History of investments
Investing has evolved over many years: from antiquity to the present, it continues to change. During this time, people have learned to understand the golden rule of investing and life: "You need to do something in the present to get something in the future."
Investing in Antiquity
The first investment appeared with the emergence of commodity-money relations.
The first mentions from Ancient Babylon testify to the competent handling of money. Those who are already familiar with the book "The Richest Man in Babylon" by J. Clason remember that the rules of financial literacy and money management can help in creating their savings.
In ancient Babylon, the people quickly understood the importance of proper financial management, distribution of income and expenses. Proper management of financial flows gave the Babylonians the opportunity to improve the well-being of their families and build the first metropolis in the world.
In ancient Greece, a credit system was common. Interestingly, initially financial literacy was taught only to noble citizens. For the rest of the population, the science of finance was inaccessible.
Mortgages, various interest-bearing loans, maritime trade, real estate even then provided opportunities for investment.
Middle Ages The
Latin word “in vest" means “in a waistcoat, dress, put on”, suggesting a long-term investment. Later, a new meaning of “investing something” appeared. This interpretation is explained by the fact that in the early Middle Ages there were many investors, who were vassals of the feudal lords.
The feudal lords appointed vassals instead of themselves in order for them to manage and dispose of the owner’s lands. So the feudal lord became a manager who fed and clothed the possessions of the feudal master. The main part of the profit from work was received by the feudal lord, and the vassal was paid only a salary.
Investments were used in various spheres of life of that time. They began to be used everywhere with the main goal – making a profit.