During this time of exploration, many had dreams of striking it rich overseas and of finding new lands filled with gold and other treasures. For this reason, many people set out to find new trade routes. However in order to put together an expedition, one needed a great deal of money. As it happens many young adventurers teamed up with wealthy businessmen who also hoped to strike it rich on the road. These businessmen agreed to fund the trip for a portion of the profits.

This idea caught on and quickly spread among people of various levels of wealth developing into the world's first joint-stock companies. Joint-stock companies sell stock (a portion of ownership in the company). The more stock you own, the more of the company you own and, therefore, the greater percentage of the profits you receive. These joint stock ventures were also very popular because there was limited risk for the investor (person buying the stock). An investor can only lose as much money as he had paid in stock but he stood to make a lot of money if the expedition went well.

Activity: Imagine that you are living in Europe at this time. You have a friend leading an expedition to find riches and new trade routes, and he has invited you to join him. In your notes, write a letter explaining to him why you will or will not join him on this "adventure." Consider the potential gains and losses of this trip.

A drawing of an 18th century ship yard in front of an official-looking building

Source: Voc, Eriksw, Wikimedia