Stock Trading In A Foreign Country

The world is becoming a smaller place and it is often called a global village in today’s
times. People have an inborn wish to be a part of a distant business, and today this idea has
gone into trading on an international level. As globalization is encouraged for trade reasons, the
individual trader today finds it easier to be a part of a stock market across the globe.
History
If you want to understand a little more about trading stocks on international levels, it would do
you good to know a little about the history of the same. It is said that the trading of stock was
first initiated in Cairo in the eleventh century. The Muslims of the region traded with the Jews
who were merchants there. Then in the twelfth century, farmers from France began trading their
agricultural produce using debiting systems they were given by banks at the time. Their goods
were looked upon much as we see market commodities today, and judged for their worth in the
market at the time.
The Amsterdam Stock Exchange initiated an official and formal stock exchange in year
sixteen hundred and two. Dutch’s East India Company was the first company to list itself on this
stock exchange in Amsterdam. And so this company holds the record of being the first ever to hold a
listed stock at any exchange. Things could have changed a little since then, but the idea behind
a stock exchange remains very much the same to this very day.
Trading across borders
It is natural for a company to want to grow by trading across political boundaries. At present the
European Union consists of twenty-five countries. The stock markets of the continent are trying
to facilitate legal trading across borders, and the system is under the governance of this union at
present. Across the Pacific, the New York Stock Exchange is trying to achieve the same.
International trade with offshore companies is allowed at present, although restrictions are
enforced so as not to let anything go wrong in the future. Cross-border trading is not a new idea,
and history tells us it is best monitored in any form, so as not to risk tensions.
No restrictions
However, countries today are trying to bring about a global change in the principles of trading
stock where the restrictions on individual investors would be at a minimum ever. The traders in
turn are waiting with their fingers crossed, and we suspect they won’t have to wait long. With
globalization already a reality, it won’t be long before investors are allowed to freely trade with
companies across the border. This will help the markets rise like never before.