Why did stock exchanges and banks arise?

With the development of foreign trade, many advantages have appeared, but also a number of disadvantages. Merchants were able to sail on ships to neighboring and not only countries in order to sell goods produced in their region and purchase goods that are available in other states. But on the other hand, it was not entirely clear how to deal with money, because each country had separate coins, which people could use to pay only within its borders. In order to somehow resolve this issue, groups of people appeared who worked in ports of different countries. In country # 1, a merchant gave his money to a company representative and received a letter indicating the amount. Coming to country number 2, he could receive money from this country at the rate in the amount that he had passed in advance with this letter. Thus, it was quite convenient for the merchant to use its money on the territory of each country, and the money changers (money changers) took a certain percentage and lived off of it. This was the first step towards the emergence of banks.

The exchanges were the answer to the embezzlers who lent money to desperate people at incredible interest rates (100,200). It was on the stock exchange that this issue could be solved more easily.