207k views
2 votes
What major step did european governments take to raise investor confidence in the wake of the economic crisis of the 1870s?

User Ascalonian
by
8.2k points

1 Answer

6 votes
They passed new laws that enabled people to open Limited Liability Corporations. That meant that people could not be personally liable if the company failed if it wasn't their fault, so you couldn't blame them and take money from them or things like that. It is basically the basis for how companies work nowadays.
User Avinash Sonee
by
8.7k points