Stockholm derives its mythological origin from a dwelling place called Agnefit. The second element fit means 'moist meadow' and, arguably, the only possible location for a meadow in present-day Stockholm at the time was on the western shore of today's Stadsholmen. The first element of this name is, explains the historian Snorri Sturluson (1178–1241), derived from King Agne, a presumably mythological king who in a dim and distant past (around 400 A.D. according to some historians) encamped here after having successfully raided Finland. His intentions were to marry Skjalf, the daughter of the defeated Finnish tribal chief. The young woman, however, tricked him to arrange a celebration including prominent guests which eventually turned into a boozing party, and, while Agne slept sober, Skjalf had him hung in his gold necklace before escaping.
A modern story dated back to the mid 17th century, tells how the population of Birka, a historical city on Lake Mälaren, grew too rapidly, and the Gods then consulted urged parts of the population to emigrate to a new site. To determine where to build the new city, it was decided a log bound with gold should point out where to settle by sailing ashore on the site, and, occasionally, it landed on an islet in what is today central Stockholm. According to a 17th century myth, the tower Birger Jarls torn, often and erroneously said to be the oldest building in Stockholm, was built on this location.
Read more about this topic: Prehistory And Origin Of Stockholm