Auroran Stock Exchange: Difference between revisions
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== History ==
The Royal Bursil Merchant's Guild controlled a vast network of trade routes that became increasingly complex and brought together many merchants. Thus, they created the Royal Bursil Merchant's Market. This market was by invite only, and these merchants traded in contracts. These were basically promises by one merchant to undertake some task, produce some good or promise to pay another for such goods and services rendered. Then they could further buy and sell these "promises" from one another. These were the foundations of modern financial instruments such as futures, options and forwards, and this created the foundations for the bond market.
▲al Bursil Merchant's Guiwas formed by owners of ships known then as merchants. These merchants were responsible for sending ships to foreign nations to trade in various goods.his organisation was established to coordinate the activities of merchants in the Burisaye-Celidizia area. The sponsors of the expeditions, crews and ships of these merchants were often wealthy land-owning aristocrats and courtiers at the [[Sani Bursil Royal Palace]]. d to
This guild established the Royal Bursil Merchant Bank in 14th century during the reign of [[Lambertus II]] to finance, underwrite and facilitate these trades. The Royal Bursil Merchant Bank held gold for the participating merchants who in turn used certificates and tokens to make agreements and trades. The gold was stored safely at Waldmouth Castle, property of the 6th Earl of Waldmouth, Rydion Kirdin. The Royal Bursil Merchant Bank began extending its depository and financing services to the public. The Royal Bursil Merchant Bank experienced three bank runs which His Majesty’s Treasury often bailed them from (situations were the bank did not have sufficient gold in its vault to pay depositors and chequors for all the certificates and tokens they had).
Thus, this eventually forced the Treasury under King [[Gustav I]] to regulate the bank by demanding fractional reserve banking. When Queen [[Rosamund I]] began curtailing the power of the merchant banks and making the Kirib the official currency, the value of the Kirib was prone to fluctuations which the merchants felt that they could exploit. Thus, Royal Bursil Merchant Market began to buy and sell Kiribs using "promissory contracts" whereby one person would agree to buy or sell Kirib for gold at a future date giving rise to the seeds for ideas about notional trading and long and short positions in finance.
The Guilds gradually became replaced by companies as the Crown granted sophisticated charters that birthed modern principles of company law. As such a stake in the ownership of the profits of such entities could be bought and sold through the trade of certificates of ownership known as corporate papers. This led to the market being renamed the "Royal Bursil Paper's Market". This was obviously not as sophisticated as modern notions of equity but it did begin to add complexity to companies that could be exploited for profit. The idea of these certificates or corporate papers became increasingly known as stock as purchasers were given right to the value of the assets after debts were paid and not merely profits.
As such the Paper's Market became the Sani Bursil Stock Exchange. Due to a refusal by [[Gustav II]] to grant a Royal Charter in light of a dispute over payments to the Treasury, the market did not receive the epithet "Royal". Equities, bonds, and currency exchange had become well-known concepts among the wealthy and educated. When the Kirib Monetary Union was founded due to treaties signed by [[Florence II]], the exchanged changed its name to the Auroran Stock Exchange as it allowed companies outside of Great Morstaybishlia to sell their stock in its Halls. Despite a willingness by the monarch to grant a royal charter, the name was not altered to have the "Royal" epithet.
The ASE continued as a stock exchange. When the telegram was invented trading could be done from farther afield. When telephone was invented, people could call in to make trades while there were people on the floor to facilitate these trades. These became known as brokers. As other countries started their own exchanges, brokers who made themselves and their clients profits due to the variance in currencies etc., the modern industry of arbitrages developed. The idea of putting companies on a list based on various factors emerged and the ASE became much more strict with the companies they listed. This held to develop the idea of Standard Accounting and Reporting.
The invention of the computer allowed for modern trading to emerge whereby investors could put in orders and the computer would make trades based on the conditions in the order on behalf of the trader. The invention of the Internet significantly expanded the ability to distribute information about the trades and required more robust ethical limitations. The establishment of the [[Auroran Continental Assembly]] and the regulatory environment it created helped to propagate the ASE's regulatory influence.
== Regulatory influence ==
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