JoinStock - Joint Stock Trading And other organizational...

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Joint Stock Trading And other organizational issues Historical Roots Roots in the medieval Commenda and Societas Allows for investment in overseas trade Shares risk among several participants Also roots in the Guild system Regulatory Perpetual life of the organization Staplers or Merchant Adventurers Merchants pay fees or levies to belong Company provides range of shipping and infrastructure services in foreign locations Joint Stock Companies Instead of each merchants placing his or her cargo on a vessel, now each member buys a share in the voyage Not all investors are actually merchants Needs more managerial staff to operate Over course of 17th c. investment in company itself not just a particular voyage Profits reinvested or distributed as dividends Voting rights based on shareholding Issue of liability Relationship to Government Government stepped in to limit liability
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JoinStock - Joint Stock Trading And other organizational...

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