In a joint stock company a group of investors join together and pool their resources. Each one contributes some money. The money is used for the expenses of the company to purchase whatever the company needs. It may be a factory, a ship, some land, or something else.
Originally it involved the purchase of a ship. When the ship brought cargo back to England, the cargo and ship were sold, and the stockholders split the money among them according to the original investment.
The East India Company set up as a joint stock company. It brought back a load of pepper. The company decided to just sell a little bit at a time and keep the price high so the price would remain high. It became a continuous operation. Individual stock holders could sell their shares in the company.
The Virginia Company organized like the East India Company. It bought land from the King. It paid money to set up a colony. It paid for provisions for the first colonists. The colonists would also need to build houses and plant crops. After seven years, half of the houses and fields would belong to the colonists and half to the Virginia Company. The Virginia Company could then sell those houses and fields to other colonists.
Soon the King bought the stock in the Virginia Company from the stockholders and Virginia became a royal colony.
The Plymouth Company started the same way.
Rhode Island and Connecticut took their charter across the Atlantic so the King could not take it away from the company.
Dutch West India Company
Normally, when you buy stock, you buy that stock in a company that is run by a specific person or persons. However in a joint stock company, the owner is the shareholders.
no, they were proprietary colonies
define joint stock company discribe main feature of joint stock company
A Joint stock company allows more capital to be produced, allowing that capital to be reinvested in that company.
Dutch West India company ^-^
the parliament did not want to.
The IMPORTANCE of joint-stock companies in American History is the fact that: "the 1st English colonies had been established because of joint-stock companies"
Private funds from the creation of joint-stock companies.
Dutch West India Company
the London stock company was a 'joint' stock company with the Virginia stock company
The Virginia Company was a joint stock company, in which investors bought shares.
through private funds from the creation of joint-stock companies
The colonies were financed by a group of merchants that were called joint stock companies. Some of the companies were the London Company or the Massachusetts Bay Company.
joint stock company
Public Joint Stock Company, or Private Joint Stock Company
The Virginia Company was a joint stock company, in which investors bought shares.