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The concept of trading shares on the market originated in the 1600s by the Dutch. It involves dividing a corporation into fractions that can be owned. When you buy or sell a share on a stock exchange, you are transacting with another investor, not the corporation itself. The evolution of this concept has seen a shift from physical trading spaces like Dutch coffee houses to electronic platforms. However, the underlying principle remains the same.
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'The market' is short-hand for the many stock exchanges around the world. In the U.S., the best known is the New York Stock Exchange or NYSE. The concept of trading shares on the market has been around since the Dutch invented the idea in the 1600s, dividing up a corporation into fractions that can be owned. When you buy or sell a share on a stock exchange you are buying it from, or selling it to, another investor, not to the corporation itself. Today, a lot of the actual buying and selling is done electronically rather than in a Dutch coffee house, but the principle is the same.
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