Financial Instruments In The Nineteenth Century

Financial instruments have played a key role in the evolution of human society and they have been present since the dawn of time. Evidence of such instruments can be traced as far as the first modern societies known to humankind that developed in Mesopotamia and they have taken different forms, revolving around three fundamental concepts: rationalizing commerce, finance and private property ownership . Three notions that have shaped the society over the millennia and that were designed to protect the individual against financial risk, in all forms.

As centuries passed, more advanced financial instruments, like coins or bills of exchange, were conceptualized during the Greco-Roman era. The pervasive goal was to facilitate and sustain the expansion

Four critical factors contributed to further development of public and private finance: social and physical security bestowed by the newly empowered parliament, improved quantitative techniques for management of financial affairs, newly established Bank of Britain allowed for greater financial flexibility through credit instruments and highly developed financial markets. Even though the nation-state was still under heavy financial burden caused by never-ending warfare it has slowly transitioned from an instrument to finance warfare to a welfare development

The industrial revolution that started in Britain and the major breakthroughs in transportation that followed gave birth to the oil and gas industry. It is one of the biggest, most unpredictable, and powerful global commercial industries. Oil and its byproducts touched almost everything from transportation, heating, and power supply to clothes and even food.

The Oil & Gas industry has faced significant opposition in the recent years but it continues to be one of industries with a significant impact in geopolitics and the source of international conflicts, ranging from civil wars to international armed intrusions in the pursuit to ever greater political influence.

The industry faced numerous accusations due to their apparently high profit margins of the recent years. Truth be told, Oil & Gas companies face a substantial amount of uncertainty as political interventions occur often and exploration rights is perceived as a strategic national interest. Moreover, the industry has to survive the numerous cycles which often last several years, leaving deep wounds in the balance sheets of the surviving corporations. Looking on the long term it is clear that the average return on sales is not significantly higher than the more traditional manufacturing or mining industry. In a report published by Fortune magazine analyzing the return on investment