Edinburgh Stock Exchange facts for kids

The Edinburgh Stock Exchange was a special place where people bought and sold parts of companies, called shares. It was set up in Edinburgh, Scotland, a long time ago in 1844. It's important not to mix it up with the Royal Exchange, which was a different building.

What Was the Edinburgh Stock Exchange?

People in Edinburgh started trading shares around 1825. But the official Edinburgh Stock Exchange began in 1844. Seven "brokers" – these are people who buy and sell shares for others – met on December 16, 1844. They decided to create a proper exchange because the business of buying and selling shares was getting much bigger.

Another exchange, called the Edinburgh and Leith Commercial and Stock Exchange, started the next year. Some traders didn't want to follow the rules of the first exchange. For example, you had to live in Edinburgh and be chosen by two members to join. But in 1856, these two exchanges joined together.

The start of the stock exchange happened at the same time as other money-related businesses grew in Edinburgh. For instance, groups for accountants and actuaries (people who work with financial risks) were also formed around this time.

Where Was the Exchange Located?

The Edinburgh Stock Exchange first started in a small office at No. 71 Princes Street. But it soon moved to South St. David Street. After some ups and downs in business, they looked for smaller places. But then things got better, and by 1870, they needed new, bigger offices again.

In 1874, the exchange moved to Craigie Hall. Then, in 1880, it moved back to South St. David Street. A brand new building was built there in 1888. This building stood for a long time until a modern one replaced it in 1966.

Joining Forces: The Scottish Stock Exchange

In 1964, the Edinburgh Stock Exchange joined with other stock exchanges in Scotland. These were the ones in Glasgow, Aberdeen, and Dundee. Together, they formed the Scottish Stock Exchange.

Even though they joined, they still traded shares in each city. But Glasgow became the main office for the group. However, the Scottish Stock Exchange closed down in 1973. This meant that the Edinburgh Stock Exchange offices also closed their doors.

Most of the shares from Scottish banks were traded at the Edinburgh exchange. Banks like the Bank of Scotland, the Caledonian Bank, and the City of Glasgow Bank were listed there. News about share prices from the Edinburgh Stock Exchange was printed in local newspapers. First, it was in the Edinburgh Evening Courant until 1886. After that, it appeared in the Edinburgh Evening News.

A New Idea: SCOTEX

There's been a plan for a new Edinburgh Stock Exchange. It's called SCOTEX. This idea was suggested around 2017 or 2018 by some former traders from a big US stock exchange called Nasdaq. They needed approval from a financial authority to start it.

The proposed SCOTEX would create a "Scots-50" index. This index would rank the top 50 leading companies listed in Scotland. This idea came up after the UK's Brexit vote. There was also an expectation of another vote for Scottish Independence by 2019, though that vote did not happen.