Course:History 344 Nasty Families/Estates and gentry income/Joint Stock Companies
Joint Stock Companies
Origin
- The Joint stock company originated out late medieval Italy. It began as a means of effectively generating capital for ventures[1]. These ventures came in several forms initially in twelfth century Italy as provincial conflicts. It was customary in Italy for provinces to levi a tax known as the Montes, which meant any accumulation of money[2]. This began a shift from private companies to corporations and finally to joint stock companies that became the centerpiece of British business. The first recognized stock to be issued came from the Dutch East India Company. The first joint stock company was St. George’s Bank of Genoa[3], which was created in response to surmounting debt following war. Consolidation of the cities debts lead to a portioning and selling of the debt to allow the city to sustain itself, therefore creating the archetype of the joint stock company[4].
Buying in
- While joint stock companies in England began earlier than James I with the charter of the Honorable British East India Company by Elizabeth, James I would become responsible for the founding of several key companies that would be responsible for developing the New World. Such as the London Virginia and Plymouth Companies respectively[5]
- The cost of buying into Companies of the time was approximately 12 pounds 10 shillings or the equivalent of 6 months pay for the average working man[6]
- This was not restricted to just the common man, the largest investor was Thomas West, Lord de la Warr. This also allowed for the access to prominent positions in the new world.[7]
- This was also seen as an opportunity for the Gentry to raise in prominence as the idea of owning prosperous overseas colonies was a sure way to gain status[8]
- ↑ M. Schmitthoff, "The Origin of the Joint Stock Company," The University of Toronto Law Journal, 3, no. 1 (1939): 74-96, http://www.jstor.org/stable/824598 (accessed January 28, 2012).
- ↑ Schmitthoff 1939 p.77
- ↑ 3.Schmitthoff 1939 p.78
- ↑ Schmitthoff 1939 p.79
- ↑ Marks, Archibald. "The Virginia Company of London." Accessed January 28, 2012. http://www.historyisfun.org/pdf/Laws-at-Jamestown/VA_Company.pdf.
- ↑ Ibid.
- ↑ Ibid.
- ↑ Ibid.