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Joint-stock companies

Definition

These are businesses owned by shareholders who each contribute some money to the company's capital. Profits and losses are shared among shareholders according to their investment.

Related terms

Stock Market: A place where buyers and sellers meet to trade stocks/shares. The stock market allows companies to raise money by offering stock shares and corporate bonds.

Dividends: These are payments made by a corporation to its shareholders, usually in the form of cash or additional shares. It's like getting a slice of the pizza profits in our analogy.

Capitalism: This is an economic system where private entities own the factors of production. The four factors are entrepreneurship, capital goods, natural resources, and labor.

"Joint-stock companies" appears in:

Subjects (2)

  • AP European History

  • AP US History

Study guides (1)

  • AP World History: Modern - 4.5 Maritime Empires Maintained and Developed

Practice Questions (1)

  • How did England and the Netherlands use joint-stock companies, especially their East India Companies?

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About Us

About Fiveable

Blog

Careers

Code of Conduct

Terms of Use

Privacy Policy

CCPA Privacy Policy

Resources

Cram Mode

AP Score Calculators

Study Guides

Practice Quizzes

Glossary

Cram Events

Merch Shop

Crisis Text Line

Help Center

© 2024 Fiveable Inc. All rights reserved.

AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.