UvA-DARE (Digital Academic Repository) The world’s first stock exchange: how the Amsterdam market for Dutch East India Company shares became a modern securities market, 1602-1700 Petram, L.O. Link to publication Citation for published version (APA): Petram, L. O. (2011). The world’s first stock exchange: how the Amsterdam market for Dutch East India Company shares became a modern securities market, 1602-1700 Eigen Beheer General rights It is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). Disclaimer/Complaints regulations If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: http://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible. UvA-DARE is a service provided by the library of the University of Amsterdam (http://dare.uva.nl) Download date: 03 Jan 2019 CONTENTS List of figures VII List of tables VIII List of maps VIII List of abbreviations IX Introduction 1 Context, historiography and theory 2 Scope and structure 6 Sources 9 Part I – Taking the measure of the market 1 A chronology of the market 17 Introduction 17 1602 – The subscription 17 1607 – The emergence of a derivatives market 20 1609-10 – Isaac le Maire 24 1609-18 – First dividend distributions 28 1611 – Exchange building 30 1622 – The relation between the company and its shareholders 32 1630s and 1640s – Intermediation and a changing composition of the trading community 36 1660s – Trading clubs and rescontre 45 Conclusions 52 2 Long-term developments 59 Introduction 59 Market activity 59 Number of traders 64 Share price and dividends 65 Divergent developments: Amsterdam and peripheral markets 68 Conclusions 74 Part II – The organization of the market 3 Contract enforcement 91 Introduction 91 The legal framework 97 Private enforcement mechanism 107 Conclusions 114 Appendix – Short summary of court cases 115 4 Risk seeking and risk mitigation 118 Introduction 118 Counterparty risk 120 Portfolio risk 134 Conclusions 145 5 Information 148 Introduction 148 Investors’ information needs in the first decade of the seventeenth century 150 Market reactions to information 156 The information networks of Christian and Jewish share traders 165 Conclusions 175 Conclusions 180 Epilogue – Reassessing Confusión de confusiones 186 Summary (in Dutch) 190 Appendices 196 Appendix A – Monthly share price Amsterdam chamber VOC, 1602-1698 196 Appendix B – Dividend distributions VOC, 1602-1700 204 Appendix C – Glossary 206 Acknowledgements 210 Bibliography 211 Primary sources 211 Published primary sources 211 Secondary literature 213 Index of names and places 219 VI .