Voyages and the first shares · 1100s–1600s
1553
A company instead of a voyage
London merchants form a joint-stock company to find a sea route to Asia.
In 1553 a group of London merchants pooled money to send ships looking for a northeast passage to Asia. Instead of funding one trip, investors bought shares in a company, later chartered as the Muscovy Company, that would run many trips.
💡 Why it made sense then
Long, expensive expeditions needed more money than a few partners had, and a lasting company could keep going after a single voyage failed.
Ideas it gave us
- 📈 Stock
A stock is a unit of ownership in a company. Owning stock gives you a share of the company's value and, usually, a vote and a claim on its profits.
Practise with $10,000 in play money
Free. No real money involved.