Finance has evolved significantly over centuries, adapting to the changing needs of economies and societies. Early forms of finance can be traced back to ancient civilizations, where basic banking functions were performed by temples and palaces.
Notable milestones in the history of finance include:
- Ancient Banking: Temples in Mesopotamia served as early banks, safeguarding valuables and facilitating loans.
- Development of Currency: The use of coins began between 700 and 500 BCE, facilitating trade and economic expansion.
- Establishment of Stock Exchanges: The first stock exchange was opened in Antwerp in 1531, paving the way for modern financial markets.
- Modern Financial Theories: In 1952, Harry Markowitz introduced portfolio theory, laying the foundation for contemporary financial analysis.
These developments have shaped the finance industry into a complex and essential component of today’s global economy.