Why do Stock Markets Exist? And Why is it So Important? A stock market is a public market where people can buy and sell shares on the stock exchange. The stocks, also known as equities, represent ownership in the company. Stock markets have existed for centuries. The oldest stock exchange was started in Belgium back in 1531 . The brokers and moneylenders used to meet there to deal with the businesses. However, they never used actual stocks but traded in promissory notes and bonds. Later, the Amsterdam Stock Exchange was established in 1602 by the Dutch East India Company and regarded as the first real stock exchange. Since its inception, stock markets have served many purposes, the most important being to provide companies with a source to raise capital for investment and expansion. Why do stock markets exist? Stock markets exist to serve the wider economy. It helps individuals earn a profit on their income when they invest in the stock market and allo...