?


    When Necker asked him that question, an answer quickly came to mind. In his original world, the stock exchange was a ce where people bought and sold ownership shares ofpanies. These shares represented a stake in apany''s assets and earnings. Investors would purchase these shares with the hope that thepany would perform well, allowing them to sell the sharester at a higher price and make a profit. It was a way for people to invest their money and potentially grow their wealth over time.


    The problem is, is it the same here? As far as he knows, stock exchanges in the eighteenth century were unregted and decentralized. Unlike the structured and supervised markets of his time, where rules and regtions governed trading practices, these historical stock exchanges might be a far cry from the organized systems he was ustomed to.


    "Honestly, my knowledge about the stock exchange is limited. Why did you bring it up?"


    "Well, Your Excellency, I''m proposing a reform of our stock exchange system. Since France is experiencing unprecedented industrialization, causing a rise in the middle ss and a surge in business activities, it seems like the right time to establish a more organized and regted stock exchange."


    "What is the name of the stock exchange that we have here?" Napoleon asked.


    "It''s called Paris Bourse, Your Excellency," Necker answered.


    "And how does it work?" Napoleon inquired, eager to understand the intricacies of this historical stock exchange system.


    "Paris Bourse, Your Excellency, functions as a gathering ce for brokers, where they facilitate the trading of government bonds,mercial bills, and shares of variouspanies. It operates primarily as an open-outcry exchange, where traders gather in a specific location, usually a designated trading floor, and engage in face-to-face transactions. Of course, trading is not limited to Bourse. What I envision is that we centralize the stock exchange and regte it as well."


    Napoleon gasped softly; he, too, had wanted to propose that idea, but it seemed that Necker had beaten him to it.


    "So we modernize our stock exchange…" Napoleon mused, his thoughts aligning with Necker''s proposal.


    "Yes, Your Excellency," Necker affirmed. "By centralizing and regting the stock exchange, we can establish clear rules and oversight, making it more transparent and trustworthy for investors. This, in turn, could attract more capital into our growing industries and stimte economic development."


    "Okay, whatever you need, I''ll provide. What regtory body should we establish to oversee the reformed stock exchange?"


    Necker considered the question carefully before responding. "We can name it the ''Commission for Financial Oversight.'' Thismission would be responsible for setting and enforcing trading rules, ensuring fair and transparent practices, and monitoring the overall stability of the stock exchange."


    Napoleon nodded in agreement. "The Commission for Financial Oversight sounds suitable for the task. How should we go about selecting its members?"


    "Your Excellency, I rmend appointing a mix of experienced financial experts, legal professionals, and representatives from the businessmunity. This diverseposition would ensure a bnced approach to regtion," Necker suggested.


    Napoleon agreed with the proposedposition. "Very well, Minister Necker. Please draft a proposal outlining the establishment of thismission, including its roles, responsibilities, and criteria for member selection. Once we have the framework in ce, we can proceed with the necessary reforms to modernize and regte our stock exchange. Also, do this to the banks as well. We have the national bank, now we need moremercial banks."


    Necker''s eyes gleamed with enthusiasm as he absorbed Napoleon''s directives. "Certainly, Your Excellency. I won''t fail you."


    Should they be able to implement what they have discussed here, there''s no doubt that would be in the economy. Commercial banks after all were the ones who would lend to the public, which would use that money to drive economic activities and further stimte growth.


    So far, there are nomercial banks in Paris. He wanted to introduce that now, and there''s no way he would miss the opportunity of opening one.


    ***


    October 15th, 1801.


    Just a week after Napoleon''s meeting with Necker, Necker returned to the Pce of Versailles, meeting Napoleon again in his office.


    "Necker. I didn''t expect you to return so soon," Napoleon mused.


    "That is because I couldn''t wait for long, Your Excellency. I have spent all day drawing up the initial ns for the establishment ofmercial banks in Paris and as well for the modernization of the stock exchange," Necker said with a determined look. "Can I show you the document? I have it here."


    "Okay, I can take a look at it…I still have time anyway before we leave for Madrid," Napoleon said.


    "Madrid?" Necker tilted his head to the side. "What are you going to do in Madrid?"


    "Oh, I haven''t told you about it. So, my wife, Ci, has a family in Spain, an influential one. I want to meet the parents of my wife," Napoleon exined.


    "I see…" Necker hummed in understanding. "So, Your Excellency, here is the document."


    Necker handed him the document detailing the ns for establishingmercial banks in Paris and modernizing the city.


    Napoleon epted the document from Necker and began to read it attentively. As he perused the ns for establishingmercial banks in Paris and modernizing the stock exchange, he could see that Necker had meticulously outlined the steps required for these ambitious reforms.


    The document described the process of selecting suitable locations for the newmercial banks, ensuring that they would be strategically positioned to serve the needs of both businesses and citizens. It also detailed the necessary regtory framework to govern these banks, emphasizing the importance of transparency and ountability.


    Regarding the modernization of the stock exchange, the document proposed centralizing the operations of the Paris Bourse and introducing regtions to enhance its transparency and integrity. Necker had clearly considered the potential benefits of these reforms in attracting investment and fostering economic growth.


    After a thorough review, Napoleon looked up at Necker and nodded with approval. "Minister Necker, these ns are well-conceived andprehensive. I can see that you''ve put a great deal of effort into this proposal. I''m going to sign this today and send it to the Senate."


    "Thank you, Your Excellency."


    "I can''t wait to open our firstmercial bank," Napoleon grinned and continued. "Which I will do once I return from Spain."


    "Well, Your Excellency, you''ll have toply with the necessary legal and regtory procedures," Necker chuckled.


    "That''s a good one, Necker," Napoleon chuckled in response.