Industrial Revolution Investing The Industrial Revolutions of 1760-1840 and 1860-1914 resulted in greater prosperity as a result of which people amassed savings that could be invested, fostering the development of an advanced banking system. Most of the established banks that dominate the investing world began in the 1800s, including Goldman Sachs and J.P. Morgan. 20th Century Investing The 20th century saw new ground being broken in investment theory, with the development of new concepts in asset pricing, portfolio theory, and risk management. In the second half of the 20th century, many new investment vehicles were introduced, including hedge funds, private equity, venture capital, REITs, and ETFs. In the 1990s, the rapid spread of the Internet made online trading and research capabilities accessible to the general public, completing the democratization of investing that had commenced more than a century ago. 21st Century Investing The bursting of the dot.com bubble—a bubble that created a new generation of millionaires from investments in technology- driven and online business stocks—ushered in the 21st century and perhaps set the scene for what was to come. In 2001, the collapse of Enron took center stage, with its full display of fraud that bankrupted the company and its accounting firm, Arthur Andersen, as well as many of its investors. One of the most notable events in the 21st century, or history for that matter, is the Great Recession (2007-2009) when an overwhelming number of failed investments in mortgage- backed securities crippled economies around the world. Well- known banks and investment firms went under, foreclosures surmounted, and the wealth gap widened. The 21st century also opened up the world of investing to
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