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The world's first system of joint stock companies was born in 1602 with the East India Company, which was established in the Netherlands. After the emergence of the joint-stock company, it was soon widely used in Western countries and became one of the important forms of enterprise organization in European countries.

Like the more famous British East India Company, it is similar to a company limited by shares.

With the birth and development of joint-stock companies, the method of raising funds in the form of shares has also developed, and there has been a demand for buying and selling transactions to transfer shares. In this way, it has led to the emergence and formation of the stock market, and promoted the improvement and development of the stock market.

In 1611, the shareholders of the East India Company traded shares on the Amsterdam Stock Exchange, and later there was a special broker to match the deals.

The Amsterdam Stock Exchange formed the world's first stock market. Nowadays, in the West, a company limited by shares has become one of the most basic forms of corporate organization; Stocks have become an important channel and way for large enterprises to raise funds, and they are also the basic choice of investors for investment. The stock market (including the issuance and trading of stocks) and the bond market have become important basic contents of the securities market.

After careful calculation, the stock market has been in Europe for 40 years, but the economic scale of those European countries is limited, and the development of the stock market is relatively slow.

In any case, the company itself has brought tangible benefits to Europe, and it is hard to imagine that a small country like the Netherlands, if it were not for the way in which the Guò Joint Stock Company operated, could have developed such a behemoth as the East India Company in such a short period of time.

Through the issuance of shares, enterprises can quickly raise much-needed funds, and then grow rapidly, while also sharing risks.

In Qin Mu's opinion. Risk-sharing is even more important than raising funds quickly at a time when the economy is running relatively slowly.

For example, at present, many Daqin merchants who are engaged in overseas trade buy their own boats, hire some boatmen, prepare goods and then go to sea to trade. Once in distress at sea, the ship is destroyed and the cargo sinks, even if the person does not die, it will be difficult to turn over in this life after returning.

If it's a company limited by shares, it's different, after the risk is apportioned. Its ability to resist risks naturally becomes stronger, and even if one or two ships are unfortunately sunk, it will not be lost.

In addition, with the arrival of the Great Qin Mission led by Zhang Haoran in Europe and the successful launch of a series of diplomatic activities in Europe, the time for the Great Qin's merchant ships to sail directly to Europe is not far off.

If it is still the current mode of going it alone, how many people are willing and able to fly directly to Europe, it is difficult to compare with large European companies such as the British East India Company in terms of competitiveness alone.

These are realistic considerations. Let Qin Mu feel that it is already very necessary to launch the stock market in Daqin. With his hundreds of years of experience, once Daqin's stock market is launched, it will definitely be better than the European stock market, which is still in its infancy.

At least laws like the Anti-Bubble Companies Act. We will not wait until a huge bubble economy has formed to know how to formulate it. In terms of financial auditing and supervision of listed companies, there will definitely be a lot of detours, coupled with the huge economic aggregate of Daqin, it is not a problem to catch up with and surpass Europe, which has developed for decades.

Now the imperial court is on annual leave. Qin Mu had to deal with relatively few military and political affairs every day, and after some time, he began to ponder this matter.

This is a matter that really needs to be pondered. Because stocks, in addition to the two positive effects of financing and risk sharing, also have a very dark side, which is more ruthless than cutting the throat with a knife.

But in any case, there are always pros and cons to everything, and the key depends on how to pursue the advantages and avoid the disadvantages.

In Qin's view, in order to promote the industrial revolution faster, in addition to the support of the financial system such as banks, joint-stock companies and stock exchanges are also essential.

In the past, Chinese liked to bury their money in the ground, perhaps to buy farmland, which would lead the economy of the whole society to a deformed development direction.

As society stabilizes for a longer period of time, wealth will inevitably become more and more concentrated, and what happens when wealth is concentrated in the hands of a small number of people who are keen to hide their money at home or bury it in the ground.

First of all, it is difficult for those who are interested in developing production to raise funds.

Second, there will be a shortage of money, and social goods will be produced, but there will not be enough money to support the circulation of goods. Deflation will bring about economic regression, which in turn will lead to social contradictions, and eventually inevitably fall into turmoil

If we can change this original habit of hiding money and let more funds circulate in society, there is no doubt that more benefits will be produced.

In the Huagai Palace, Qin Mu summoned Xu Yingjie and Xu Yongshun, and the three of them were talking about the matter in a casual chat.

The joy of the New Year is still there, the Huagai Hall is also newly decorated, the atmosphere in the hall is also relatively harmonious, Xu Yongshun listened to the stock matter, seemed a little excited, and praised it again and again.

"Your Majesty, although you can get a loan from the bank now, you have to bear a lot of interest, and some industries with low profits, just repaying the loan, will take up the business income, which is very unfavorable for the enterprise to become bigger and stronger.

If you can raise the required funds from the private sector through the issuance of shares, you will no longer have to bear bank interest, which is very conducive to the development of enterprises.

In addition, the emergence of a large number of stock companies can change the previous relatively decentralized economic model, and after the scattered funds are concentrated, the economic model will inevitably change to an intensive, large-scale, and high-efficiency shape. It is of great benefit to save resources and manpower, technological innovation, and so on.

For example, this is like changing from free-range farming to farm-style large-scale operation, which can save a lot of manpower and increase the ability to resist risks. ”

Xu Yongshun counted the benefits of stocks, and even the words were very trendy, from this point, you can see how much influence Qin Mu has on them.

Xu Yingjie thought for a while and said, "Your Majesty, now there are more and more deposits in the bank, and they have reached the amount of 750 million dragon coins. Although the interest on deposits is very low, or even none, it is not always a good thing that there is such a backlog of deposits in the banks;

At present, it is also possible to borrow money from individuals, workshops, and trading companies through guò to obtain interest to balance the bank's income and expenditure, and if stocks are introduced, a large number of trading companies and workshops can raise funds through guò stock issuance, then the bank's loan business must be greatly impacted, and the risk of imbalance between the bank's income and expenditure will inevitably increase. ”

Qin Mu said with a smile: "Xu Qing's worries are not unreasonable, I know, what do you want." ”

Xu Yingjie complained first, naturally he had something else to ask for, and Qin Mu saw through it at a glance, he simply smiled: "Your Majesty is wise, and the minister does not hide it, what the minister just said is indeed not alarmist, Majesty Imagine, if the bank's loan does not have too many bad debts, the choice of lending objects must be those workshops and trading companies that have good development and may have development potential."

And once the stock model is introduced, these well-developed or promising factories, trading companies, and companies will be able to raise funds from the stock market, and where will they be willing to bear the interest of the bank?

The biggest source of income for banks is the lending business, so it is difficult for banks to maintain their balance of payments, so to ensure that banks can continue to maintain, banks must be allowed to invest some of their funds in the stock market. ”

Qin Mu said: "The banking system is the cornerstone of finance, Xu Qing can rest assured, I will naturally not watch the banks being squeezed down, banks and the stock market, in fact, belong to the same financial system, and there can be many complementarities." Xu Qing asked those in the bank who specialize in finance to study it, and they can slowly launch some wealth management products, as for putting part of the bank's funds into the stock market operation, this can be considered, but it must also be cautious.

In addition, the rules of the securities market and the financial supervision system should also be formulated by Xu Qing's organizers, and first of all, it is necessary to prevent the large-scale spread of the bubble economy. In order to raise funds, enterprises exaggerate their performance and create bubbles, which is predictable;

In order to put an end to these phenomena, we can only improve the financial audit and supervision system. In addition, the corresponding law is formulated to impose penalties, so this matter also needs to strengthen communication with the Dali Temple in charge of legislation. ”

When Xu Yongshun heard this, he was a little disappointed, according to what the emperor said, it seemed unlikely that a stock exchange would be established soon.

First of all, Dali Temple must have corresponding legislation, and then the Ministry of Household formulates the corresponding financial review system, these procedures go down, I am afraid that there is no one and a half years is not possible. (To be continued......)