The Low Devolutionary
The secondary market emerges the moment a security has been issued once and becomes transferable — but historically, this separation crystallized in the early 17th century with the Dutch and English joint‑stock companies. When a market for resale peels away from the market for issuance is one of those deep structural thresholds in capitalism. The structural moment: 1602–1698 The secondary market becomes a distinct institution only when shares become alienable, durable, and widely held enough to circulate independently of the issuing company. That happens in three linked steps: 1. 1602 – The Dutch East India Company (VOC) creates permanent, transferable shares. Before this, “shares” in merchant ventures were typically tied to a single voyage and liquidated afterward. There was no need for a resale market. The VOC’s innovation: - permanent capital (no liquidation after each voyage); - transferable shares recorded in a ledger; - a large, dispersed investor base. Thi...