ECON350 Lecture Notes - Lecture 10: Stock Market Index, Bank Of Amsterdam, Joint-Stock Company
Document Summary
Topic 7: equity markets (share to finance lt project) Some of the important developments of stock market: governance reform at the voc. to protect the wealth, to represent investor right: trading in voc shares became increasingly formalised. The amsterdam exchange bank accepted company growing, no capital to invest, get loan and buy share, share is used as collateral, this is leverage investment in the share market. Before voc, in the west want to do trading with east, buy spice, form company, put money together sail to india buy spices, sell good and get proceed to pay off the initial investment from investor, one. Off thing, unlimited liability, partnership, after voc, limited liability, loss is restricted, issuing share to finance bigger ship sailing to east india: the first real prototype of the modern, perpetual, joint-stock company was the (cid:494)united. Dutch chartered east )ndia company(cid:495) (cid:523)voc(cid:524), the largest private enterprise of the (cid:883)(cid:889)th century.
