ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When people bought shares of stock in a company and investor combined their wealth for American colonization.
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When investors sold stock in a company and people combined their wealth for American colonization.
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When people sold stock in a company and investors combined their wealth for American colonization.
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When investors bought shares of stock in a company and people combined their wealth for American colonization.
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Detailed explanation-1: -A joint-stock company consisted of investors who pooled resources to fund an enterprise and, if it was successful, shared the profits. Using such an arrangement to fund colonial ventures proved to be attractive both to the Crown and to investors.
Detailed explanation-2: -Today’s joint-stock companies in the U.S. are called corporations, partnerships, and limited liability companies. While there is no legal business registration form labeled as “joint-stock company, ” the term can be used to describe any business entity that issues stock and has shareholders.
Detailed explanation-3: -joint-stock company, a forerunner of the modern corporation that was organized for undertakings requiring large amounts of capital. Money was raised by selling shares to investors, who became partners in the venture.
Detailed explanation-4: -Joint-stock companies were the key to colonizing the new world. These companies were created to pool the enormous amounts of resources and share the large amount of risk involved in overseas exploration and colonization.