services agency Thorpe-Bowker
22.
German National Library of Economics
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The ZBW is Germany’s central subject library and research infrastructure for economics in Germany. The ZBW is part of the system of national literature provision within the German Research Foundation, the ZBW holds almost 4.4 million items. The ZBW subscribes to more than 27,100 journals and enables access to 2.3 million electronic documents, the search portal EconBiz gives free access to 10 million datasets. More than 134,000 full-texts from German research institutes and universities are available online, the ZBW creates content-descriptive metadata not only for books, but also for articles in journals and working papers, i. e. they are indexed with keywords from the Standard Thesaurus for Economics. The ZBW maintains the search portal EconBiz containing more than 10 million datasets of bibliographic references for economics, the ZBW also offers an online reference service, Research Guide EconDesk, which provides guidance for literature and data searches in economics and business studies. The ZBW is a player in the Open Access movement which aims for free access to scholarly research output. It is the negotiator for national licences in economics in Germany. The repository EconStor serves as a platform for the publication of research output in economics. Authors and publishing institutions can publish without charges on EconStor, more than 400 institutions use EconStor for the digital dissemination of their publications in Open Access. It is a service for RePEc and one of its most frequently used archives. All titles in EconStor are indexed by search engines such as Google, Google Scholar and BASE, the ZBW Journal Data Archive is a service for the editors of scholarly journals in economics. Editors can deposit datasets and other relating to empirical articles. The ZBW publishes two journals of economic policy, Wirtschaftsdienst and Intereconomics, the ZBW also provides support for researchers dealing with the different aspects of the digitisation of the science system, such as publishing in Open Access or research data management. The ZBW participates in national and international projects to new services for its users. GeRDI – Generic Research Data Infrastructure, the project aims to develop a distributed and linked-up research data infrastructure. It aims to link existing and future research data centres all over Germany. This allows scientists to search for and re-use research data across disciplines, the ZBW coordinates the project which is funded by the German Research Foundation. It aims to show that extensive automation of metadata creation can produce relevant added value to scholarly information discovery, metrics, MEasuring The Reliability and perception of Indicators for interactions with sCientific productS
23.
Geographic coordinate system
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A geographic coordinate system is a coordinate system used in geography that enables every location on Earth to be specified by a set of numbers, letters or symbols. The coordinates are chosen such that one of the numbers represents a vertical position. A common choice of coordinates is latitude, longitude and elevation, to specify a location on a two-dimensional map requires a map projection. The invention of a coordinate system is generally credited to Eratosthenes of Cyrene. Ptolemy credited him with the adoption of longitude and latitude. Ptolemys 2nd-century Geography used the prime meridian but measured latitude from the equator instead. Mathematical cartography resumed in Europe following Maximus Planudes recovery of Ptolemys text a little before 1300, in 1884, the United States hosted the International Meridian Conference, attended by representatives from twenty-five nations. Twenty-two of them agreed to adopt the longitude of the Royal Observatory in Greenwich, the Dominican Republic voted against the motion, while France and Brazil abstained. France adopted Greenwich Mean Time in place of local determinations by the Paris Observatory in 1911, the latitude of a point on Earths surface is the angle between the equatorial plane and the straight line that passes through that point and through the center of the Earth. Lines joining points of the same latitude trace circles on the surface of Earth called parallels, as they are parallel to the equator, the north pole is 90° N, the south pole is 90° S. The 0° parallel of latitude is designated the equator, the plane of all geographic coordinate systems. The equator divides the globe into Northern and Southern Hemispheres, the longitude of a point on Earths surface is the angle east or west of a reference meridian to another meridian that passes through that point. All meridians are halves of great ellipses, which converge at the north and south poles, the prime meridian determines the proper Eastern and Western Hemispheres, although maps often divide these hemispheres further west in order to keep the Old World on a single side. The antipodal meridian of Greenwich is both 180°W and 180°E, the combination of these two components specifies the position of any location on the surface of Earth, without consideration of altitude or depth. The grid formed by lines of latitude and longitude is known as a graticule, the origin/zero point of this system is located in the Gulf of Guinea about 625 km south of Tema, Ghana. To completely specify a location of a feature on, in, or above Earth. Earth is not a sphere, but a shape approximating a biaxial ellipsoid. It is nearly spherical, but has an equatorial bulge making the radius at the equator about 0. 3% larger than the radius measured through the poles, the shorter axis approximately coincides with the axis of rotation
24.
Futures exchange
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These types of contracts fall into the category of derivatives. The opposite of the market is the spots market, where trades will occur immediately after a transaction agreement has been made. Futures instruments are priced according to the movement of the underlying asset, the aforementioned category is named derivatives because the value of these instruments are derived from another asset class. Speculators absorb some of the risk but hedging appears to drive most commodity markets, the equilibrium futures price can be either below or above the expected future price. Rollover hedges can extend insurance from short-horizon contracts over longer periods. In Ancient Mesopotamia, around 1750 BC, the sixth Babylonian king, Hammurabi, created one of the first legal codes, the Code of Hammurabi. Hammurabi’s Code allowed sales of goods and assets to be delivered for a price, at a future date, required contracts to be in writing and witnessed. The code facilitated the first derivatives, in the form of forward, an active derivatives market existed, with trading carried out at temples. One of the earliest written records of futures trading is in Aristotles Politics and he tells the story of Thales, a poor philosopher from Miletus who developed a financial device, which involves a principle of universal application. Thales used his skill in forecasting and predicted that the olive harvest would be exceptionally good the next autumn. Confident in his prediction, he made agreements with local olive-press owners to deposit his money with them to guarantee him exclusive use of their olive presses when the harvest was ready, the first modern organized futures exchange began in 1710 at the Dojima Rice Exchange in Osaka, Japan. The London Metal Market and Exchange Company was founded in 1877, but the market traces its origins back to 1571, before the exchange was created, business was conducted by traders in London coffee houses using a makeshift ring drawn in chalk on the floor. At first only copper was traded, lead and zinc were soon added but only gained official trading status in 1920. The exchange was closed during World War II and did not re-open until 1952, the range of metals traded was extended to include aluminium, nickel, tin, aluminium alloy, steel, and minor metals cobalt and molybdenum. The exchange ceased trading plastics in 2011, the total value of the trade is around $US11.6 trillion annually. The United States followed in the early 19th century, Chicago has the largest future exchange in the world, the Chicago Mercantile Exchange. In March 2008 the Chicago Mercantile Exchange announced its acquisition of NYMEX Holdings, Inc. the parent company of the New York Mercantile Exchange, cMEs acquisition of NYMEX was completed in August 2008. For most exchanges, forward contracts were standard at the time, however, most forward contracts were not honored by both the buyer and the seller. In 1848 the Chicago Board of Trade was formed, Trading was originally in forward contracts, the first contract was written on March 13,1851
25.
Paris Bourse
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The Paris Bourse is the historical Paris stock exchange, known as Euronext Paris from 2000 onwards. The building, known as the Palais Brongniart, is located in the Place de la Bourse, in the II arrondissement, historically, stock trading took place at several spots in Paris, including rue Quincampoix, rue Vivienne, and the back of the Opéra Garnier. Brogniart had spontaneously submitted his project, which was a rectangular neoclassical Roman temple with a giant Corinthian colonnade enclosing a vaulted and arcaded central chamber and his designs were greatly admired by Napoleon and won Brogniart a major public commission at the end of his career. Initially praised, the building was attacked for academic dullness. The authorities had required Brogniart to modify his designs, and after Brogniarts death in 1813, Labarre altered them even further, from 1901 to 1905 Jean-Baptiste-Frederic Cavel designed the addition of two lateral wings, resulting in a cruciform plan with innumerable columns. According to the architectural historian Andrew Ayers, these alterations did nothing to improve the reputation of this uninspiring monument. From the second half of the 19th century, official stock markets in Paris were operated by the Compagnie des agents de change, the number of dealers in each of the different trading areas of the Bourse was limited. There were around 60 agents de change, in Paris, only agents de change could receive a commission, at a rate fixed by law, for acting as an intermediary. However, parallel arrangements were usual in order to some clients quote. The Commodities Exchange was housed in the building until 1889. Moreover, until about the middle of the 20th century, a market known as La Coulisse was in operation. Until the late 1980s, the market operated as an open outcry exchange, in 1986, the Paris Bourse started to implement an electronic trading system. This was known generically as CATS, but the Paris version was called CAC, by 1989, quotations were fully automated. The Palais Brongniart hosted the French financial derivatives exchanges MATIF and MONEP, in the late 1990s, the Paris Bourse launched the Euronext initiative, an alliance of several European stock exchanges. List of works by James Pradier External sculpture Lehmann, P. -J,1991 La Bourse de Paris, Paris, Dunod. 1997 Histoire de la Bourse de Paris, Paris, PUF, muniesa, F.2005 Contenir le marché, la transition de la criée à la cotation électronique à la Bourse de Paris, Sociologie du Travail 47, 485-501. Walker, D. A.2001 A factual account of the functioning of the nineteenth-century Paris Bourse, European Journal of the History of Economic Thought 8, 186-207. Foucault, T. and Hillion, P.1997 Microstructure des marchés financiers, institutions, modèles et tests empiriques, Paris, hamon, J.1995 Marché dactions, architecture et microstructure, Paris, Economica
26.
Euronext Amsterdam
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The Amsterdam Stock Exchange is the former name for the stock exchange based in Amsterdam. It merged on 22 September 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext, the Amsterdam Stock Exchange was established in 1602 by the Dutch East India Company for dealings in its printed stocks and bonds. It was subsequently renamed the Amsterdam Bourse and was the first to begin trading in securities. Although it is considered to be the first stock market, Fernand Braudel argues that this is not precisely true, It is not quite accurate to call the first stock market. The statutes of Verona in 1318 confirm the existence of the settlement or forward market, in 1428, the jurist Bartolomeo de Bosco protested against the sale of forward loca in Genoa. All evidence points to the Mediterranean as the cradle of the stock market, but what was new in Amsterdam was the volume, the fluidity of the market and publicity it received, and the speculative freedom of transactions. That said, it remains the first incarnation of what we could today recognize as a stock market, the European Option Exchange was founded in 1978 in Amsterdam as a futures and options exchange. In 1983 it started a market index, called the EOE index. It should be noted that forward contracts, options, and other sophisticated instruments were traded on the Amsterdam Stock Exchange well before this, in 1997 the Amsterdam Stock Exchange and the EOE merged, and its blue chip index was renamed AEX, for Amsterdam EXchange. It is now managed by Euronext Amsterdam, on 3 October 2011, Princess Máxima opened the new trading floor of the Amsterdam Stock Exchange. The former Stock Exchange building was the Beurs van Berlage, the Amsterdam stock exchange is considered the oldest “modern” securities market in the world. It was shortly after the establishment of the Dutch East India Company in 1602 when equities began trading on a basis as a secondary market to trade its shares. Prior to that, the market existed primarily for the exchange of commodities, in that year, the States General of the Netherlands granted the VOC a 21-year charter over all Dutch trade in Asia and quasi-governmental powers. The monopolistic terms of the charter granted the VOC complete authority over trade defenses, war armaments. The first multi-national corporation with significant resource interests was thereby established, in addition, the high level of risk associated with trade in Asia gave the VOC its private ownership structure. In the Amsterdam East India House alone,1,143 investors subscribed for over ƒ3,679,915 or €100 million in today’s dollars, the subscription terms of each stock purchase offered shareholders the option to transfer their shares to a third party. Quickly a secondary market arose in the East India House for resale of this stock through the official bookkeeper. After an agreement had been reached between the two parties, the shares were transferred from seller to buyer in the “capital book. ”The official account, held by the East India House, encouraged investors to trade
27.
Euronext Lisbon
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Euronext Lisbon is a stock exchange in Lisbon, Portugal. It is part of Euronext pan-European exchange, Euronext Lisbon trades equities, public and private bonds, participation bonds, warrants, corporate warrants, investment trust units, and exchange traded funds. The BVL General index is the exchanges official index, and includes all listed shares on the official market, Derivatives include long-term interest rate futures, three-month Lisbor futures, stock index futures and options on the PSI-20 Stock index, and Portuguese stock futures. Trading hours are 8 a. m. to 4,30 p. m. Monday through Friday, the predecessor of the Bolsa de Valores de Lisboa was created in 1769 as the Assembleia dos Homens de Negócio in the Praça do Comércio Square, Lisbon downtown. In 1891, the Bolsa de Valores do Porto in Oporto was founded, after the military coup on April 25,1974, both the Lisbon and Porto stock exchanges were closed by the revolutionary National Salvation Junta. The Euronext Lisbon was formed in 2002 when the shares of Bolsa de Valores de Lisboa e Porto were acquired by Euronext N. V. BVLP, the Portuguese exchange, was formed in the 1990s restructuring of the Lisbon Stock Exchange association and the Porto Derivatives Exchange Association. At the end of 2001,65 companies were listed on BVLP-regulated markets, from January to December 2001, a total of 4.7 million futures and options contracts were traded on the BVLP market. In 2007, after the merger of Euronext and NYSE, Euronext Lisbon joined the new NYSE Euronext group, in June 2014 Euronext completed an initial public offering making it again a standalone company. List of European stock exchanges PSI-20 Portuguese Securities Market Commission Euronext Amsterdam Euronext Brussels Euronext Paris Euronext
28.
CAC 40
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The CAC40 is a benchmark French stock market index. The index represents a measure of the 40 most significant values among the 100 highest market caps on the Euronext Paris. It is one of the national indices of the pan-European stock exchange group Euronext alongside Brussels BEL20, Lisbons PSI-20. The CAC40 takes its name from the Paris Bourses early automation system Cotation Assistée en Continu and its base value of 1,000 was set on 31 December 1987, equivalent to a market capitalisation of 370,437,433,957.70 French francs. In common with many major world markets, its all-time high to date was reached at the peak of the dot-com bubble in September 2000. On 1 December 2003, the weighting system switched from being dependent on total market capitalisation to free float market cap only. The CAC40 index composition is reviewed quarterly by an independent Index Steering Committee, if any changes are made, they are effected a minimum of two weeks after the review meeting. At each review date, the companies listed on Euronext Paris are ranked according to free float market capitalisation, if a company has more than one class of shares traded on the exchange, only the most actively traded of these will be accepted into the index. The CAC40 is a capitalization-weighted index, the number of shares issued of a company is reviewed quarterly, on the third Friday of March, June, September and December. Since December 2003, the weightings of companies in the index have been capped at 15% at each quarterly index review. A capping factor is used to limit the weights to 15%, although the CAC40 is almost exclusively composed of French-domiciled companies, about 45% of its listed shares are owned by foreign investors, more than any other main European index. German, Japanese, American and British investors are amongst the most significant holders of CAC40 shares and this large percentage is due to the fact that CAC40 companies are more international, or multinational, than any other European market. CAC40 companies conduct over two-thirds of their business and employ over two-thirds of their workforce outside France, the index consists of the following companies as of the quarterly update effective 1st December 2016. The most recent composition can be found on euronext website, category, CAC40 CAC Next 20 List of French companies Official Euronext page for CAC40 Index FCHI, Summary for CAC40 INDEX - Yahoo. Finance Thomson Reuters page for. FCHI Bloomberg page for CAC, IND CAC40 on Investing. com Contains real time overview, components, historical data, live charts, technichal analysis and related news
29.
BEL 20
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The BEL20 is the benchmark stock market index of Euronext Brussels. In general, the index consists of a minimum of 10, since 20 June 2011, the BEL20 has contained 20 listings. The composition of the BEL20 index is reviewed annually based on closing prices on the last Friday in February and these changes are effective after the third Friday of March. In addition, a candidate for inclusion must possess a free float market capitalisation of at least 300000 times the price of the index on the last trading day of December. The minimum requirement for a constituent to remain in the index is a market cap of 200000 times the index value. At each annual review, the weights of companies in the index are capped at 15%, the BEL20 is a capitalization-weighted index. The following 20 stocks make up the BEL20 as of 20 March 2017, bloomberg page for BEL20, IND Official BEL20 composition and prices from Euronext BEL20 Rule book Reuters page for. BFX
30.
Financial history of the Dutch Republic
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The financial history of the Dutch Republic involves the interrelated development of financial institutions in the Dutch Republic. Institutions like the Amsterdam stock exchange, the Bank of Amsterdam, in the course of time the invested capital stock generated its own income stream that caused the capital stock to assume enormous proportions. The Netherlands came to dominate the international capital market up to the crises of the end of the 18th century that caused the demise of the Dutch Republic, in contrast to that general history this is a sectoral history, concerning the fiscal and financial sector. Ironically, the Habsburg rulers themselves pushed through the reforms that gave the rebellious provinces the wherewithal to resist the power of the sovereign. Emperor Charles V needed to increase the capacity of his government to finance his many military adventures. To that end it was necessary to put in place a number of reforms that would ensure that the public debt could be adequately serviced. These permanent taxes, collected by the provinces, would enable the provinces to pay enlarged subsidies to the central government. Holland was now able to credit of its own, as the province was able to retire bond loans previously placed under compulsion as enforced loans. By this it demonstrated to potential creditors it was worthy of trust and this brought a market for voluntary credit into being that previously did not exist. This enabled Holland, and other provinces, to float bonds at a reasonable interest rate in a pool of voluntary investors. The central government did not enjoy this good credit, on the contrary, its financing needs increased tremendously after the accession of Philip II, and this led to the crisis that caused the Revolt. This brought about a revolt in the Netherlands, particularly in the northern provinces. Those were able to withstand the onslaught of the royalist forces militarily, of course, they now withheld the subsidies to the central government their taxes were supposed to finance. That central government was forced to finance the war by transfers from other Habsburg lands. This led to an increase in the size of the Spanish public debt, which that country was ultimately unable to sustain. The constitution of the new Republic, the Union-of-Utrecht treaty of 1579 and it put in place a rudimentary confederal budget system that charged the Raad van State with drafting an annual Staat van Oorlog. This budget was presented in a General Petition to the States-General for approval, the treaty next required that the tax revenues for the financing of this budget would be levied. equally in all united provinces, and at the same rate. Furthermore, it prohibited internal tariffs and other taxes discriminating against residents of other provinces, alas, these two latter provisions were never implemented
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Tulip mania
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Tulip mania or tulipomania was a period in the Dutch Golden Age during which contract prices for bulbs of the recently introduced tulip reached extraordinarily high levels and then suddenly collapsed. At the peak of tulip mania, in March 1637, some single tulip bulbs sold for more than 10 times the income of a skilled craftsworker. The term tulip mania is now often used metaphorically to refer to any large economic bubble when asset prices deviate from intrinsic values, the 1637 event was popularized in 1841 by the book Extraordinary Popular Delusions and the Madness of Crowds, written by British journalist Charles Mackay. According to Mackay, at one point 12 acres of land were offered for a Semper Augustus bulb, Mackay claims that many such investors were ruined by the fall in prices, and Dutch commerce suffered a severe shock. Although Mackays book is a classic, his account is contested, many modern scholars feel that the mania was not as extraordinary as Mackay described and argue that not enough price data are available to prove that a tulip bulb bubble actually occurred. Research is difficult because of the economic data from the 1630s—much of which come from biased. Some modern economists have proposed rational explanations, rather than a speculative mania, for the rise, for example, other flowers, such as the hyacinth, also had high initial prices at the time of their introduction, which immediately fell. The high asset prices may also have driven by expectations of a parliamentary decree that contracts could be voided for a small cost—thus lowering the risk to buyers. Tulip bulbs were soon distributed from Vienna to Augsburg, Antwerp and he planted his collection of tulip bulbs and found they were able to tolerate the harsher conditions of the Low Countries, shortly thereafter the tulip began to grow in popularity. The tulip was different from other flower known to Europe at that time. The appearance of the tulip as a status symbol at this time coincides with the rise of newly independent Hollands trade fortunes. No longer the Spanish Netherlands, its resources could now be channeled into commerce. Amsterdam merchants were at the center of the lucrative East Indies trade, as a result, tulips rapidly became a coveted luxury item, and a profusion of varieties followed. They were classified in groups, the tulips of red, yellow, or white were known as Couleren, the multicolored Rosen, Violetten, and the rarest of all. The multicolor effects of intricate lines and flame-like streaks on the petals were vivid and spectacular, growers named their new varieties with exalted titles. Many early forms were prefixed Admirael, often combined with the growers names, generael was another prefix used for around thirty varieties. Later varieties were given even more extravagant names, derived from Alexander the Great or Scipio, or even Admiral of Admirals, however, naming could be haphazard and varieties highly variable in quality. Most of these varieties have now died out, tulips grow from bulbs, and can be propagated through both seeds and buds
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Whaling in the Netherlands
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Whaling in the Netherlands was a centuries-long tradition. The history of Dutch whaling begins with 17th-century exploration of Arctic fishing grounds, the current Dutch government supports a moratorium on all whaling worldwide. The beginnings of Dutch whaling are indirectly attributed to Willem Barentsz, who was a Dutch navigator and explorer, on his last voyage, Barentsz accompanied Jacob van Heemskerck as pilot, and Gerrit de Veer, the historian of the voyage, was on board as first mate. This expeditions discovery of the Arctic archipelago of Spitsbergen was to become the foundation for lucrative Dutch claims to the grounds in. In the fierce competition for the best whaling grounds, the Dutch construed that that other nations had less right to hunt whales in waters which had discovered by Dutch explorers. The development of Dutch whaling and sealing saw changes in the composition of crews, in shipbuilding technology, in governmental involvement and in the profitability of the industries. The numbers of whaling ships outfitted in the Netherlands grew rapidly—more than doubling in a decade to 70 ships in 1654, Whaling in the waters around Spitsbergen shifted after 1670 because of a modification of the whales migratory patterns. In 1684,246 Dutch whalers captured 1,185 whales in the waters off Spitsbergen, typically, whaling expeditions hunted the Bowhead whale, which is a slow-moving unhurried creature which yields plenty of oil. Their high percentage of fat also meant that they floated when dead and. Especially Föhr island has been recorded as a stronghold of whaling personnel, at the height of Dutch whaling in the year 1762,1,186 seamen from Föhr were serving on Dutch whaling vessels alone and 25% of all shipmasters on Dutch whaling vessels were people from Föhr. Dutch supremacy in whaling over other European competitors like France, Germany, amongst the political and economic consequences of the Treaty of Amiens was that control of the Cape of Good Hope was wrested from the British and restored to the Netherlands. This reanimated the prospects for profitable Dutch whaling in the antipodes, in remarks at the opening of an exhibit of paintings which, in part, focus on Dutch whaling, the Dutch Ambassador to the Court of St. We learned to harness the sea, however, like a horse and our national identity can be easily traced back to the whims of the water. It is the Dutch and Flemish masters of the 16th and 17th centuries who have indeed come close to conquering the sea by fixing its capriciousness on panel and canvas. The economic success of the Dutch Republic was inextricably linked with the sea as were the national identity. Many in the Netherlands earned their fortune in Arctic whaling, however the success of whaling scenes in Netherlandish painting cannot be explained by economic interest. Dutch culture and language were also exported by whalers from abroad who hired on Dutch vessels. E. g. the North Frisian dialect Fering adopted a number of popular Dutch and West Frisian personal name forms, and many loanwords from the Dutch language to Fering are still in use today
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Hollander beater
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A Hollander beater is a machine developed by the Dutch in 1680 to produce paper pulp from cellulose containing plant fibers. It replaced stamp mills for preparing pulp because the Hollander could produce in one day the same quantity of pulp it would take a stamp mill eight days to prepare. However, the paddles and beating process of a stamp mill produced longer, more easily hydrated. The Hollander used metal blades and an action to cut the raw material, resulting in shorter cellulose fibers. Further, the blades of the Hollander often introduced metal contaminants into the paper as one metal blade struck another. These contaminants often acted as catalysts for oxidation that have been implicated in foxing, in turn, the Hollander was replaced by the conical refiner (or Jordan refiner, named after its inventor Joseph Jordan. A Hollander beater design consists of a circular or ovoid water raceway with a wheel at a single point along the raceway. The beater wheel is a compressor or radial impeller cylinder parallel to a grooved plate. Under power, the rotate to beat the fiber into a usable pulp slurry. The beater wheel and plate do not touch, as this would result in cutting, the distance between the two is adjusted to increase or decrease the pressure on the fibers when passing through the beater. The objective of using a beater is to longer, hydrated, fibrillated fibers. Grinding of fibers is not desirable, the Paper Project Ontario Science Centre Tools for Paper Madgoose Press Medieval Paper Technology
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History of chocolate
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The history of chocolate begins in Mesoamerica. Fermented beverages made from chocolate date back to 1900 BC, the Aztecs believed that cacao seeds were the gift of Quetzalcoatl, the god of wisdom, and the seeds once had so much value that they were used as a form of currency. Originally prepared only as a drink, chocolate was served as a bitter, frothy liquid, mixed spices, wine. It was believed to have powers and to give the drinker strength. Today, such drinks are known as Chilate and are made by locals in the South of Mexico. After its arrival to Europe in the century, sugar was added to it and it became popular throughout society, first among the ruling classes. In the 20th century, chocolate was considered a staple, essential in the rations of United States soldiers at war, the word chocolate comes from the Classical Nahuatl word chocolātl, and entered the English language from the Spanish language. Cultivation, use, and cultural elaboration of cacao were early and extensive in Mesoamerica, when pollinated, the seed of the cacao tree eventually forms a kind of sheath, or ear,20 long, hanging from the branches. Within the sheath are 30 to 40 brownish-red almond-shaped beans embedded in a viscous pulp. While the beans themselves are bitter due to the alkaloids within them, evidence suggests that it may have been fermented and served as an alcoholic beverage as early as 1400 BC. While researchers do not agree which Mesoamerican culture first domesticated the cacao tree, scientists have been able to confirm its presence in vessels around the world by evaluating the chemical footprint detectable in the microsamples of contents that remain. Ceramic vessel with residues from the preparation of chocolate beverages have been found at sites dating back to the Early Formative period. For example, one vessel found at an Olmec archaeological site on the Gulf Coast of Veracruz. On the Pacific coast of Chiapas, Mexico, a Mokayanan archaeological site provides evidence of cacao beverages dating even earlier, earliest evidence of domestication of the cacao plant dates to the Olmec culture from the Preclassic period. The Olmecs used it for religious rituals or as a medicinal drink, little evidence remains of how the beverage was processed. The Mayan people, by contrast, do leave some surviving writings about cacao which confirm the identification of the drink with the gods. The Dresden Codex specifies that it is the food of the rain deity Kon, the consumption of the chocolate drink is also depicted on pre-Hispanic vases. By 1400, the Aztec empire took over a part of Mesoamerica
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