From Tally Sticks to Stocks
How Medieval Tools Shaped Modern Finance
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The origin of the word “stock” can be traced back to medieval Europe and the use of an item called a “tally stick”. It was basically a wooden stick on which notches were made to record data that needed to be remembered, like debts and similar transactions. This was done by splitting the stick into two parts and later comparing the notches on both halves.
The two parts were not of equal length: the shorter part was retained by the seller and was called the “foil”, while the longer part was kept by the buyer and was called the “stock”. This is likely the origin of the terms “owning stock” and “stockholder”.
More about stock market vocabulary can be found in my article in Gabrijela’s Newsletter publication:
Business English Unlocked: Stock Market