Renaissance Capital

Definition

Renaissance Capital, often referred to as the Renaissance period in finance, marks a significant era of economic growth and market development following the Middle Ages. It is characterized by the establishment of modern banking institutions and financial markets.

5 Must Know Facts For Your Next Test

1. Renaissance Capital saw the emergence of joint-stock companies which allowed for shared ownership and investment.
2. This period led to the creation of major financial centers like Amsterdam and London.
3. The introduction of double-entry bookkeeping provided more accurate financial records.
4. It marked the beginning of international trade expansion through improved navigation technologies.
5. Renaissance Capital laid the groundwork for modern equity markets by facilitating broader investment opportunities.

Review Questions

• What are joint-stock companies and how did they impact Renaissance Capital?
• Which financial innovations during the Renaissance period contributed to the development of modern banking?
• How did Renaissance Capital influence international trade?

Related terms

Joint-Stock Company: A business entity where different stocks can be bought and owned by shareholders.

Double-Entry Bookkeeping: An accounting system that records each transaction twice, once as a debit and once as a credit.

Financial Centers: Cities or regions that are prominent in global finance due to their concentration of banks, stock exchanges, and other financial services.