The London Stock Exchange : A History

## Abstract Ranald Michie traces the history of the London Stock Exchange from its beginnings around 1700 to the end of the twentieth century, chronicling the challenges and opportunities it has faced, avoided, or exploited over the years. Throughout, the history seeks to blend an understanding of the London Stock Exchange as an institution with that of the securities market of which it was––and is––such an important component; one cannot be examined satisfactorily without the other. Without a knowledge of both, for example, the causes of the ’Big Bang’ of 1986 would forever remain a mystery. However, the history of the London Stock Exchange is not just worthy of study for what it reveals about the interaction between institution and market. Such was its importance that its rise to world dominance before 1914, its decline thereafter, and its renaissance from the mid‐1980s explain a great deal about Britain's own economic performance and the working of the international economy. In 2001, the London Stock Exchange will be 200 years old, though its origins go back a century before that. This book traces the history of the London Stock Exchange from its beginnings around 1700 to the present day, chronicling the challenges and opportunities it has faced, avoided, or exploited over the years. Throughout, the history seeks to blend an understanding of the London Stock Exchange as an institution with that of the securities market of which it was - and is - such an important component. One cannot be examined satisfactorily without the other. Without a knowledge of both, for example, the causes of the 'Big Bang' of 1986 would forever remain a mystery. However, the history of the London Stock Exchange is not just worthy of study for what it reveals about the interaction between institution and market. Such was the importance of the London Stock Exchange that its rise to world dominance before 1914, its decline thereafter, and its renaissance from the mid-1980s, explain a great deal about Britain's own economic performance and the working of the international economy. For the first time a British economic institution of foremost importance is studied throughout its entire history, with regard to the roles played and the constraints under which it operated, and the results evaluated against the background of world economic progress. Contents......Page 12 List of Figure and Tables......Page 13 Introduction......Page 16 1. From Market to Exchange, 1693–1801......Page 30 2. From Money to Capital, 1801–1851......Page 52 3. From Domestic to International, 1850–1914......Page 85 4. Shattered Dominance: The First World War, 1914–1918......Page 158 5. Challenges and Opportunities, 1919–1939......Page 185 6. The Changing Market Place Between the Wars......Page 250 7. New Beginnings: The Second World War, 1939–1945......Page 302 8. Recovery and Crisis, 1945–1949......Page 341 9. Drifting Towards Oblivion, 1950–1959......Page 378 10. Failing to Adjust, 1960–1969......Page 438 11. Prelude to Change, 1970–1979......Page 494 12. Big Bang......Page 558 13. Black Hole......Page 611 Conclusion......Page 651 Epilogue: Towards a Third Century......Page 658 Select Bibliography......Page 668 B......Page 680 C......Page 682 E......Page 684 G......Page 685 H......Page 686 I......Page 687 L......Page 688 M......Page 690 O......Page 691 R......Page 692 S......Page 693 T......Page 695 W......Page 696 Z......Page 697 This Book Traces The History Of The London Stock Exchange From Its Beginnings Around 1700 To The Present Day, Chronicling The Challenges And Opportunities It Has Faced, Avoided, Or Exploited Over The Years.--jacket. 1. From Market To Exchange, 1693-1801 -- 2. From Money To Capital, 1801-1851 -- 3. From Domestic To International, 1850-1914 -- 4. Shattered Dominance: The First World War, 1914-1918 -- 5. Challenges And Opportunities, 1919-1939 -- 6. The Changing Market Place Between The Wars -- 7. New Beginnings: The Second World War, 1939-1945 -- 8. Recovery And Crisis, 1945-1949 -- 9. Drifting Towards Oblivion, 1950-1959 -- 10. Failing To Adjust, 1960-1969 -- 11. Prelude To Change, 1970-1979 -- 12. Big Bang -- 13. Black Hole. Ranald C. Michie. Includes Bibliographical References And Index. Benefiting from unrivalled access to its archives, Professor Michie explores the changes that have taken place throughout the history of the London Stock Exchange and reveals the profound implications of these changes not only for the Stock Exchange itself, but also for the relationship between the government and the securities market. Complete with an introduction by Sir Nicholas Goodison, former Chairman of the Stock Exchange, this book provides an invaluableinsight into the way Britain's financial system has evolved over the centuries and the role it has played both at home and abroad As of 2001, the London Stock Exchange is 200 years old, though its origins go back a century before that. This text traces the history of the London Stock Exchange, chronicling the challenges and opportunities it has faced, avoided or exploited There existed in London a securities market long before a formal stock exchange was ever established.