ABSTRACT
Through an examination of the relationship between the London Stock Exchange and the British government over the course of the twentieth century, it becomes possible to trace the changes that took place, suggest the reasons for them and identify what the position was at particular times. Prior to the First World War, the London Stock Exchange had emerged as the central component of a global market for corporate stocks and bonds, attracting investors, issuers and members from around the world. Many stock exchanges were abolished, while the survivors were subjected to varying degrees and types of state control. Even in Britain where, superficially, nothing appeared to have changed, the London Stock Exchange was converted into a semi-official branch of government with responsibility for supervising the securities market. By the beginning of the twentieth century, securities markets were playing a key role in the financial systems of most advanced economies and had also established niche position within many less developed countries.
