Joint-stock Company
A business entity in which shares of the company's stock can be bought and sold by shareholders
Real World Example
Before 1500, people primarily relied on individual wealth or family fortunes to fund ventures, which limited the scale of exploration and trade. The joint-stock company emerged as a solution, allowing multiple investors to pool their resources and share in the profits and risks of large enterprises, like overseas explorations. This innovation was crucial in funding voyages that led to the discovery of new lands and resources, which significantly shaped global trade and interaction. Today, joint-stock companies form the backbone of the modern economy, as they allow ordinary people to invest in businesses by buying shares, enabling companies to grow and innovate. For example, when you buy stock in a company like Apple, you own a small part of the business and can benefit from its success, impacting your financial future and the economy at large.
