Chapter 1-3

• 3000-5000 BC Mesopotamian Investment.

  Investment assets are limited to: a. Agriculture b. Land c. Estates
• 800-300 BC Greek Investment.

  There was a development of partnership for long-distance trade in the Mediterranean world and development of banking partnerships for loan-making activity since “Lending” was common in this period, including the use of maritime loans and the use of interest for profit.
• 500 BC-AD 400 Roman Investment.

  Notable for the first known Pension-Roman soldiers which granted them estates far from the city of Rome.
• 1000-1200 Rise of Cities and Economic Rebirth

  This period is called the Medieval Period also known as the “Dark ages”. It was a period of economic and technological stagnation because of the fall of the Roman Empire in these times.
• 1200-1500 The European Renaissance

  This is the period when Accounting was discovered.
• 1550 -1600 Joint-Stock Companies

  It is considered one of the three key events in the development of the modern financial system.
• 1600-1787 Advent of Public Markets

  The period when the first public markets were developed whose purpose was to connect potential investors with investment opportunities.
• 1759 Presbyterian Ministers’ Fund Establishes Pensions

  The fund provided insurance-style pensions for premium-paying ministers and their families. It was considered as the first modern pension fund established.
• 1760-1840 First Industrial Revolution

  This period witnessed numerous technological innovations such as: a. Steam power b. Improved Iron Manufacturing
• 1860-1914 Second Industrial Revolution

  This period fueled the democratization of investment that began in the First Industrial Revolution.
• 20th Century: Development of Investment Theory

  This period brought great leaps forward in the development of investment theory. Louis Bachelier, the father of Mathematical Finance, made unprecedented use of advanced mathematics to calculate the value of derivatives. He introduced important concepts in asset pricing, risk and portfolio management, and the evaluation of investment managers’ performance.
• 1929-1939 The Great Depression

  This period brought a decade of economic contraction around the world because of some economic difficulties in the late 1920s.
• 1933-1937 Depression-Era Reforms -

  This era is where a series of reforms were formed: a. The Securities Act of 1933 b. The Banking Act of 1933 c. The Securities Exchange Act of 1934 d. The Social Security Act of 1935 e. The Revenue Act of 1936
• 1950s-1990s

  Financiers developed new kinds of investments, demonstrating a shift toward innovation, independence, and entrepreneurship in the financial sector. These vehicles included: a. Hedge funds b. Private Equity c. Venture Capital d. Real Estate Investment Trusts (REITs)
• 1961: Insider Trading Regulations Tightened

  This was a major landmark in enforcement against unfair financial dealing and the democratization of investment.
• 1970s-1900s Index Funds and ETFs -

  Index Funds and Exchange-Treaded Funds (ETF) were created in the late twentieth century as a relatively simple, low-free investment opportunity. Jack Bogle, created the first index fund in 1976, and the first ETF was created in 1993.
• 1974: The Employee Retirement Income Security Act - ERISA – in 1974 was one of the most notable events in modern finance. It leads to a rapid development of new investment opportunities for the wider public, making investment more democratic.
• 1980s: Financial Fraud in America -

  This was a period when a series of legal cases arose regarding financial fraud which involved personalities like Dennis Levine, Michael Milken, and Ivan Boesky, who faced jail time for committing such an offense.
• 2007-2009: The Great Recession -

  This is a period of worldwide economic contraction, with the global financial crisis peaking in 2008. It was caused by a major housing bubble and the overly risky use of mortgage-back securities.
• 2000s 21st Century

  The period where the advancements in investment theory, and the development of an efficient and market-matching investing techniques were born.