Business Economics Coursework Example | Topics and Well Written Essays - 10000 words

Business Economics - Coursework Example The explanations of three different markets are given and also the relationship between them is given in it. In the research methodology the methodology adopted to conduct research is explained. The stock market, the currency market and property market are perhaps the three largest markets in terms of size of business transactions in a country. People around the world invest money in these commodities with the expectation of getting a fair return on their investment.. The first item of commodity to be traded was undoubtedly the property market. This was followed by the stock market in the 1750's and followed by the present form of currency market in 1973. This paper studies the predictability, relations and correlations between the stock, currency and the property markets. It is true that there exists a relationship among the three. It has to be seen whether a rise or fall in the stock value affect the other two or will a change in the value of the currency market affect stock market or property market. Similarly will a change in the property market affect stock and currency market. The stock market and its early days: Evidence show that trading in stock in the United Kingdom existed even in the sixteenth century. Trading in stocks during that period was much higher in Amsterdam and Paris and oldest share issue in history is the issue of was in 1606 in Amsterdam by the company Camere Amsterdam and it was called Dutch Vereinigte Oostindische Compaignie (VOC) share certificate. After another two years he could safely assume that besides the second VOC share (held by the Amsterdam Stock Exchange) and other securities from the company, his piece was the oldest share certificate in the world. (Oldest Share in the World. 1606). Though no stock exchange existed till the opening of the London stock exchange, there was a market for securities and it was known as the Royal exchange. In those days most companies formed out of joint stock was engaged in international trade and shipping. The East India Company, The Hudson Bay Company and the Royal African Companies were the major existing at that time. Gradually, joint stock companies in other areas of business like banking and water supply Till 1689, only about fifteen joint stock companies existed in Britain, but this rose rapidly to 150 within a span of seven years. The French Revolution caused the economy in France to collapse and as a result, trading in stocks increased on volume in England The London Stock Exchange was officially started in 1772 with the purpose of a properly organized structure to control the growing number of companies and the volume of trade in securities. "In the eighteenth century company shares continued to be an important driving force behind the expansion of the securities market in London". (Michie P. 17). Even though a majority of stock trading ins done in Europe US and Japan, in recent years many countries from Asia have also become large markets. Property and Property Markets: The most sought after form of investment in the world before the advent of the stock and currency was in property. Property is defined as "ownership; right of possession, enjoyment, or disposal of anything, esp. of something tangible: to have property in land." (11 result for property. 2006). Here property refers to land and property market is trading in property. Prop