Question

What was the purpose of a joint stock company? A) to help an individual who privately finances all voyages to the colonies of North America make a profit B) made money for the King of England to send settlers to the colonies of North America C) to allow a partnership between two companies that sell stocks to investors for a profit D) to make founding colonies less expensive by setting up a private trading company that sold shares to investors

Answer 1

I believe joint stock companies were used to make founding colonies less expensive. While they do allow a partnership between two companies that sell stocks for profits, in the context of history, I’d go with D.

Answer 2

Yeah I believe the answer is D