History of the UK Stockmarket

The history of the London Stock Exchange dates back to the late 17th century, when John Castaing began listing stock and commodity prices in what is believed to have been the first recognisable manner. At this point, in the early formation of what we now see as the UK stockmarket, traders were operating in the streets of London or from the city's many coffee houses, as was the case for John Castaing.

The Stock Exchange

The Stock Exchange first became named as such in 1773 when a group of brokers erected a building in Sweeting's Alley. 28 years later the first regulated exchange opened its doors, marking the opening of the modern Stock Exchange.

Since this date there have been numerous changes in the regulation and operation of the London Stock Exchange (LSE). Most recently, in 2004, the organisation moved its headquarters to a new site in Paternoster Square. As you'd expect, the new site is still very much at the heart of London, being a short walk from St Paul's Cathedral.

How have UK shares performed historically?

Why invest in shares? The standard answer to this question is that shares have historically out-performed most other forms of investment when looking at long-term performance measures.

In real terms, let's take a look at the figures. Since 1918 the stock market has produced an annual return of some 11% on average. That's a significant sum - imagine trying to find a bank account that could offer a similar rate of interest!

Some people have started to turn away from the stock market and to look at UK property as an investment. This is driven by the booming property market of the past few decades, as evidenced by the Nationwide House Price Index showing annual growth of 9% since 1973.

Even with many turning to property as a means of safeguarding their future, the stockmarket is sure to remain popular.

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