Final answer:
The first stock exchange was established in Amsterdam. Brokers, merchants, and investors met at these stock exchanges. Stock exchanges facilitated the process of raising capital for businesses by allowing companies to sell stocks and bonds to investors.
Step-by-step explanation:
The first stock exchange was established in Amsterdam with the creation of the Dutch Vereenigde Oostindische Compagnie (VOC) in 1602. Brokers, merchants, and investors met at these stock exchanges to trade shares, facilitating the process for individuals and companies to raise money for their businesses.
The Amsterdam Beurs, an early stock exchange, was where VOC shares could be traded, along with various other financial services. These stock exchanges provided a platform for companies to raise the capital they needed by selling stocks and bonds to interested investors who, in turn, had the potential to profit from the success of these ventures.